The Court said that selling inferior quality PUMA shoes would lead to erosion of its brand equity and result in dilution of its trademarks.
In a recent ruling, the Delhi High Court has decreed that an Agra-based merchant must pay a substantial 10 lakh rupees in damages to PUMA for the sale of counterfeit shoes featuring the ‘PUMA’ and ‘leaping cat device’ trademarks.
Justice Prathiba M. Singh highlighted that the defendant, operating as ‘Kumkum Shoes’ under the name of Ashok Kumar, was fully aware of the esteemed brand recognition associated with the ‘PUMA’ mark. Despite this knowledge, the defendant knowingly engaged in the production and sale of counterfeit products bearing the ‘PUMA’ mark, essentially capitalizing on PUMA’s established goodwill and reputation.
The court also observed that the Local Commissioner’s report indicated that Kumkum Shoes had profited between 18 lakh and 19 lakh rupees from the sale of counterfeit PUMA shoes. Consequently, the court was inclined to rule in favor of PUMA, awarding damages of 10 lakh rupees and an additional 2 lakh rupees in costs.
Furthermore, the Court emphasized that the defendant’s use of the ‘PUMA’ mark and logo on subpar quality products not only infringed upon PUMA’s legal and customary rights but also posed a risk to the deterioration of PUMA’s brand equity and the dilution of its trademarks.
This infringement, if left unaddressed, could also harm consumer interests, as they might inadvertently purchase counterfeit goods at a premium, mistaking them for genuine PUMA products. Therefore, the sale of such counterfeit items was deemed against the public interest.
The legal proceedings began when PUMA filed a petition with the High Court last year, alleging the widespread sale of counterfeit ‘PUMA’ products in Agra, Uttar Pradesh, Delhi, and Haryana. In September 2022, the court issued an interim order that prohibited the defendant from manufacturing or selling shoes featuring the PUMA trademark.
Subsequently, a comprehensive report by the local commissioner exposed the defendant’s extensive counterfeit PUMA shoe operation. As the defendant opted not to participate in the proceedings, the court issued a permanent injunction decree.
Ranjan Narula and Shashi P. Ojha represented PUMA during the legal proceedings, while no legal representation appeared on behalf of the accused, Ashok Kumar.
