This Article is From Oct 23, 2023

Court Orders Agra-Based Company To Pay Rs 10 Lakh To PUMA Over Counterfeit Shoes

The High Court passed a decree of permanent injunction, restraining Mr Kumar from manufacturing and selling products bearing the 'PUMA' mark or any similar marks.

Court Orders Agra-Based Company To Pay Rs 10 Lakh To PUMA Over Counterfeit Shoes

'PUMA' was first used and registered as a mark by the brand in 1948. (Representative pic)

In a recent ruling, the Delhi High Court ordered an Agra-based shopkeeper to pay Rs 10 lakh damages to German sportswear brand PUMA for selling counterfeit shoes bearing the 'PUMA' mark and the 'leaping cat device'. The judgment was delivered by Justice Prathiba M. Singh on Friday. It came after PUMA filed a lawsuit last year seeking an injunction against Ashok Kumar trading as 'Kumkum Shoes', alleging that the latter was engaged in the manufacturing and sale of counterfeit "PUMA" products.

According to the official documents, PUMA, a globally recognised sporting brand, approached the Delhi High Court alleging that various counterfeit products under the mark 'PUMA' were being sold in Agra, Uttar Pradesh as well as Delhi and Haryana. Following this, the Court passed an interim in September 2022 restraining the defendant from selling or manufacturing any shoes with the PUMA trademark. A Local Commissioner was also appointed to further investigate the matter. 

However, as the defendant chose to stay away from the proceedings, the Court on Friday passed a decree of permanent injunction, restraining Mr Kumar from manufacturing and selling products bearing the 'PUMA' mark or any similar marks. The Court also ordered the defendant to deliver the seized goods to the German company for destruction.

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In the ruling, Justice Prathiba M Singh said that the defendant Ashok Kumar 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 piggyback on PUMA's goodwill and reputation. The Justice noted that as per the report of the Local Commissioner, 'Kumkum Shoes' has made a profit of nearly Rs 18 lakh to Rs 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 Rs 10 lakh and costs of Rs 2 lakh.

The High Court also added that the use of the 'PUMA' mark and logo by the defendant on inferior quality products would not only result in a 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," Justice Prathiba M Singh said. 

Notably, PUMA, which is a leading sporting brand today, was first used and registered as a mark by the brand in 1948. In India, the 'PUMA' mark and the 'leaping cat' device were registered by it in 1977 and 1986 respectively. The company markets and sells a wide range of sports-related products under the 'PUMA' brand, including footwear, apparel, and accessories.

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