Hungary based company M/s. Hell Energy Magyarorszag Kft. (Hell) is engaged in the manufacture and sale of non-alcoholic beverages and energy drinks. Hell is the registered proprietor of the trademark “HELL” which was adopted in 2006 bearing international registration no. 933068 in Class 32 for ‘non-alcoholic beverages and energy drinks’ in countries like Denmark, Estonia, Finland, Great Britain, Georgia, Germany, Ireland, Lithuania, Sweden, Serbia, Turkey and Uzbekistan. The mark ‘HELL’ was registered in India in Class 32 since 2017 in respect of energy drinks.
Source – Judgement
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Hell was aggrieved when it found out that that Shri Brahm Shakti Prince Beverages Pvt Ltd was using the marks ‘HELLxxx’ and ‘HALL ENERGY DRINKS’ for identical products i.e. energy drinks, soft drinks, and aerated drinks.
Consequently, Hell filed a suit in the Delhi High Court for trademark infringement. In the said suit, the Court had granted an ex parte ad interim order of injunction, in favour of Hell and also appointed Two Local Commissioners who seized large amounts of infringing products from the premises of Shri Brahm Shakti Prince Beverages Pvt Ltd. The parties had, thereafter, settled their disputes under the aegis of the Delhi High Court Mediation and Conciliation Centre and had entered into a settlement in September, 2021 which clearly recorded that the Defendants had acknowledged Hell’s rights in the marks ‘HELL’, ‘HELL ENERGY’ and variants thereof. It was also confirmed and undertaken by Shri Brahm Shakti Prince Beverages Pvt Ltd. that they would not manufacture, sell or advertise products under the impugned marks ‘HELLxxx’ as well as ‘HELL ENERGY DRINK’ and that in any case of any violation of the settlement agreement a penalty of INR 20 Lakhs would be paid to Hell. On the basis of the said settlement agreement, the Court decreed the suit in favour of Hell.
However, Hell found out Shri Brahm Shakti Prince Beverages Pvt Ltd. violating of the terms of settlement pursuant to the launch of another product under the mark “HILLxxx”. Hell approached the Delhi High Court again and filed a Contempt Petition.
Hence, the Court granted an ex parte injunction in favour of Hell and appointed a Local Commissioner to visit the premises of Shri Brahm Shakti Prince Beverages Pvt Ltd and seize the infringing goods. Thereafter, the Local Commissioner seized not only 13200 pieces and 11 rolls of Labels bearing ‘HILLxxx’” but also the manufacturing machinery of the Defendant.
Against this, Shri Brahm Shakti Prince Beverages Pvt Ltd. took defence of being semi-literate and proposed to change its mark from ‘HILLxxx’” to “PRINCE HILLxxx and then later to “PrinceB-Fastxxx”.
However, the Court being not convinced, permanently restrained Shri Brahm Shakti Prince Beverages Pvt Ltd. from using the mark “HILLxxx”, granted damages of INR 30 lakhs for the losses suffered by Hell. Additionally the Court held that, Shri Brahm Shakti Prince Beverages Pvt Ltd. would be liable to pay additional damages of INR 1 lakhs in case of violation of the Order.