{"id":302043,"date":"2023-09-21T13:00:10","date_gmt":"2023-09-21T07:30:10","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=302043"},"modified":"2023-09-27T13:20:51","modified_gmt":"2023-09-27T07:50:51","slug":"delhi-hc-refuses-restrains-parle-from-using-for-the-bold-campaign-label-legal-news","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2023\/09\/21\/delhi-hc-refuses-restrains-parle-from-using-for-the-bold-campaign-label-legal-news\/","title":{"rendered":"[PepsiCo v Parle] Delhi High Court refuses to restrain Parle from using ‘For The Bold’ campaign as a label on its ‘B Fizz’ bottle"},"content":{"rendered":"
\n

Delhi High Court:<\/span> In a case wherein an application under Order XXXIX Rules 1<\/a> and 2<\/a> of Civil Procedure Code, 1908<\/a> was filed by the plaintiffs and application under Section 124(1)(a)(ii)<\/a> of the Trade Marks Act, 1999<\/a> (\u2018the TM Act\u2019) filed by the defendant, C. Hari Shankar, J.*<\/span>, rejected the interlocutory injunction against the use of the defendant\u2019s \u2018For the Bold\u2019 part of the label on its \u2018B Fizz\u2019 bottle and accordingly disposed of the application filed by the plaintiff. The Court, however\u00a0 restrained the defendant during the proceeding from using the tagline \u2018For the Bold\u2019\u00a0 as part of its advertising campaign.<\/p>\n

Background<\/p>\n

In the instant case, PepsiCo, the plaintiff instituted a suit against Parle, the defendant to seek permanent injunction against the defendant for using the tagline \u2018For the Bold\u2019. The plaintiff had also filed an application to seek an interlocutory injunction. Thereafter, during the pendency of the suit, the defendant had filed an application under Section 124(1)(a)(ii) of the TM Act for grant of leave to the defendant file a rectification petition challenging the registration of the petitioner\u2019s \u2018For the Bold\u2019 trade mark. The defendant had also filed the suit for cancellation of the plaintiff\u2019s registration of \u2018For the Bold mark\u2019.<\/p>\n

Analysis, Law, and Decision<\/p>\n

The Court referred to Patel Field Marshal Agencies<\/span> v. P.M Diesels Ltd<\/span>, (2018) 2 SCC 112<\/a> and opined that the Supreme Court had conferred an exclusive jurisdiction with regard to the rectification petition on Intellectual Property Appellate Board (\u2018IPAB\u2019). The Court under Section 124(1)(a)(ii) of the TM Act, could only pronounce that whether the issue was arguable or not and any observation beyond ascertaining the tenability would influence the IPAB, which was the only authority to adjudicate the rectification petition and pronounce on the challenge to the validity of the mark.<\/p>\n

The Court further opined that the Court while examining the prima facie tenability of the challenge to the validity of the mark under Section 124(1)(a)(ii) of the TM Act, only required to ascertain that the pleadings were sufficient to make out a challenge that was worth considering.<\/p>\n

The Court while considering the issue whether the issue defendant\u2019s mark \u2018Be the Fizz! For the Bold! infringed the plaintiff\u2019s \u2018For the Bold!\u2019 mark, opined that the it had to be seen whether a customer of average intelligence who saw the plaintiff\u2019s mark, when came across the defendant\u2019s mark was likely to wonder as to whether the two marks had an association with each other.<\/p>\n

The Court examined Section 29(2)(b) of the Act and opined that the Court was required to examine the following:<\/p>\n

    \n
  1. Whether the rival marks were similar<\/li>\n
  2. Whether the goods or services covered by the rival marks were identical or similar<\/li>\n
  3. \n

    Whether owing to such similarity of the marks there was either likelihood of confusion or association<\/p>\n<\/li>\n<\/ol>\n

    Thus, the Court opined that when the aforementioned requisites are cumulatively found to exist, an infringement would follow.<\/p>\n

    The Court noted that in the label of the defendant\u2019s \u2018B Fizz\u2019 bottle, it took an effort to notice the \u2018For the Bold\u2019 tagline as it was printed upside down. The slogan was comparatively small in size and the least conspicuous part of the defendant\u2019s label was \u2018For the Bold\u2019 tagline and the customer who was particularly searching for the tagline would notice it.<\/p>\n

    Thus, the Court applied the principle of the two marks as a whole, coupled with the aspect of likelihood of confusion or association between the two marks in the minds of a customer of average intelligence and imperfect recollection, the Court opined that the mark \u2018For the Bold!\u2019 was not infringing as per Section 29(2) of the TM Act.<\/p>\n

    The Court noted that the defendant used the plaintiff\u2019s registered mark in two ways, one as a part of its label, while the other as a part of its advertising campaign. The Court opined that the Court could not injunct a mark, it could injunct the infringing use of the mark which could be injuncted. Thus, the Court opined that the defendant\u2019s use of \u2018For the Bold\u2019 on the label on \u2018B Fizz bottle\u2019 was not injuncted, but the manner in which the defendant used \u2018For the Bold\u2019 in its advertising campaign on Facebook had to be injuncted.<\/p>\n

    The Court applied the test laid down in Kaviraj Pandit Durga Dutt Sharma<\/span> v. Navaratna Pharmaceutical Laboratories<\/span>, 1964 SCC OnLine SC 14<\/a> and opined that the defendant\u2019s use of the impugned slogan on the \u2018B Fizz\u2019 product was sufficiently distinct and different from the plaintiff\u2019s use of the impugned slogan. The Court further opined that there was no likelihood of confusion between the plaintiff\u2019s registered \u2018For the Bold\u2019 mark and the defendant\u2019s \u2018Be the Fizz! For the Bold!\u2019 tagline.<\/p>\n

    The Court opined that a passing off could be returned only if at the first instance plaintiff proved that there existed sufficient goodwill and reputation of the mark which it sought to assert. The Court further opined that since in in the present case, there was no evidence of any goodwill and reputation being earned by the plaintiff for its use of the \u2018For the Bold\u2019 mark, the passing off plea could not sustain.<\/p>\n

    The Court allowed the application filed by the defendant and opined that the challenge by the defendant to the registration of the \u2018For the Bold\u2019 mark was found to be tenable and the Court did not express its opinion on the merits of the challenge.<\/p>\n

    The Court rejected the interlocutory injunction against the use of the defendant\u2019s \u2018For the Bold\u2019 part of the label on its \u2018B Fizz\u2019 bottle and accordingly disposed of the application filed by the plaintiff. The Court however restrained the defendant from altering its label on the \u2018B Fizz\u2019 bottle without prior approval of the Court. The Court further restrained the defendant form using the tagline \u2018For the Bold\u2019 as part of its advertising campaign.<\/p>\n

    The Court directed the defendant to place on record the entire returns earned by the sales of its \u2018B Fizz\u2019 beverage, which contained \u2018For the Bold\u2019 label from the time the use of the said label commenced, duly certified by a Chartered Accountant. The Court further directed the defendant to continue to file duly certified figures od returns of sales from \u2018B Fizz\u2019 beverage during pendency of the suit.<\/p>\n

    The Court further listed the suit filed by the defendant for cancellation of the registration of the \u2018for the Bold\u2019 mark to 17-10-2023.<\/p>\n

    [Pepsico Inc v. Parle Agro Pvt. Ltd., 2023 SCC OnLine Del 5823<\/a>, decided on 18-9-2023<\/span>]<\/p>\n

    *Judgment authored by- Justice C. Hari Shankar<\/span><\/strong><\/p>\n

    \n

    Advocates who appeared in this case :<\/p>\n

    For the Plaintiffs: Mr. Amarjit Singh Chandhiok, Senior Advocate with Manish Jha, Dhruv Nagar, Avni Sharma, Advocates;<\/p>\n

    For the Defendant: Sudhir Chandra, Senior Advocate with Ankur Sangal, Pragya Mishra and Shashwat Rakshit, Advocates<\/p>\n

    Buy Trade Marks Act, 1999 \u00a0 HERE<\/a><\/h3>\n

    \"trade<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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