The Delhi High Court has granted a permanent injunction in favor of Eureka Forbes, protecting its rights against the counterfeiting of spare parts and consumables for its widely known water purifier brand, Aquaguard.
The judgment, delivered by Justice Amit Bansal, recognized that Eureka Forbes has established substantial goodwill and copyright over the Aquaguard label due to its continuous and long-standing use. The court found that the defendants were infringing on both the trademark and copyright of Eureka Forbes by selling counterfeit products under the brand name.
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The defendants in the case included various dealers and distributors located across Maharashtra, Odisha, and Delhi, with one John Doe defendant also included in the list.
“The unauthorised use of the 'AQUA' marks by the said defendants is deliberate, unjustified, and intended solely to capitalise on the plaintiff's established goodwill,” observed the Court.
The court pointed out that Eureka Forbes had no control over the quality of the fake products, and their sale was likely to cause confusion among consumers. This not only dilutes the distinctiveness of the Aquaguard brand but also harms public trust and affects Eureka Forbes' business interests.
Some of the defendants, including Defendant nos. 3, 6, 7, and 8, agreed to mediation, and the matter was amicably settled and decreed in favor of Eureka Forbes.
Similarly, Defendant no.1 agreed to pay ₹60,000, and Defendant no.10 paid ₹10,000 in damages as part of the settlement.
However, defendants numbered 2, 4, 5, 9, 11, and 13 failed to respond to court summons and did not submit any written statements. As per legal procedure, the court considered all allegations made in the plaint by Eureka Forbes to be admitted by default.
“Such acts pose a grave threat to the plaintiff’s business interests and hard-earned reputation,” the judgment stated.
Based on the substantial evidence presented and the quantity of counterfeit Aquaguard products seized, the Delhi High Court directed several defendants to pay monetary damages to Eureka Forbes. The court ordered Defendant no.2 to pay ₹30,000, Defendant no.4 to pay ₹1,00,000, and Defendant no.5 to pay ₹60,000. Additionally, Defendant no.9 was instructed to pay ₹15,000, while Defendant no.13 was required to pay ₹10,000. These penalties were imposed to compensate Eureka Forbes for the harm caused to its brand reputation and consumer trust due to the circulation of fake spare parts.
Appearance: Mr. Shivankar Sharma and Mr. Ayush Singh, Advocates for Plaitniff; Mr. Divyansh Tiwari, Advocate for defendant no. 1. Mr. Dharmendra Kr. Verma, Advocate for defendant no. 10. Mr. Nipun Dwivedi, Advocate for defendant no. 12.
Case title: Eureka Forbes Limited (Formerly Forbes Enviro Solutions Limited) v. Nandan Sales And Ors
Case no.: CS(COMM) 566/2023