In the case of New Balance Athletics, Inc. v. Pulkit Khubchandani, the Delhi High Court granted a permanent injunction and awarded costs and damages in favor of New Balance Athletics, Inc. (“New Balance”), a global footwear manufacturer. The suit concerned Pulkit Khubchandani’s, trading as Kiran Shoe Company (the defendant) unauthorized use of marks resembling New Balance’s registered trademarks, including “N Device” and “550,” on footwear.
New Balance, established in 1906, contended that its trademarks had acquired immense goodwill and reputation through decades of use and extensive marketing, both globally and in India. The defendant was found manufacturing and selling footwear bearing marks nearly identical to New Balance’s trademarks through various platforms, including e-commerce websites and social media. Evidence revealed that the defendant adopted these marks with the intent to boost sales by creating an association with New Balance’s products, which are priced higher.
The Court had earlier granted an ex-parte ad interim injunction on May 28, 2024, restraining the defendant from using the infringing marks. A Local Commissioner was appointed to execute a search and seizure operation at the defendant’s premises, resulting in the confiscation of a large quantity of counterfeit products. Despite the defendant’s undertaking to cease the infringing activities and destroy the counterfeit goods, the Court found that his actions were deliberate and mala fide, aimed at leveraging New Balance’s reputation.
The Court held that the defendant’s use of the infringing marks was likely to confuse consumers and dilute the distinctive character of New Balance’s trademarks. The defendant’s claim of ignorance was dismissed, and the Court emphasized that the adoption of the marks was neither bona fide nor honest.
In its final judgment, the Court decreed in favor of New Balance, granting a permanent injunction restraining the defendant from using the infringing marks or any deceptively similar marks. The defendant was directed to destroy the confiscated counterfeit goods in the presence of New Balance’s representative. Additionally, the Court awarded ₹5,00,000 in costs and ₹2,00,000 in damages to New Balance, to be paid within four months.
Citation: New Balance Athletics, Inc. v. Pulkit Khubchandani, CS(COMM) 452/2024 & I.A. 30633/2024 (H.C. Delhi Oct. 21, 2024). Available at: https://indiankanoon.org/doc/150681248/
Authored by Gaurav Mishra, BananaIP Counsels
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