Royal Stag v. Royal Champ: Delhi HC Decrees Alcohol Brand Seagram's Trademark Infringement Suit, Awards ₹20 Lakhs Damages

Ruling in favour of Seagram's alcohol brand, the Delhi High Court has awarded Rs. 20 lakhs damages and cost in its favour in a suit alleging trademark infringement in respect of Royal Stag whiskey by a company manufacturing Royal Champ whiskey.

Justice Navin Chawla permanently restrained Gwalior Distilleries Private Limited, engaged in sale of Royal Champ whiskey observing that the impugned label was a "colourable and slavish imitation" of ROYAL STAG label.

The Court also said that the same amounted to copyright infringement under sec. 51 read with sec. 55 of the Copyright Act.

"In the present case, the adoption by the defendant of the trade marks ROYAL CHAMP and the deceptively-similar logo to the SEAGRAM logo of the plaintiffs was clearly intended to deceive the unwary consumer and to ride on the reputation and goodwill of the plaintiffs. As held herein above, the same was intended to cause dilution of the marks of the plaintiffs," the Court observed.

It added "The defendant shall also pay to the plaintiff a sum of Rs. 20 Lakh as damages and costs of the suit."

It was the plaintiff's case that ROYAL STAG whiskey is manufactured and marketed by Seagram's brand since the year 1995. It was added that registration for the trade mark ROYAL STAG was obtained internationally as well as in India.

The plaintiffs claimed that the defendant was manufacturing, bottling and selling whiskey bearing the trademark ROYAL CHAMP and under a deceptively-similar label to that of ROYAL STAG label. It was also argued that the defendant was also found to be using bottles embossed with the SEAGRAM Marks.

Noting that the plaintiffs were the registered proprietors of the marks ROYAL STAG and SEAGRAM, the Court observed that the defendant was using the mark ROYAL CHAMP along with the logo which was deceptively similar to the SEAGRAM Marks.

"In the present case, the goods of the plaintiffs and defendant are identical, that is whiskey. The mark of the defendant is deceptively similar to that of the plaintiffs. The test to be applied for judging the claim of infringement and passing off is of an unwary consumer with average intelligence and imperfect recollection," the Court said.

It added,

"Applying the above test, it is seen that mere use of the word 'CHAMP' instead of 'STAG' is not sufficient to distinguish the two marks, especially when combined with the overall get up of the label. The goods are sold over the counter and an unwary consumer is likely to confuse one for the other."

Case Title: AUSTIN NICHOLS & CO INC & ANR v. GWALIOR DISTILLERIES PRIVATE LTD

Citation: 2022 LiveLaw (Del) 792

Click Here To Read Order