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Writer's pictureLexTalk World
Nov 22, 20234 min read

New Balance wins trademark infringement case against counterfeiters


Introduction


In the global arena of commerce, where trademarks and brand identities are paramount, the protection of intellectual property rights is an indispensable pillar of legal justice. In a recent milestone case, New Balance Athletics Inc., a renowned global footwear, and apparel brand, emerged victorious against a group of defendants charged with trademark infringement and counterfeiting. The Delhi High Court's decision in favor of New Balance Athletics Inc. serves as a striking illustration of the Indian judiciary's dedication to safeguarding the interests of legitimate brand owners and consumers alike.


The Parties at Odds


The protagonists in this legal saga were New Balance Athletics Inc. (the plaintiff) M/s Transtonnelstroy Afcons JV and others (the defendants). The defendants had plunged into the treacherous waters of selling counterfeit readymade garments adorned with the marks "NEW BALANCE" and "NB" without securing any authorization or consent from the plaintiff. New Balance Athletics Inc. claimed a rich heritage of using these distinctive marks for several decades, both in the United States and India. These marks had not only become synonymous with their products but had also garnered a substantial reputation and goodwill among consumers. The plaintiff had diligently registered these marks across various classes in India and other countries, buttressing their intellectual property rights.


Discovering the Counterfeit Scheme


The plaintiff's pursuit of justice was set in motion when they stumbled upon the defendants' nefarious activities on online platforms. It was there that the defendants brazenly offered counterfeit products bearing the plaintiff's coveted trademarks. Disturbed by this discovery, the plaintiff enlisted the aid of an investigator, who not only confirmed the veracity of the allegations but also provided photographic evidence of the counterfeit goods being sold at the defendants' premises.


Seeking Legal Redress


With a clear case of trademark infringement and the malicious intent of passing off their products as genuine New Balance merchandise, the plaintiff approached the Delhi High Court. Their primary objectives were twofold: first, to secure an injunction restraining the defendants from continuing their unlawful use of the trademarks, and second, to demand the surrender of the seized counterfeit goods. The plaintiff also sought compensation for the financial losses they incurred due to the defendant's actions.


Courtroom Drama Unfolds


The Delhi High Court became the stage for a legal showdown that would be etched in the annals of trademark law. The court, after hearing the arguments presented by both sides, arrived at a scathing indictment of the defendants. It was a remarkable ruling that would set a precedent in the fight against trademark infringement and counterfeiting.


Trademark Infringement and Passing Off


The court unequivocally held the defendants guilty of both trademark infringement and passing off. The plaintiff's marks, "NEW BALANCE" and "NB," were deemed distinctive and well-known, and the defendants had adopted them dishonestly and deceitfully. The intention was clear: to exploit the reputation and goodwill that New Balance Athletics Inc. had cultivated painstakingly over the years.


The court also took note of a significant detail – the defendants' failure to provide any plausible explanation for the origin of these marks, which were identical or deceptively similar to those of the plaintiff. The lack of written statements or affidavits to contest the plaintiff's allegations, and their absence from court despite being duly served with notices, further eroded the defendants' credibility.


A Decree in Favor of the Plaintiff


In a verdict that would reverberate through the legal community, the Delhi High Court ruled in favor of New Balance Athletics Inc. The court's decree included a permanent injunction against the defendants, putting an immediate halt to their infringing activities. Additionally, the court ordered the defendants to surrender the seized counterfeit goods to the plaintiff, an act that symbolized the rightful restoration of New Balance's intellectual property.


The court also recognized the financial burden placed on the plaintiff by this legal battle and awarded actual costs of Rs. 4 lakhs. The defendants were jointly and severally held responsible for this payment, ensuring that the plaintiff would be compensated for their legal expenses.


Protection of Intellectual Property Rights Reinforced


This landmark judgment by the Delhi High Court is more than just a victory for New Balance Athletics Inc.; it is a resounding affirmation of the commitment to safeguard intellectual property rights in India, particularly in cases of counterfeiting and piracy. The court's clear and unambiguous stance against trademark infringement and passing off serves as a powerful deterrent to potential offenders and a source of inspiration for brand owners seeking legal recourse.


In a world where brands invest heavily in establishing their identities and reputations, this case underscores the pivotal role played by the judiciary in preserving the integrity of intellectual property rights. It sends a resounding message to counterfeiters and infringers that the law will staunchly protect the interests of genuine brand owners, ensuring the authenticity and quality of products for consumers.


In conclusion, the victory of New Balance Athletics Inc. over the counterfeiters highlights the significance of a robust legal framework and a vigilant judiciary in upholding intellectual property rights, ultimately fostering a climate of trust, integrity, and innovation in the marketplace. This case serves as a beacon of hope for brand owners and a warning to those who seek to exploit the hard-earned goodwill of established brands for their illicit gains.


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