Financiere Batteur Sas vs Kalai Arasu
- Neutral2024:MHC:4092
Ratio decidendi
The rule this decision rests on
A registered trademark may be removed under Section 47(1)(b) of the Trade Marks Act, 1999 on the ground of non-use for a continuous period of five years from registration and three months prior to the application for removal, unless the registered proprietor establishes special circumstances within the meaning of Section 47(3)—namely, legal restrictions or regulations imposed by law preventing use of the mark, and not any voluntary cessation or loss of intention to use the mark. A threat of litigation or anticipated legal conflict does not constitute "special circumstances" within Section 47(3), and therefore cannot excuse non-use of a trademark that has never been used in actual trade since its registration on a "proposed to be used" basis.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
(T)OP(TM) No.481 of 2023
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Reserved on : 05.12.2024
Pronounced on : 11.12.2024
CORAM:
THE HON'BLE MR. JUSTICE ABDUL QUDDHOSE
(T) OP (TM) No.481 of 2023
Financiere Batteur Sas, Avenue du General de Gaulle, France. .. Petitioner
vs.
1.Kalai Arasu, trading as Spot Light, Bangalore – 560 047.
2.The Registrar of Trade Marks, Trade Marks Registry, Guindy, Chennai. \ .. Respondents
Prayer: This petition is filed under Sections 47 and 57 of the Trade Marks Act, 1999, seeking to expunge, remove and/or cancel the entry relating to the impugned registered trademark No.2897583 in Class 05 for the trademark “Physiolac AR” in the name of the first respondent.
https://www.mhc.tn.gov.in/judis
1 of 26 (T)OP(TM) No.481 of 2023
For Petitioner : Mr.Arun C.Mohan for Mr.Sharad Vedehra
For R1 : Mr.B.Karthik For R2 : Mr.C.Samivel, SPCGSC
ORDER
This petition has been filed under Sections 47 and 57 of Trade Marks Act,
1999 (in short “the Act”) seeking for cancellation of the trademark “Physiolac
AR” bearing application No.2897583 registered in favour of the first respondent
under Class 05 on a "proposed to be used” basis.
2. The petitioner claims that they are a globally recognized company
engaged in the manufacture and marketing of a wide range of products in the
health and beauty care sectors, particularly, focused on baby and childcare
products.
3. According to the petitioner, their predecessor in title conceived the
trademark “PHYSIOLAC” in the year 1992 and the mark was first introduced
commercially in France in 1996. According to them, the mark was specifically
designed for dietary formulations and related baby and childcare products.
https://www.mhc.tn.gov.in/judis
2 of 26 (T)OP(TM) No.481 of 2023
4. According to the petitioner, since 2007, they have been actively using
various iterations of the mark “PHYSIOLAC” in international markets and these
include PHYSIOLAC AR, PHYSIOLAC RELAIS/RELAY, PHYSIOLAC
GRAND APETIT, PHYSIOLAC CROISSANCE/GROW, PHYSIOLAC BIO,
among others. The petitioner claims that they have obtained trademark
registration for their trademark in various countries abroad. According to them,
their trademark “PHYSIOLAC” has acquired status of a well-known mark as
contemplated under Article 6(bis) of the Paris Convention, to which, India is a
signatory, and as per Section 2(1)(zg) of the Act. According to the petitioner,
their trademark “PHYSIOLAC” has garnered substantial trans-border reputation,
and the consumers in India are familiar with the PHYSIOLAC products and their
variants.
5. The petitioner has obtained registration for the word mark
“PHYSIOLAC” in India in Application No.3401439 under Class 05 for dietetic
substances for medical use, food for babies, and food for babies made of milk and
cereals; in Class 29 for milk and milk products; and under Class 30 for cereals and
preparations made from cereals. The trademark registration in favour of the
petitioner is valid upto 02.11.2026.
https://www.mhc.tn.gov.in/judis
3 of 26 (T)OP(TM) No.481 of 2023
6. According to the petitioner, immediately after coming to know about the
malafide application filed by the first respondent for the impugned mark, along
with several others, under the provisions of Section 18(1) of the Act, on a
“proposed to be used” basis in the year 2015, the petitioner issued letters dated
01.09.2016 and 12.09.2016 to the first respondent requesting them to withdraw
their trademark application for Physiolac mark and its variants in Classes 5 and
30, which pertain to goods related to baby foods and dietary formulation.
7. According to the petitioner, they had filed their oppositions to 15 other
malafide applications of the first respondent, some of which have been deemed
abandoned, but, wrongfully, the second respondent has granted registration for a
device mark under application No.2897583 in Class 5 and the said applications
have been filed by the first respondent on 03.02.2015 on a “proposed to be used”
basis. The petitioner issued a cease and desist notice dated 09.12.2016 through
their counsel to the first respondent calling upon them to withdraw their pending
trademark applications relating to “Physiolac” listed under application
Nos.2897576 to 2897592.
8. According to the petitioner, they conducted an in-house investigation on
06.06.2017, which confirmed that the first respondent had never used the https://www.mhc.tn.gov.in/judis
4 of 26 (T)OP(TM) No.481 of 2023
trademark “PHYSIOLAC”. According to the petitioner, on investigation, it was
revealed that the first respondent's primary business activities were related to
event management services under the name “SPOT LIGHT”, but, they have no
involvement in the baby foods and nutritional supplements sectors.
9. According to the petitioner, the malafide intent of the first respondent
became unequivocally clear if one observes that the impugned mark has not been
put to any actual, genuine or meaningful use for a single day since its registration.
According to the petitioner, the prolonged period of non-use is in direct
contravention of Section 47(1)(a) of the Act, which mandates that a registered
trademark must be used 3 months prior from the date of filing of an application
and 5 years from the date of registration. According to the petitioner, the
prolonged non-use of the impugned mark reveals that the first respondent had no
intention of using the trademark at the time of its registration, which indicates bad
faith.
10. According to the petitioner, the first respondent had obtained
registration by using the mark “PHYSIOLAC” to prevent other legitimate users
including the petitioner from registering or using the mark “PHYSIOLAC”.
According to the petitioner, the impugned trademark registration in the name of https://www.mhc.tn.gov.in/judis
5 of 26 (T)OP(TM) No.481 of 2023
the first respondent is illegal, malafide and contrary to the provisions of the Act.
According to the petitioner, the impugned mark has been adopted in bad faith with
intention of frustrating the rights of genuine users and continuance of the
impugned mark in the Register of Trademarks is detrimental to the business of the
petitioner.
11. On the other hand, the first respondent has filed a counter affidavit
denying the contentions of the petitioner. They contend as follows:-
(a) They secured registration for the trademark “PHYSIOLAC AR” in the
year 2016, evidencing a bona fide intention to operate in the specialized segment
of baby food and food substances for children adapted for medical use, on a
'proposed to be used' basis.
(b) The petitioner is not a person aggrieved as contemplated under Section
47 of the Act. According to the first respondent, Section 47 of the Act has been
judicially interpreted to require demonstration of actual damage or injury in a
practical business sense.
(c) According to the first respondent, the requirement of the petitioner to
demonstrate actual damage or injury must exist not only at the time of filing of the
petition but also continue until final determination, which the petitioner has failed
to demonstrate.
https://www.mhc.tn.gov.in/judis
6 of 26 (T)OP(TM) No.481 of 2023
(d) Despite its international acclaim, the petitioner, an entity based in
France, has neither established any commercial presence nor conducted any
business activity in India under the impugned mark. No evidence has been
produced by the petitioner to demonstrate; (a) any sales or business operation in
India; (b) marketing or promotional activities within Indian territory; (iii)
distribution networks or channels in India; and (iv) consumer recognition or
goodwill in the Indian market.
(e) The first respondent obtained registration of the mark “PHYSIOLAC
AR” on 30.09.2016, through a bona fide and lawful process after complying with
the requirements of the Act. The first respondent applied for the impugned mark
with a genuine intention to use it in the course of trade, specifically for goods in
the medical nutrition segment. The first respondent has consistently acted in good
faith with intention of building a reputable business under the impugned mark.
(f) The non-use of the first respondent's trademark “PHYSIOLAC AR” is
protected under Section 47(3) of the Act, which provides an exception for non-use
due to special circumstances in the trade. According to the first respondent,
Section 47(3) expressly recognizes that non-use resulting from restrictions
imposed by law or other external circumstances beyond the control of the
proprietor does not amount to abandonment or an intention not to use the mark.
(g) According to the first respondent, the non-use of the mark was not https://www.mhc.tn.gov.in/judis
7 of 26 (T)OP(TM) No.481 of 2023
voluntary, but, was prompted by the receipt of a cease and desist notice form the
petitioner on 09.12.2016, shortly after the registration of the first respondent's
mark “PHYSIOLAC AR” ON 30.09.2016. Given the petitioner's international
stature and anticipated litigation, the first respondent prudently decided to
reconsider its business strategy to avoid brand dilution, market confusion, and
costly legal conflicts. According to the first respondent, this conduct
demonstrates the first respondent's bona fide intention to act responsibly and
protect the integrity of its brand while complying with the applicable laws.
(h) The cancellation petition filed by the petitioner in the year 2019 is
barred by limitation under Section 137 of the Limitation Act, 1963, as it was
initiated three years after the cause of action arose in 2016, following the first
respondent's registration of the trademark “PHYSIOLAC AR” on 30.09.2016.
According to the first respondent, permitting the delayed applications without
valid justification encourages the abuse of the legal process enabling frivolous and
vexatious litigation. According to the first respondent, the delay in filing the
cancellation petition by the petitioner is unexplained and unjustifiable,
demonstrating a lack of diligence. According to the first respondent, the petitioner
being a commercially sophisticated entity failed to act within the prescribed period
and cannot now be permitted to circumvent procedural safeguards under the guise
of pursuing justice.
https://www.mhc.tn.gov.in/judis
8 of 26 (T)OP(TM) No.481 of 2023
(i) Failure to address any grounds under Section 57 of the Act or its related
provisions indicates a lack of diligence and weakens the foundation of the
petition. This omission suggests that the petition lacks merit, particularly
concerning the claims of wrongful registration or error in the register under
Section 57 of the Act and seeking to limit their arguments under the ambit of
Section 47 of the Act is to be viewed as an attempt to better a case which was non-
existent.
(j) The absence of substantive arguments under Section 57 of the Act not
only undermines the petitioner's case but also fails to provide necessary clarity for
the adjudicating authority to determine whether rectification is warranted.
Therefore, the claim of the petitioner under Section 57 of the Act remains
unsubstantiated and should be dismissed for want of evidence and arguments.
(k) The petitioner has failed to adduce sufficient evidence for the use,
recognition or promotion of its mark in India, thereby rendering its claim of well-
known mark under the Act untenable. As per Sections 2(1)(zg) and 11 of the Act
a trademark is considered well-known mark based on various factors including its
recognition by the public; the extent and geographical area of its use and
promotion; the number of consumers; and the record of enforcement of the
trademark rights. According to the first respondent, the petitioner has not met the
threshold requirement under the Act to prove that their mark is a well-known mark https://www.mhc.tn.gov.in/judis
9 of 26 (T)OP(TM) No.481 of 2023
in India. The petitioner has not provided any substantial evidence of the mark's
use in India or its consumer recognition. While the petitioner may have presented
sales figures from global markets and promotional materials, they have failed to
provide any concrete evidence of actual sales, consumers, or distribution networks
in India. Furthermore, mere brochures and promotional materials do not suffice to
establish the well-known status of a mark in India, especially when the mark has
not been demonstrated to be widely recognized by the public in India. In the
absence of evidence proving the extent and geographical spread of use in India
including sales figures and consumers outreach, the petitioner's claim of well-
known status is unsustainable.
(l) The first respondent's trademark “PHYSIOLAC AR” was registered on
30.09.2016, well before the petitioner obtained its trademark registration on
12.02.2020, albeit for the mark “PHYSIOLAC” under Class 99 as against the
mark of the first respondent “PHYSIOLAC AR” under Class 5. This clear
chronological precedence establishes the first respondent as the prior registered
proprietor of the mark in question.
(m) Section 28 of the Act clearly vests the registered proprietor of a
trademark with exclusive rights to use the mark in connection with the goods or
services for which it is registered. It further confers the right to prevent others
from using identical or deceptively similar marks for similar goods or services, https://www.mhc.tn.gov.in/judis
10 of 26 (T)OP(TM) No.481 of 2023
which could lead to consumer confusion or dilution of the trademark's
distinctiveness. The first respondent, as the prior registered proprietor, enjoys
these statutory protections, which are fundamental to maintaining the integrity of
the Trademark Register and preventing public deception. A trademark's
reputation and rights must be established within the territorial boundaries of India,
rather than relying solely on global goodwill or recognition.
(n) The petitioner has failed to demonstrate sufficient goodwill, reputation,
or market presence in India to assert rights over their mark. The petitioner's mark
has not acquired the requisite local recognition or consumer association in the
Indian market to claim prior use or adoption.
12. The learned counsels for the petitioner as well as the first respondent
reiterated the contents of the affidavit filed in support of the petition as well as the
counter affidavit respectively, during the course of their submissions
13. In support of his submissions, the learned counsel for the first
respondent drew the attention of this Court to the following authorities:-
(i) Hardie Trading Ltd. Vs. Addisons Paint and Chemicals Ltd.
[(2003) 11 SCC 92];
(ii) Infosys Technologies Ltd. Vs. Jupiter Infosys Ltd. [(2011) 1 https://www.mhc.tn.gov.in/judis
11 of 26 (T)OP(TM) No.481 of 2023
SCC 125];
(iii) Jagatjit Industries Ltd. Vs. Intellectual Property Appellate
Board [AIR 2016 SC 478];
(iv) Eagle Potteries Private Ltd. Vs. Eagle Flask Industries Pvt.
Ltd. [AIR 1993 BOM 185];
(v) Godfrey Phillips India Ltd. Four-Square House Vs. Khoday
India Limited and Ors. [2023 SCC Online Mad 7201];
(vi) Sony Group Corporation Vs. Walkman Rubber Industries
and others, (T) CMA (TM) No.25 / 2023, dated 17.11.2023; and
(vii) Toyota Jidosha Kabushiki Kaisha Vs. Prius Auto
Industries Ltd. And Others [AIR 2018 SC 167].
DISCUSSION:-
14. The learned counsel for the petitioner primarily laid emphasis to Section
47 of the Act and submitted that due to non-usage of the trademark “PHYSIOLAC
AR” by the first respondent for more than 5 years and 3 months, the trademark
registration obtained by the first respondent has to be cancelled. The learned
counsel for the petitioner did not lay emphasis on Section 57 of the Act, which
enables this Court to cancel a trademark registration if the same was granted
wrongfully. Therefore, this Court has to consider only as to whether the petitioner https://www.mhc.tn.gov.in/judis
12 of 26 (T)OP(TM) No.481 of 2023
has satisfied the requirements of Section 47 of the Act for seeking cancellation of
the first respondent's trademark “PHYSIOLAC AR” on account of its non-usage
for more than 5 years and 3 months, which enables this Court to cancel trademark
registration.
15. The intention behind Section 47 of the Act is to prevent hoarding of
trademarks. It stipulates that a registered trademark may be taken off from the
Register, in case of non-use, if the trademark was registered without any bona fide
intention on the part of the applicant to use it and there has in fact been no bona
fide use of the said trademark for the time being up to a date three months before
the date of application and a period of 5 years or longer from the date on which
the trademark was registered had elapsed during which there was no bona fide use
of the said trademark. Section 47 of the Act reads as follows:-
47. Removal from register and imposition of limitations on ground of non-use.
(1) A registered trade mark may be taken off the register in respect of the goods or services in respect of which it is registered on application made in the prescribed manner to the Registrar or the High Court by any person aggrieved on the ground either--
(a) that the trade mark was registered without any bona fide intention on the part of the applicant for
https://www.mhc.tn.gov.in/judis
13 of 26 (T)OP(TM) No.481 of 2023
registration that it should be used in relation to those goods or services by him or, in a case to which the provisions of section 46 apply, by the company concerned or the registered user, as the case may be, and that there has, in fact, been no bona fide use of the trade mark in relation to those goods or services by any proprietor thereof for the time being up to a date three months before the date of the application; or
(b) that up to a date three months before the date of the application, a continuous period of five years from the date on which the trade mark is actually entered in the register or longer had elapsed during which the trade mark was registered and during which there was no bona fide use thereof in relation to those goods or services by any proprietor thereof for the time being:
Provided that except where the applicant has been permitted under section 12 to register an identical or nearly resembling trade mark in respect of the goods or services in question, or where the Registrar or the High Court, as the case may be, is of opinion that he might properly be permitted so to register such a trade mark, the Registrar or the High Court, as the case may be, may refuse an application under clause (a) or clause(b) in relation to any goods or services, if it is shown that there has been, before the relevant date or during the relevant period, as the case may be, bona fide https://www.mhc.tn.gov.in/judis
14 of 26 (T)OP(TM) No.481 of 2023
use of the trade mark by any proprietor thereof for the time being in relation to--
(i) goods or services of the same description; or
(ii) goods or services associated with those goods or services of that description being goods or services, as the case may be, in respect of which the trade mark is registered.
(2) Where in relation to any goods or services in respect of which a trade mark is registered--
(a) the circumstances referred to in clause (b) of sub-section (1) are shown to exist so far as regards non-
use of the trade mark in relation to goods to be sold, or otherwise traded in a particular place in India (otherwise than for export from India), or in relation to goods to be exported to a particular market outside India; or in relation to services for use or available for acceptance in a particular place in India or for use in a particular market outside India; and
(b) a person has been permitted under section 12 to register an identical or nearly resembling trade mark in respect of those goods, under a registration extending to use in relation to goods to be so sold, or otherwise traded in, or in relation to goods to be so exported, or in relation to services for use or available for acceptance in that place or for use in that country, or the Registrar or the High Court, as the case may be, is of opinion that he might properly be permitted so to register such a https://www.mhc.tn.gov.in/judis
15 of 26 (T)OP(TM) No.481 of 2023
trade mark, on application by that person in the prescribed manner to the High Court or to the Registrar, may impose on the registration of the first-mentioned trade mark such limitations as it thinks proper for securing that registration shall cease to extend to such use.
(3) An applicant shall not be entitled to rely for the purpose of clause(b) of sub-section(1) or for the purposes of sub-section(2) on any non-use of a trade mark which is shown to have been due to special circumstances in the trade, which includes restrictions on the use of the trade mark in India imposed by any law or regulation and not to any intention to abandon or not to use the trade mark in relation to the goods or services to which the application relates.
16. In Kabushiki Kaisha Toshiba v. Tosiba Appliances Co. [(2008) 10
SCC 766], the Hon’ble Supreme Court opined that a registered trademark confers
a valuable right upon the registered proprietor. Therefore, the intention to use the
trademark ought to be genuine and real. If a person does not have any bona fide
intention of using the trademark, he is not expected to get his trademark registered
nor prevent any other person from using the same. In such a way, trafficking of
trademarks is restricted.
https://www.mhc.tn.gov.in/judis
16 of 26 (T)OP(TM) No.481 of 2023
17. In Neon Laboratories Ltd. v. Medical Technologies Ltd. [2016 (2) SCC
672], the Hon’ble Supreme Court placed reliance on Section 47 of the Act, which
postulates that a registered trademark may be taken off the Register in case there is
no bona fide use of the trademark for a continuous period of 5 years and 3 months.
In the said case, the Appellant-Defendants did not use their trademark for 12
years, which inferred that they had abandoned their trademark at some point
during that period. The legislative intent behind section 47 is to prevent hoarding
of trademarks in case of non-utilization. The applicant of a trademark does not
have a permanent right over their trademark. Such a right is lost if it is not
exercised within a reasonable time.
18. It is an accepted legal position that the one pleading non-user must
prove it and in that regard, courts across the country have held a consistent view in
a plethora of cases, including the decision of the Hon'ble Supreme Court in
Kabushiki Kaisha Toshiba (cited supra).
19. Under Section 47 of the Act, an application may be filed by any person
aggrieved with the registration of the trademark. Section 47(1) of the Act deals https://www.mhc.tn.gov.in/judis
17 of 26 (T)OP(TM) No.481 of 2023
with two scenarios, under which, a registered trademark may be subject to
removal. The circumstances in which a registered trademark can be considered
for cancellation are as follows:-
(a) Absence of bonafide intention:-
The bonafide intention is in the context of use of the trademark. If the
person who registered the trademark did not plan to actually use it for the goods or
services listed and in fact, has not used until three months before someone applies
for its removal, the trademark can be taken off/removed from the register.
(b) Non-use of the trademark:-
Section 47(1)(b) of the Act provides another ground for removal, wherein,
if it is established by the applicant that there has been no bonafide use of the
trademark for a continuous period of 5 years from the date of registration of the
mark and 3 months prior to filing the application for registration, then, in that
case, the trademark in question is liable to be removed.
20. There are certain exceptions to the general non-use laid down under
Section 47(1) of the Act. A registered trademark may not be removed if the
circumstances meet the conditions outlined in the proviso to Section 47(1) read
with Section 46 of the Act, which include:
(a) A company is in the process of being incorporated under the Companies https://www.mhc.tn.gov.in/judis
18 of 26 (T)OP(TM) No.481 of 2023
Act, 1956, and the current owner of the trademark plans to transfer the trademark
to the new company soon.
(b) The trademark owner plans for the trademark to be used by a registered
user after the trademark's registration.
(c) The applicant has been allowed to register an identical/similar trademark
under Section 12 of the Act.
(d) If the trademark is used bonafide for similar or associated goods or
services, the High Court or the Registrar might decide not to remove it.
21. Under Section 47(2) of the Act, if a trademark has not been used in
specific areas or for particular markets, whether inside or outside India, and
another person is allowed to register a similar trademark under Section 12 of the
Act, then the Tribunal may impose restrictions on the original trademark on the
basis of an application filed before the High Court or the Registrar. These
provisions ensure that trademarks are actively used and are not just registered
without any real intention of being used. If a trademark has not been used by a
company or a proprietor for a long time, it can be removed from the register.
22. Further, Section 47(3) of the Act provides another exception to removal
of the trademark due to non-use. It provides that if there are special https://www.mhc.tn.gov.in/judis
19 of 26 (T)OP(TM) No.481 of 2023
circumstances, like legal restrictions or regulations preventing the use of the
trademark, and most importantly, these circumstances are not created with an
intention to stop using the trademark, then in that case, the non-use would not
count against the trademark owner. The essential point is, if there is a valid reason
why the trademark could not be used, the owner would not loose the trademark
because of non-use.
23. Insofar as the case on hand is concerned, the following are the
undisputed facts:-
(a) Ever since the first respondent obtained trademark registration for its
trademark “PHYSIOLAC AR” in 2016, they have not put to use the said
trademark for their business activities.
(b) The first respondent is not dealing with the products for which they had
obtained trademark registration under the trademark “PHYSIOLAC AR”, through
application No.2897583 under Class 5.
(c) The first respondent has also admitted as seen from their pleadings that
they are presently having an established business engaged in event management
and they are not involved in the business of dietary formulation and child care
products, which are the core business of the petitioner.
(d) The first respondent had obtained trademark registration for their https://www.mhc.tn.gov.in/judis
20 of 26 (T)OP(TM) No.481 of 2023
trademark “PHYSIOLAC AR” only on 'proposed to be used' basis. The first
respondent claims protection of their trademark registration only under Section
47(3) of the Act, which provides that if there are special circumstances, like legal
restrictions or regulations preventing the use of the trademark, cancellation of the
trademark cannot be permitted under Section 47 of the Act. However, according
to the first respondent, only on the ground that there was an imminent threat of
cancellation of their trademark “PHYSIOLAC AR” from the petitioner, they did
not use the said trademark for their business activity.
24. The petitioner is a leading player in the health and beauty care products,
particularly, focused on baby and childcare products. Their mark “PHYSIOLAC”
enjoys protection through the trademark registration obtained in several countries,
including France, Cambodia, Hong Kong, Myanmar, Taiwan, the United States,
Vietnam, Sri Lanka and Tunisia. The respective trademark registrations obtained
by the petitioner have also been filed as documents, which have not been disputed
by the first respondent. The sales turnover of the petitioner's business under their
trademark “PHYSIOLAC” is huge and is beyond comparison to that of the first
respondent's turnover. The petitioner has obtained registration for the mark
“PHYSIOLAC” in Application No.3401439 under Class 5 for dietetic substances
for medical use, food for babies, and food for babies made of milk and cereals; https://www.mhc.tn.gov.in/judis
21 of 26 (T)OP(TM) No.481 of 2023
under Class 29 for milk and milk products; and under Class 30 for cereals and
preparations made from cereals. The said registration is valid upto 02.11.2026.
25. The petitioner had also entered into a joint venture with an Indian
partner in the year 2017 and thereby incorporated a new company by name Gilbert
Jain Laboratory Private Limited in September, 2017. To strengthen its presence
in Indian market, the certificate of incorporation of the joint venture has also been
filed as a document before this Court by the petitioner.
26. Section 47(3) of the Act is an exception to the provisions of Section
47(1) and (2) of the Act, and the special circumstances must include legal
restrictions or regulations, that prevent the use of the trademark. In the case on
hand, the first respondent admits the non-usage of its trademark “PHYSIOLAC
AR”. But, at the same time, pleads special circumstances for its non-usage. They
have pleaded that only due to the fact that there was an imminent threat of
cancellation subsequent to the registration obtained by the petitioner for the
trademark “PHYSIOLAC AR”, they have not used the trademark “PHYSIOLAC
AR” till now for their business activities. The exception provided under Section
47(3) of the Act for non-usage does not empower the first respondent to seek
protection under those exceptions, since their plea does not fall under any of the https://www.mhc.tn.gov.in/judis
22 of 26 (T)OP(TM) No.481 of 2023
categories of special circumstances, namely, (a) legal restrictions or regulations
that prevent use of the trademark; and (b) the non-usage is not intended to stop
using the trademark. Admittedly, the first respondent did not have any legal
restriction on account of any statutory regulation and they were not prevented
from using the trademark “PHYSIOLAC AR” The first respondent did not also
commence any business activity concerning the products for which they had
obtained trademark registration in respect of the trademark “PHYSIOLAC AR”.
Eventhough they had obtained trademark registration in the year 2016 itself, till
date, they have not started any business activity involving the products for which
they had proposed to use the trademark “PHYSIOLAC AR” as per the trademark
registration obtained by them.
27. As stated above, the petitioner is admittedly a leading player both in
India as well as in Abroad in respect of manufacture and marketing of a wide
range products in the health and beauty care sectors, particularly focused on
childcare products. They have also obtained trademark registrations all over the
world including India for their trademark “PHYSIOLAC”. The reason given by
the first respondent for the non-usage from 2016 till date is untenable, as despite
the fact that there was no legal embargo for them to use the mark, they have not
been using it. Though registration was obtained in the year 2016 itself, they have https://www.mhc.tn.gov.in/judis
23 of 26 (T)OP(TM) No.481 of 2023
not used the trademark “PHYSIOLAC AR” for more than 5 years and 3 months
prior to the filing of this petition. Therefore, for the reasons stated above, the
petitioner has satisfied the requirements of Section 47 of the Act for the purpose
of cancelling the trademark registration obtained by the first respondent for the
trademark “PHYSIOLAC AR”. It is clear that only with malafide intent to ride
over the reputation and goodwill of the petitioner's trademark “PHYSIOLAC”
internationally in India, the first respondent had obtained trademark registration
for the trademark “PHYSIOLAC AR” in India under Class 5 pertaining to the
products which are identical products for which the petitioner had already
obtained registration under the very same trademark “PHYSIOLAC” and they are
also having a high reputation and goodwill in the international market, which off-
late has also gained reputation in India as well.
28. The trademark registration granted by the second respondent for the
trademark “PHYSIOLAC AR” in favour of the first respondent is contrary to the
provisions of the Trade Marks Act for the reasons stated supra and therefore,
necessarily, on account of its non usage by the first respondent, it has to be
cancelled under the provisions of Section 47 of the Act. The impugned mark
adopted by the first respondent is in bad faith with the intention of frustrating the
rights of genuine users and therefore, continuance of the impugned mark will be https://www.mhc.tn.gov.in/judis
24 of 26 (T)OP(TM) No.481 of 2023
detrimental to the business of the petitioner. This Court has also considered the
proposition of law laid down in the decisions relied upon by the learned counsel
for the first respondent cited supra and only in accordance with the well settled
propositions, this Court is allowing this petition.
29. In the result, the second respondent is directed to remove the trademark
“PHYSIOLAC AR” bearing application No.2897583 in Class 5 standing in the
name of the first respondent from the Register of Trademarks, within a period of
four weeks from the date of receipt of a copy of this order. Accordingly, this
petition is allowed as prayed for with costs.
11.12.2024
rkm Index:yes Neutral citation: yes
To
The Registrar of Trade Marks, Trade Marks Registry, Chennai.
https://www.mhc.tn.gov.in/judis
25 of 26 (T)OP(TM) No.481 of 2023
ABDUL QUDDHOSE,J.
rkm
(T) OP (TM) No.481 of 2023
11.12.2024
https://www.mhc.tn.gov.in/judis
26 of 26
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free