The Court said that selling inferior quality PUMA shoes would lead to erosion of its brand equity and result in dilution of its trademarks.
The Delhi High Court recently ordered an Agra based shopkeeper to pay ₹10 lakh damages to PUMA for selling counterfeit shoes using the trademark ‘PUMA’ and its ‘leaping cat device'.
Justice Prathiba M Singh said that the defendant Ashok Kumar trading as ‘Kumkum Shoes’ was aware of the brand equity enjoyed by the ‘PUMA’ mark and deliberately chose to manufacture and sell counterfeit products under the said mark and ride piggy-back on PUMA’s goodwill and reputation.
The Court noted that as per the report of the Local Commissioner, Kumkum Shoes’ has made a profit of nearly ₹18 lakh to ₹19 lakh from selling counterfeit PUMA shoes and therefore the suit was liable to be decreed in favour of PUMA with damages to the tune of ₹10 lakh and costs of ₹2 lakh.
The Court added that the use of ‘PUMA’ mark and logo by the defendant on inferior quality products would not only result in violation of PUMA’s statutory and common law rights but will also lead to erosion of its brand equity and result in dilution of the marks.
“Such infringement if left unchecked would also be contrary to the consumer’s interests, inasmuch as the consuming public may be purchasing the counterfeit products and paying a higher price presuming the same to be the Plaintiff’s branded products. Thus, the sale of such counterfeit products is even contrary to the public interest.”
PUMA approached the High Court last year alleging that various counterfeit products under the mark ‘PUMA’ were being sold in Agra, Uttar Pradesh as well as Delhi and Haryana.
The Court passed an interim order in September 2022 restraining the defendant from selling or manufacturing any shoes with the PUMA trademark.
A report prepared by the local commissioner revealed that the defendant was running a full scale manufacturing operation in respect of counterfeit PUMA shoes.
As the defendant chose to stay away from the proceedings, the Court passed the decree of permanent injunction.
Advocates Ranjan Narula and Shashi P Ojha appeared for PUMA.
No one appeared for the defendant Ashok Kumar.