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Our Legal Correspondent

Chennai , Nov. 18

THE Madras High Court has held that use of same colour combination and get-up of labels used to market edible oil by a manufacturer could not be used by another company to market its product simply because the business of the former was not affected by such usage by the latter.

A Division Bench consisting of Mr Justice N.V. Balasubramanian and Mr Justice V. Kanagaraj, while allowing an appeal by a Chennai-based edible oil manufacturer, said: "We do not find any reason to accept the submission by the defendant (also a Chennai-based edible oil manufacturer) that since the business of the plaintiff ( SVS Oil Mills, appellant) is not affected, they may be permitted to use the same colour combination and get-up of the labels of the plaintiff.''

The Bench accepted the submission of the appellant that there was a close similarity between the labels of the plaintiff and that of the defendant. Though it was contended that the goods were purchased in large quantities by hotels and others, if the defendant's products were supplied as that of the plaintiff, "we are prima facie of the view that the buyers may believe that the products have come from the plaintiff's source due to the similarity in colour scheme and get-up of the labels.''

The case of the plaintiff (appellant in this case) was that the colour scheme, and get-up and distribution of letters `SVS' adopted in the labels and pouches for selling the various kinds of edible oil were used by them extensively and had acquired tremendous reputation and goodwill for their quality and reliability. The plaintiff submitted that the defendants were exploiting the commercial goodwill attached to the colour scheme by using the same colour combination while marketing their edible oil products. Against their suit praying for a temporary injunction restraining the defendants from manufacturing and marketing their products by using the trade mark as shown in the plaintiff's labels and pouches, a single judge in his order dated October 7, 2003 held that the plaintiff was not entitled to any temporary injunction. The present appeal was against the single judge's order.

The defendants submitted that the colour scheme and get-up of the plaintiff were not similar to that of the defendants and the defendants did not use the `SVS' label with the colour combination as contended by the plaintiff.

The Bench held that it was true that the plaintiff could not claim monopoly over any colour or scheme and yellow and red colours were commonly used by edible oil manufacturers in the containers.

The case of the plaintiff was that after the 2nd defendant (S.V. Natesan, Chennai) left the firm, he started business using the word `SVS', and when such usage was objected to, the 2nd defendant changed the trade name into `SVN' , but started to use the labels with similar colour scheme and get-up of the plaintiff.

The Bench said that the material form, colour and get up of the scrapper or label or container of the articles were the physical means of expression, and the design of the container or the label was of great significance as it was meant to catch the vision of any purchaser. There was a close similarity between the labels of the plaintiff and those of the defendants, and this would cause confusion and deception in the minds of the consumers. Irreparable loss and injury would be caused to the plaintiff if the defendants were permitted to trade with the labels with close similarity to that of the plaintiff, the Bench held.

More Stories on : Brands | Oilseeds & Edible Oil | Courts/Legal Issues

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