Tribunals and CommissionsDivision Bench(2011) 10 IPAB CK 0008

M/s. Prestige Estates Projects (P) Ltd., "The Falcon House", No. 1 Main Guard Cross Road, Bangalore - 560 001 vs M/s. Presteege Property Developers, Devi Complex, Dorai Swami Iyer Road, Cochin - 35, Kerala

Intellectual Property Appellate Board · Decided on 31 October 2011 · Citation: (2011) 46 PTC 558 (IPAB)

HON’BLE JUDGES
Prabha Sridevan, J · S. Usha, J
RESULT
Allowed
CASE NUMBER
ORA/255/2008/TM/CH

AI Structured Summary

Not yet generated for this judgment

Judgment

135 paragraphs · 2,612 words

S. Usha, J

1 . Application for removal of trade mark registered under No. 1386891 in Class 37 under the provisions of the Trade Marks Act, 1999 (hereinafter

referred to as the Act). The facts of the case are the applicants are engaged in real estate and construction activities since last nearly two decades.

They are one of the reputed builders having built innumerable shopping complex and residential apartments layouts in and around the city of Bangalore

and other parts of India. The various residential and commercial complexes executed over the last two decades have become landmarks in the city of

Bangalore and other places. The residential and commercial complexes built by the applicants are identified with their trade name PRESTIGE,

PRESTIGE GROUP an PRESTIGE ESTATES.

2.

The applicants vide a partnership deed dated 1st April, 1986 commenced their business in real estate of building construction under the name and

style of PRESTIGE ESTATES AND PROPERTIES. On 4.6.1997, the said partnership w converted into a private limited company under the name

and style PRESTIGE ESTATES PROJECTS PVT LTD.

3 . On account of high quality construction, intrinsic value, salesmanship, advertisement, promptness in executing projects, they have built a vast

reputation and goodwill in the market. The various projects executed by the applicants have become landmark projects in Bangalore, Chennai and

other places in India. Even multinational companies, IT companies have purchased properties built by the applicants. The word PRESTIGE in the

building construction business is a symbolic of superior construction quality coupled with state of the art modern amenities provided at competitive

prices. The word PRESTIGE in the building construction business has thus become distinctive of and exclusively identified with the applicant and none

else. The word and name PRESTIGE has acquired a secondary meaning co-related with the applicant in so far it related to building construction and

real estate activities. The word PRESTIGE besides being a trade/service mark of applicant also occupies a leading, essential and prominent feature in

their corporate name.

4 . The applicant have spent considerable amount towards popularizing their trade mark/service mark and trading style PRESTIGE, through

advertisements in various media. The applicants have won many awards for excellent construction and architecture. Due to long and extensive use of

trade mark tremendous goodwill and reputation has accrued to the applicant on account of quality construction of and timely completion. In addition to

acquiring valuable common law rights in the trade mark, the applicant has also sought statutory protection in respect of their trade mark and have filed

applications for registration of their service marks before the Trade Marks Registry, which are duly registered. The applicants have also obtained

copyright registration under No. A-51400/91.

5 . In the year 1987-89 when the applicant commenced their business the turn over was just '.89,28,641 which increase to an excess of '.215 crores as

on date. The applicants have spent '.5 crores annually towards advertisement expenses.

6.

The applicant recently launched ""Prestige Shantiniketan"" an elegant and sprawling city scape all of 105 acres. This township features have huge

residential complex with 2839 apartments, a brand new forum mall, a 5 screen multiplex, a convention center, the well known Radisson Hotel and

Bangalore's First World Trade Centre. The applicants were able to sell the project in a short span of 7 to 10 days because of the PRESTIGE Brand

Image.

7.

The applicant and its group companies use the word PRESTIGE as a prominent and integral part of its corporate name ie. Prestige Estates Projects

(P) Ltd., Prestige Constructions, Prestige Leisure Resorts Pvt. Ltd. and Prestige Garden Constructions (P) Ltd. The applicants have become one of

the most renowned business houses in the City of Bangalore as well as in India in so far it relates to real estate and building construction activities are

concerned. Valuable common law right have accrued in the said trade mark which is exclusively associated with the applicant. Therefore, the

trademark / service mark / trading style viz. PRESTIGE / PRESTIGE GROUP / an PRESTIGE ESTATES is the property of applicant and no other

person can use a trade mark/service mark which is deceptively similar to the applicants trade mark PRESTIGE, PRESTIGE GROUP and PRESTIGE

ESTATES. The applicant were shocked learn in the third week of April 2005 that the respondent had got published an advertisement in the

Malayalam Manorama dated 27/04/2005 when an existing customer from Cochin had called on the Managing Director of the applicant to enquire

about the further details of the projects advertised bearing the same trade name PRESTIGE. On perusing through the same it is evident that the

respondents have slavishly and fraudulently copied the trade mark and trading style of the applicant by deliberately misspelling the same as

PRESTEEGE in the said advertisement. It appears that the respondent herein are recent entrants in the field of property developers. The applicants

had been in the business since the year 1986 using the trade mark PRESTIGE. The adoption of the impugned trade mark by the respondent in the

year 2005 is illegal and unauthorized. The applicants therefore initiated a civil suit before the City Civil Court, Bangalore seeking an order of the

injunction restraining the respondents from any manner using the trade mark PRESTEEGE in relation to their real estate and building construction and

obtained an order of ex-parte injunction on 13. 12.2005., which was confirmed by an order dated 20.04.2006 after hearing both the parties, against the

said order, the respondent herein has preferred an appeal before the Hon'ble High Court, Karnataka.

8 . During the pendency of the above suit, the respondent herein had clandestinely applied for registration of the impugned trade mark in Class 37 and

obtained the same on 26.03.2008.

9 . The applicant herein has filed this instant application for revocation on the following grounds:

a) The registration of the impugned trade mark under No. 1386891 in Class 37 is without any basis, lacks application of mind and opposed to the

provisions of the Act. b) The impugned mark is also the contravention of the provisions of the Section 11 of the Act.

c) The respondent is not the proprietor of the trade mark as per Section 18(1) of the Act.

d) The impugned mark is wrongly remaining in the register without sufficient cause.

e) The adoption is not bonafide and is dishonest.

f) The registration is obtained by suppressingly material facts.

g) The applicant is a person aggrieved as per Section 57 of the Act.

h) The registration is opposed to law under Section 11 of the Act.

i) In the light of the foregoing grounds, the impugned trade mark may be expunged from the register of trade marks.

1 0 . The respondent herein filed their counter statement raising the issue of maintainability of this application for rectification on the grounds that leave

of the Civil Court has not been obtained before initiating this rectification application. The respondent stated that they are engaged in the business of

construction as a partnership firm. They further submitted that they have been using the mark PRESTEEGE through their sister concern, M/s.

Presteege Textile Marketing and Manufacturing Merchants, for the last three decades. Their sister concern and the mark PRESTEEGE has been

associated with the famous textile company BOMBAY DYEING since the year 1976. The sister concern is the registered proprietor of the mark

PRESTEEGE and they have obtained registration in Class 24 which has been regularly renewed and is subsisting as on date.

11.

The rival trade marks are completely different deceptively and structurally. The respondent trade mark has been used for more than decades and

therefore applied for registration for goods falling under class 37 on 24.09.2005 claiming user since

15.

04.2005. The respondents have also registered with the Central Excise for payment of service tax and the same has been produced along with the

counter statement.

12.

This rectification application is barred by acquiescence and estoppel and is hit by the provisions of Section 33 and 34 of the Act. The applicants

being aware of our use and the application for registration had not opposed the same and have now file this rectification application for the reasons

best known to them.

13.

The respondents are carrying their business exclusively in the state of Kerala and at no point of time in the city of Bangalore and are not aware of

the applicants business which is only in Bangalore and nowhere in Kerala. The applicant trade marks is not well known. The respondents are the prior

user and there is no question of expunging the mark from the register. The respondent have been in business for a very long time and have established

immense recognition and reputation in the field of real estate, property developers and construction. The respondents trade mark has been registered

even before the applicant started their business by their sister concern. The respondent further stated that the business operations of the applicants

and respondents are in two different places where the question of confusion or deception does not arise. There is no scope of the customer to be

mislead into purchasing the goods of the other. In any case, the registration may be allowed to continue on the ground of honest and concurrent user.

14.

As regards the interim orders, the Hon'ble High Court of Karnataka in MFA No. 4954 of 2006 had stayed the order of the trial court in OS No.

17779 of 2005 dated 20. 04.2006.

15.

In view of the explanation given above, the grounds for revocation are untenable and the registration of the mark is valid and ought to continue on

the register.

16.

We have heard Shri. Harikrishna S. Holla, counsel for the applicant and Ms. Nidhi Shree B.V, counsel for the respondent on 9th August 2011.

17 . The learned counsel for the applicant submitted that applicants are using the trade mark ""PRESTIGE"" since the year 1986. The respondents filed

application for registration of the impugned trade mark on 22.09.2005 claiming user since 15.04.2005. The applicants had their business of construction

in Chennai, Bangalore and other parts of the country. By end of the year 2005, the applicant came to know that the respondents use of the trade mark

PRESTEEGE PROPERTY DEVELOPERS The applicants therefore file a civil suit and obtained injunction on 13.12.2005 which was confirmed on

20.04.2006 after hearing both the parties.

18.

The respondent's plea in the counter statement is that they adopted the trade mark in the year 1976 and had been using the same for textile goods.

The marks namely PRESTIGE and PRESTEEGE are totally different both phonetically an structurally was the defence of the respondent both the

pleas were denied by the applicant.

19.

The applicants further submitted that the use of the trade mark in textile goods will not be any use to prove their user for property development.

The mark is not distinctive of the respondent goods. The registration is in contravention of the provisions of Sections 9 & 11 of the Act. As per

Section 9(a) of the Act, by short term of use, the mark cannot be said to have acquired distinctiveness. The marks being identical for identical goods

there is every possibility of confusion being caused.

20.

The applicants counsel then relied on few judgments:

1998 PTC (18) 698 - Indian Shaving Products Ltd. & Anr. Vs. Gift Pack & Anr.

2000 PTC (260) High Court of Delhi - Punjab Tractors Limited Vs. Pramod Kumar Garg

2003 (26) PTC 567 (II) High Court of Allahabad - Mumtaz Ahmad and etc. Vs. Pakeeza Chemicals & Others

2005 (30) PTC 131 (Bom) - Franco Indian Research Pvt. Ltd. Vs. Unichem Laboratories Ltd.

2006 (33) PTC 694 (Mad) (DB) - Rajamani Fabrics & Anr. Vs. Mothi Textiles

2007 (35) PTC 876 (IPAB) - Prestige Housewares India Limited & Anr. Vs. GuptaLight House & Anr.

2007 (35) PTC 915 (IPAB) - Computer Sciences Corporation Vs. R. Thangaraj

2008 (37) PTC 373 (IPAB) - Ganesh Zarda Factory Vs. Kishore Zarda Factory Anr.

2008 (38) PTC 409 (Bom) (DB) - Mapra Laboratories Pvt. Ltd. Vs. Walter Business Pvt. Ltd. & 3 Others

2008 (38) PTC 691 (IPAB) - Orchid Chemical and Pharmaceuticals Ltd. Vs. United Biotech Pvt. Ltd. & Anr.

AIR 1980 Mad 56 - P.L. Anwas Basha Vs. M. Natarajan

21.

The learned counsel for the respondent submitted that the applicants have not proved confusion because of the registration. The onus is always on

the applicant for rectification to prove the same. The counsel also submitted that there has been a long delay in filing this application.

22.

The respondents relied on few judgments:

2010 (42) PTC 480 (Karn.) - Presteege Property Developers Vs. Prestige Estates Projects Pvt. Ltd.

2008 (37) PTC 413 (SC) - Khoday Distilleries Limited Vs. Scotch Whisky Association & Ors.

AIR 1971 SC 898 - National Bell Co. Vs. Metal Goods Mfg. Co.

2009 (40) PTC 428 (Mad) - Nakoda Dairy (P) Ltd. Vs. Kewal Chand Vinod Kumar & Ors.

2007 (35) PTC 905 (IPAB) - Candico (I) Limited Vs. Perfetti S.P.A. & Anr.

MANU/IC/5015/2007 - Golden Rubber Industries Vs. Tirumala Polymers

AIR 1971 All 157 - Ram Avtar Sharma and Others Vs. Chakradhar Saran Sharma and Others.

23.

In rejoinder the applicants counsel submitted that there was no delay in filing this application.

24.

We have heard and considered the arguments of both counsel. The applicants have established their user since the year 1986. This was observed

by the Karnataka High Court in another matter ie. 2002 (25) PTC 108 -M/s Prestige Avenues Limited Vs. Prestige Estate Projects Pvt. Limited and

the same was relied on by this Board in another matter - ORA/191/2008/TM/CH. Though the parties were not the same or it was not inter parties it

only supports the case of the applicant that they were in the business since the year 1986.

25.

The respondents had applied for registration of the trade mark in the year 2005 claiming user since the year 2005. They also claim to have adopted

and used the trade mark for textiles since the year 1976. The respondents are not clear in their statements. In one place they state that they are

associated with Bombay Dyeing the famous textile company since the year 1976. In another statement they state that Presteege textile marketing in

their sister concern and that they have registered the trade mark as of 1982. In such circumstances, when it is not established as to the relationship or

as to how they are connected, the respondents before us cannot claim to be proprietor of the trade mark ""Presteege"". No cogent evidence filed before

us to prove their adoption or use.

26.

When the marks and the services are identical, the possibility of confusion is certain. We then will have to consider the fact as to who is in the

market first. Here the marks are identical except for the spelling ie. Prestige Vs. Presteege. As regards confusion and deception, no doubt the service

is being made use of by the literate people but when its identical trade mark its clear that the public may be under the impression that its that of the

applicants construction who is in the business for long. Therefore there is every possibility of confusion being caused.

27.

In view of the above, we are of the opinion that the impugned trade mark is in contravention of the provisions of the Act and deserves to be

removed from the Register of Trade Marks. Accordingly, the rectification application is allowed with a direction to the Registrar to remove the trade

mark registered under No. 1386891 in Class 37. No order as to costs.