Plaintiff's 'SOCIAL' Marks Declared Well-Known Amidst Infringement and Passing Off Claims
In a significant ruling, the Delhi High Court has decreed in favor of Impresario Entertainment and Hospitality Pvt. Ltd., declaring its 'SOCIAL' trademark as well-known under Section 2(1)(zg) of the Trade Marks Act, 1999. The decision was handed down by Justice Tejas Karia in the case against M/s The Shake Social, which was proceeded ex-parte due to the defendant's non-appearance and failure to file a written statement.
Impresario, a prominent entity in the restaurant and hospitality industry, established its 'SOCIAL' brand in 2014, creating a unique blend of workspace and café environments. The company has since expanded to operate 55 outlets across India, achieving significant recognition and goodwill.
The plaintiff alleged that The Shake Social, operating under a similar mark in Valsad and Navsari, Gujarat, was infringing and passing off its trademark, causing consumer confusion and diluting Impresario's established goodwill. Despite multiple notices, The Shake Social continued its operations, prompting legal action from Impresario.
In the absence of any defense from the respondent, the court accepted the plaintiff's claims, recognizing the substantial evidence of goodwill, reputation, and extensive use of the 'SOCIAL' mark. Justice Karia found the defendant's actions dishonest, aimed at misleading consumers into associating its services with Impresario's renowned brand, amounting to unfair competition.
The court highlighted Impresario's impressive turnover of Rs. 4,75,17,86,921/- and promotion expenditure of Rs. 29,93,18,789/- in FY 2023-24 as further proof of its brand's stature. The judgment emphasized the plaintiff's consistent marketing efforts and the 'SOCIAL' mark's recognition within the hospitality industry.
The court's decree in favor of Impresario includes a permanent injunction against The Shake Social, prohibiting further use of the infringing mark. However, the judgment refrained from awarding costs and damages.
This verdict reinforces the protection of well-known trademarks in India, underscoring the judiciary's stance against unfair practices that exploit established brand reputations.
Bottom Line:
Trade Mark infringement and passing off - Plaintiff's Marks declared as well-known Marks under Section 2(1)(zg) of the Trade Marks Act, 1999.
Statutory provision(s): Trade Marks Act, 1999, Section 2(1)(zg)
