Adidas is engaged in the business of manufacturing and selling sportswear. Adidas AG (Adidas) and its Indian subsidiary approached the Tis Hazari District Court at Delhi seeking a permanent injunction against Kumar Garments to restrain it from infringing Adidas’s registered trademark ADIDAS and passing off its goods as those of Adidas.
It stated that its trademark "ADIDAS" was created in 1949 as a combination of the name of its founder Adi Dassler. Since it is the registered proprietor of the marks, it has the exclusive right to use the said trademark and logos with respect to its products. Adidas contended that Kumar Garments, a Karol Bagh (Delhi) based entity, was found selling counterfeit apparel bearing the mark "ADIDAS" and its logo. As per Adidas’s claim, the mark used by Kumar Garments is identical and/or confusingly or deceptively similar to the registered trademarks of Adidas and hence their use by Kumar Garments constituted trademark infringement and passing off. Adidas also stated that it had suffered irreparable losses due to the sale of these counterfeit products.
The Court imposed a cost of INR 20,000 upon Kumar Garments during the proceedings, however when Kumar Garments did not comply with the order, a further cost of INR 20,000 was imposed. It did not pay the costs or appear for the hearings, despite being given ample opportunities. Thus, the matter proceeded exparte.
The Court accepted Adidas’s plea of injunction as Kumar Garments merely filed a written statement but adduced no evidence in support of the same. Hence the Court restrained Kumar Garments from using the mark "ADIDAS" and its logo and/or other similar trademarks.
With respect to the reliefs of rendition of accounts or damages prayed for by Adidas, due to lack of documentary evidence such as invoices, bills, and the like, no observation was made by the Court.
However, relying upon Times Incorporated Vs. Lokesh Srivastava & Anywhere , the Court imposed punitive damages of INR 5,00,000 along with interest @ 12% per annum during the pendency of the suit till its realization along with costs of the suit.
Furthermore, the Court also directed Kumar Garments to hand over all the impugned finished products and unfinished materials bearing the impugned trademark/label or any other deceptively similar trademark/ label to Adidas for destruction and erasure.