Kent Cables Private Limited and Ors. vs. Union of India and Ors.

Case Citation: MANU/DE/5310/2023

Introduction

The case of Kent Cables Private Limited and Ors. vs. Union of India and Ors. revolves around a contentious issue in the realm of intellectual property rights. The Petitioners, Kent Cables Private Limited and others, have approached the High Court of Delhi through a writ petition seeking the quashing of the publication in Trade Mark Journal no. 2110, dated 26th June 2023. This publication advertised Respondent No. 3’s trade mark ‘KENT’ as included in the list of well-known trademarks under Rule 124(5) of the Trade Mark Rules, 2017.

The case involves complex legal question surrounding the declaration of a trade mark as “well-known” by the Registrar of Trade Marks. The issues at hand range from procedural matters to substantive questions, and they also touch upon question of jurisdiction. This article aims to dissect the case, scrutinize the arguments presented by both parties, and delve into the implications and significance of the decision.

Procedural History

On 14th July 2023, the High Court issued an order directing the Registrar of Trade Marks to produce the entire record related to the publication in question. In response to this directive, the Registrar filed a comprehensive record spanning over a thousand pages, setting the stage for a detailed examination of the case.

Issues Presented

1. The primary issue revolves around jurisdiction. The Respondents argue that all applications for well-known mark status are processed, hearings are held, and orders are passed exclusively in the Registrar of Trade Marks’ Office in Mumbai. Therefore, they contend that a writ petition challenging such an advertisement or publication by the Registrar of Trade Marks can only be filed before the High Court of Bombay.[p1] 
2. The alternative remedy of filing an appeal under Section 91 of the Trade Marks Act, 1999 is also brought into question. The Respondents assert that this remedy is available only before the High Court of Bombay.
3. Another crucial issue pertains to whether the declaration of well-known mark status is subject to review under Section 124(6) and 127 of the Trade Marks Act, 1999.

Rules of Law

The case involves the interpretation and application of several provisions of the Trade Marks Act, 1999, including:

1. Section 124(5): This section pertains to the declaration of a trade mark as “well-known” and the criteria for making such a declaration.
2. Section 124(6): It deals with the cancellation of well-known mark status.
3. Section 125: This section provides for the effect of a trade mark being declared as well-known.
4. Section 127: It outlines the grounds for rectification of the register.
5. Section 91: This section pertains to appeals from orders of the Registrar.

Contentions of the Plaintiff

The Petitioners argue the following points:

1. The well-known mark application was filed with the address of service in Gurgaon, establishing a connection to the National Capital Region.
2. The applicant for the well-known mark has listed an address based out of New Delhi.
3. A significant part of the cause of action arose in New Delhi due to the aforementioned factors.
4. They rely on orders passed by the High Court of Delhi for the declaration of a well-known mark under Section 125 of the Act.

Contentions of the Defendants

The Respondents, on the other hand, counter the Petitioners’ arguments:

1. They maintain that all applications for well-known mark status are exclusively processed and heard in the Registrar of Trade Marks’ Office in Mumbai.
2. They argue that a writ petition challenging such an advertisement can only be filed before the High Court of Bombay.
3. The alternative remedy of filing an appeal under Section 91 of the Trade Marks Act, 1999 is highlighted, emphasizing that it is available solely before the High Court of Bombay.
4. The Respondents raise questions regarding the reviewability of the declaration of well-known mark status under Sections 124(6) and 127.

Analysis and Reasoning

The central point of contention in this case is the jurisdiction of the High Court of Delhi to entertain the Petitioners’ writ petition challenging the publication of the ‘KENT’ mark as a well-known mark.

The Respondents’ argument that such matters fall under the exclusive jurisdiction of the High Court of Bombay due to the Registrar’s location in Mumbai is plausible. However, the Petitioners have put forth a compelling counterargument. They emphasize that the application for well-known mark status and the applicant’s address have connections to New Delhi, establishing a substantial part of the cause of action in the National Capital Region.

Furthermore, the Petitioners rely on High Court orders from Delhi in support of their claim for well-known mark status, adding another layer of complexity to the jurisdictional debate.

The Court’s observations on the need for the Registrar to scrutinize Court orders that may have referenced a mark as “well-known” is noteworthy. This indicates that a mere passing reference or an ex parte injunction order may not suffice for the declaration of a trade mark as well-known under Section 124(5) of the Trade Marks Act, 1999.

Holding and Decision

While the final decision in this case will be rendered after due consideration of the arguments presented by both parties, the Court has provided some preliminary guidance. It has highlighted the need for the Registrar to assess the specificity of Court orders referencing a mark as well-known and consider whether such orders are based on substantive declarations or mere observations.

This preliminary guidance emphasizes the importance of thorough scrutiny before declaring a mark as “well-known” under Section 124(5) of the Trade Marks Act, 1999.

Implications and Significance

The outcome of this case carries significant implications for the realm of intellectual property rights, particularly in the context of well-known trademarks. The clarification on jurisdiction is crucial, as it determines the appropriate forum for challenging the Registrar’s decisions in such matters.

Furthermore, the Court’s emphasis on the scrutiny of Court orders and the need for specific declarations has the potential to influence the process of declaring well-known marks, making it more stringent and legally robust.

Critique and Commentary

While the case analysis has focused on the presented facts and legal arguments, it is important to note that the Court’s final decision will provide a more comprehensive understanding of the legal principles involved. Additionally, the case highlights the importance of well-established procedures and the need for clarity in the declaration of well-known marks.

Conclusion

The case of Kent Cables Private Limited and Ors. vs. Union of India and Ors. raises intricate questions concerning the jurisdiction of the High Court of Delhi, the reviewability of well-known mark status, and the scrutiny of Court orders. The final decision, in this case, will shape the landscape of intellectual property rights, providing guidance on the declaration of well-known trademarks under the Trade Marks Act, of 1999. It underscores the significance of procedural clarity and legal robustness in the realm of intellectual property law. This case stands as a testament to the evolving nature of IP law and the need for precise legal interpretations, especially relating to jurisdictional issues in an increasingly complex domain of well known marks.