Delhi HC restrains Sadar Bazar Trader from manufacturing, selling counterfeit products under ‘WOODLAND’ mark

Justice Prathiba M. Singh of the Delhi High Court has restrained a Sadar Bazar Trader from manufacturing and selling counterfeit products under the ‘WOODLAND’ mark owned by Aero Club.

The single-judge bench was hearing a suit filed by the Aero Club seeking permanent injunction restraining the infringement of trademark and copyright and other relief. The Aero club claims ownership of the mark "WOODLAND" and its variants, which are used on belts and wallets manufactured, marketed, and sold by it.

The plaintiff’s case was that two traders, M/s. Bhawna Belt Co. and M/s. Gun Gun Belt House- a wholesaler of belts and wallets located in Sadar Bazar, Delhi, were engaged in selling counterfeit products under its mark ‘WOODLAND’.

On December 2021, the court granted, an “Ex-parte ad interim injunction in favor of the plaintiff and against the two Sadar Bazar traders, restraining them from manufacturing, offering for sale, selling, advertising, directly or indirectly dealing in, in any manner bearing the registered trademarks Woodland (word mark), the ‘Tree Device’ and the ‘Woodland Label’ or any similar trademark amounting to an infringement of plaintiff‟s registered trademarks, as also passing off of their goods as emanating from the plaintiff.”

The court vide order dated March 29, 2022, referred the plaintiff and the second trader i.e. defendant No. 2, Gun Gun Belt House to mediation under the Delhi High Court Mediation and Conciliation Centre. As per the settlement agreement dated September 20, 2022, the parties resolved the dispute and the trader acknowledged the rights and ownership of the Plaintiff in the impugned marks. The trader was also willing to accept a permanent injunction prohibiting the use of the contested marks, as well as the Plaintiff's original artistic work.

The settlement agreement also stated that all products bearing the contested marks that were seized by the Local Commissioner were turned over to the Plaintiff and Rs. 70,000 as damages in the form of a demand draft (DD) were encashed to the plaintiff.

After the grant of ex-parte ad interim injunction order in December 2021, a local Commissioner was appointed to visit the first trader i.e. defendant no.1 Bhawna Belt Co’s premises. During the visit, the commissioner revealed that 34 products bearing Plaintiff's mark "WOODLAND" were seized.

Despite having full knowledge of the present suit proceedings, the court noted that the first trader had not appeared before it in the matter. Thus, referring to the report of the local commissioner the court proceeded ex-parte against the first trader and opined that a permanent injunction is liable to be granted against the first trader.

Accordingly, the court granted a permanent injunction in favor of Aero Club, a proprietor of the ‘WOODLAND’ mark and its variants, marked and sold by them, against the first wholesaler trader based in Sadar Bazar restraining it from manufacturing, selling, offering for sale any products under the word mark ‘WOODLAND’, the ‘WOODLAND label’, the ‘WOODLAND’ tree device mark, or any other mark which is deceptively/confusingly similar to the Plaintiff's mark.

Furthermore, the court ordered the first trader to pay the plaintiff Rs. 5 lakhs within three months for the rendition of accounts and damages caused.

Case Title: Aero Club v. Bhawna Trading Co. & Anr.