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IN THE SUPERIOR COURT OF JUDICATURE

IN THE HIGH COURT

ACCRA

CORAM; JUSTICE HENRY A. KWOFIE

 

SUIT NO. RPC313/09

26 November 2010

 

OM SATNAM LTD

 

PLAINTIFF

VRS

 

 

ALHAJI SULEMAN NUHU ADDO

 

DEFENDANT

 

By a writ of Summons filed on 24th July 2009 the plaintiff claimed against the defendant as follows: a) An order of perpetual injunction restraining forthwith the defendant whether by himself, his agents, distributors, business associates or whosoever authorized or not authorized by them from infringing the trademark as well as packaging and get up" of plaintiff's product "Saikirpa Naphthalene Balls" b) An order that defendant's action of importing into and distributing an identical product under the name "Addo Sulley Naphthalene Balls" is an infringement of plaintiffs trademark and get up of their product. c) An order for the seizure and destruction of the injuring goods in the possession custody and control of the defendant and/or in the possession, custody or control of defendant's agent, distributor's agent , sellers, servants workers assigns or however authorized by him d) An order for verification upon oath that the defendant no longer has in his custody possession control any of the said product as packaged in its present form or made any order for the supply and delivery of more of such offensive products or to cause more such unfair competition by the manufacturer either now or at a future date e) General damages. The plaintiff's case is that sometime in 2006 it conducted a market survey in the Ghanaian market as a result of which it introduced into the Ghanaian market Saikirpa Naphthalene balls an aromatic insect repellant. This product was manufactured in China. They tested and registered the product with the Ghana Standards Board, the Registrar Generals Department and the Food and Drugs Board. The plaintiffs were subsequently issued with a certificate of registration of Trade Mark. According to the plaintiff they spent millions of Ghana cedis to promote the brand and the product to make same a household name. It is the case of the plaintiff that sometime In 2009 they noticed that the defendant had introduced an identical brand unto the market with the name ADDO SULLEY NAPHTALENE BALLS which had copied the get up, character, packaging of the plaintiff's product thereby creating confusion in the minds of the unsuspecting public into believing that their products are the plaintiffs or related to the plaintiffs which is clearly a " passing off' and an act of unfair-Competition to benefit from the goodwill and popularity of the plaintiff's brand. The plaintiff's case is that the defendant sold their product at a cheaper price. As a result of the defendants conduct the plaintiff lost millions of cedis and the defendants should thus be restrained from further distributing their product. The defendants admit that in June 2009 it introduced unto the Ghanaian market their product ADDO SULLEY NAPHTALENE BALLS but say that their product was different from the plaintiff's product in colour, weight and size in further denying plaintiff's claim the defendant states that the product in issue was the very first consignment imported into the country and that in any event the plaintiff has not suffered any loss. The following issues were set down as the issues for trial: 1) Whether or not the plaintiff created designed, packaged and introduced the product known as SAIK1RPA NAPHTALENE BALLS unto the Ghanaian market. 2) Whether or not the said product has been on the Ghanaian market since 2006 3) Whether or not the plaintiff has registered their trade mark and product with the Registrar Generals as number 37,468 under clause 5. 4) Whether or not the plaintiffs have registered with the Food and Drugs Board under the Food and Drugs Law 1992 (PNDC Law 305) 5) Whether or not the defendants have introduced a product called ADDOSULLEY NAPHTALENE BALLS unto the market 6) Whether or not defendants have copied the "get up", character, packaging and appearance of plaintiff's product. 7) Whether or not the defendants are passing off their product as that of the plaintiffs 8) Whether or not the conduct of the defendant is causing confusion in the minds of the general public leading them to mistake defendant's product as that of the plaintiffs. 9) Whether or not the plaintiff has suffered damages and loss of profit. 10) Whether or not the plaintiffs are entitled to their claim. The plaintiff company gave evidence through its Managing Director Suneel Murpir whilst the defendant gave evidence through Addo Sulley Abdul Razak the Attorney of the defendant. The plaintiff tendered in evidence Exhibit A,B,C and D. Exhibit A is the plaintiff’s product SAIKIRPA NAPHTALENE BALLS clearly with the design. Exhibit B is the letter from the Food and Drug Board approving and issuing the registration number FDB/C 06-12037 for a period of three (3) years. Exhibit C and C1 are letters from the Ghana Standard Board showing the result of tests and analysis conducted on samples of plaintiff's product whilst Exhibit D is the certificate of Registration of Trade Mark issued by the Registrar of Trade Marks. Exhibit D shows that the plaintiffs are the legal owners of the SAIKIRPA NAPHTALENE BALLS product. Exhibit D also shows the name of the product and the combination of colour, design, package and the get up" and the bar code. The evidence is clear that the plaintiff created designed, registered and introduced SAIKIRPA NAPHTALENE BALLS unto the Ghanaian market and I so find. The plaintiff also tendered in evidence Exhibit G which is the defendant's product ADDO SULLEY NAPHTALENE BALLS. The plaintiff's case is that the defendant was "passing off "his product Exhibit G as those of the plaintiff Exhibit A. In the case of RECKITT & COLEMAN PRODUCTS LTD VRS BORDEN (1990) RPC 341 H.L popularly called the "Jif Lemon case" the House of Lords per Lord Oliver put the matters a successful claimant in a passing off action must prove as follows at page 406 of the Report: First he must establish a goodwill or reputation attached to the goods or service which he supplies in the mind of the purchasing public by association with the identifying "get up"(Whether it consist simply of a brand name or a trade description or the individual features of labeling or packaging) under which his particular goods or services are offered to the public, such that the get-up is recognized by the public as distinctive specifically of the plaintiff's goods or service. Secondly he must demonstrate a misrepresentation by the defendant to the public (whether or not intentional) leading or likely to lead the public to believe that the goods or service offered by him are the goods or services of the plaintiff. Thirdly he must demonstrate that he suffers or in a quia timet action, that he is likely to suffer damages by reason of the erroneous belief engendered by the defendant's misrepresentation that the source of the defendant's goods or services is the same as the source of those offered by the plaintiff" At page 416 - 417 of the Report Lord Jauncey stated the principle thus: “ a man is not to sell his own goods under the pretence that they are the goods of another man. Accordingly a misrepresentation achieving such a result is actionable because it constitutes an invasion of proprietary rights vested in the plaintiff. However it is a prerequisite of any successful passing off action that the plaintiff's goods have acquired a reputation in the market and are known by distinguishing feature. It is also a prerequisite that the misrepresentation has deceived or is likely to deceive and that the plaintiff is likely to suffer damage by such deception. Mere confusion which does not lead to a sale is not sufficient. It is not essential that the defendant should misrepresent his goods as those of the plaintiff It is sufficient that he misrepresents his goods in such a way that it is a reasonably foreseeable consequence of the misrepresentation that the plaintiff's business or goodwill will be damaged" Thus the three (3) elements required to be proved in a passing off action are: i) Reputation or goodwill by the plaintiff in his goods/name/mark ii) Misrepresentation by the defendant leading to confusion/deception of the public and iii) Causing damage to the plaintiff. Often the presence of misrepresentation has to be inferred from the circumstances. In discussing how misrepresentation may be proved in a passing off action Lord Parker in SPALDING VRS GAMAGE (1915)32 RPC 273 stated at page 284 of the Report as follows: The basis of a passing-off action being a false representation by the defendant, it must be proved in each case as a fact that the false representation was made. It may of course have been made in express words but cases of express misrepresentation of this sort are rare. The more common case is where the representation is implied in the use or imitation of a mark, trade name or get up with which the goods of another are associated in the minds of the public or of a particular class of the public. In such cases the point to be decided is whether, having regard to all the circumstances of the case, the use by the defendant in connection with the goods of the mark, name or get-up in question impliedly represents such goods to be the goods of the plaintiff or the goods of the plaintiff of a particular class or quality, or as is sometimes put, Whether the defendant's use of such mark, name or get-up is calculated to deceive, it would however be impossible to enumerate or classify all the, possible ways in which a man may make the false representation relied on" With regard to proof that the product had acquired a reputation or goodwill, it is essential to the success of any claim in respect of passing off based on the use of a given mark, get-up or other indication of origin for the claimant to show that this had (at the relevant date) become by user in this country distinctive to some section of the public if not of the claimants goods or business alone at least of a defined class of goods or business to which those of the claimant belong. In "TURMIX" (OERTLI VRS BOWMAN) (1957) RPC 388 at 397 Jenkins L.J. explained proof of reputation as follows: It is of course essential to the success of any claim in respect of passing off based on the use of a given mark or get-up that the plaintiff should be able to show that the disputed mark or get-up has become by user in this country distinctive of the plaintiff's goods so that the use in relation to any goods of the kind dealt in by the plaintiff or that mark or get-up will be understood by the trade and the public in this country as meaning the goods are the plaintiff’s goods The gist of the action is that the plaintiff by using and making known the mark or get-up in relation to his goods and thus causing it to be associated or identified with those goods has acquired a quasi-proprietary right to the exclusive use of the mark or get¬up in relation to goods of that kind, which right is invaded by any person who by using the same or some deceptively similar mark or get-up in relation to goods not of the plaintiff's manufacture, induces customers to buy from him goods not of the plaintiffs manufacture as goods of the plaintiff's manufacture, thereby divert to himself orders intended for and rightfully belonging to the plaintiff" The overriding consideration, in judging extent of reputation is whether the claimant has built up a goodwill to the point where substantial damage will be caused to it by the acts he complains of. In relation to passing off goodwill has been stated to represent in connection with any business or business product the value of the attraction to customers which the name and reputation possess-see REUTER vrs MUHLENS (1953) 70 RPC 235 In his classic statement concerning goodwill in IRC VRS MULLERSMARGARINE (1901) AC 217 at 223, Lord Macnaghten stated Goodwill is the benefit and advantages of a good name, reputation and connection of business. It is the attractive force that brings in custom. It is the one thing which distinguishes an old established business from a new business at the first stand. The goodwill of a business must emanate from a particular source or centre. However widely extended or diffused its influence may be, goodwill is worth nothing unless it has power of attraction sufficient to bring Customers home to the source from which it emanates. Goodwill is composed of elements. It differs in its composition in different traders and in. different business in the same trade Having discussed the law relating to passing off what does the evidence indicate in this case? The evidence shows that the plaintiff has registered its product with the Registrar of Trade Marks as clearly shown by Exhibit D and Exhibit D clearly shows the combination of colours, labeling, design and characters and get up of the plaintiff's product. Although the defendant admitted being conversant with the law which required him to register his product with the Registrar of Trade Mark and Food and Drugs Board and other institutions, the defendant had not registered his following product with any of these instructions. The plaintiff had led evidence to show the extent to which he had gone in terms of compliance with the law, advertisement of the product in terms of radio and television adverts, posters etc with a view to making the SAIKIRPA NAPHTALENE BALLS a household name in the Ghanaian market. The plaintiff led evidence to show that its product had clearly acquired a reputation and had been associated with the packaging and get up peculiar to its product. A comparism of the plaintiff's product Exhibit A and the defendants product 'Exhibit G leaves no doubt in my mind that the defendant's product are designed and packaged and labeled in such a way that it is clearly almost impossible to distinguish it from that of the plaintiff. Indeed when the defendant's Attorney was extensively cross-examined by counsel for the plaintiff on 1st June 2010 in respect of the design, packaging and labelling of the two products this is what transpired: Q. Did you verify to find out if the design you had chosen was in conflict with any other distributors design? A. No Q. Did you take any steps to research the local market for designs respecting subsisting brands in the Ghanaian market? A. No Q. Exhibit G is the Addo Sulley naphthalene balls samples which was tendered by the plaintiffs? A. Yes Q. Take a look at It; at the top of that exhibit there is a blue line running horizontal from left to right to the end, is that correct? A. Yes Q. On top of that blue line; there are strips of vertical blue, red and white lines, is that correct? A. Yes Q. The inscription on it Addo Sulley is written in red ringed blue and white designs, is that correct? A. Yes Q. The word naphthalene balls is in italics blue, is that correct? A. Yes Q. And you have another inscription there Euro camphor, is that correct? A. Yes Q. And then down there, you have purity 99% UP? A. Yes Q. Then the same blue horizontal running from left to right is at the base of exhibit G, is that correct? A. Yes Q. And there is an inscription there manufactured for Addo Salley Enterprise? A. Yes Q. And then there is a repeat of the vertical red, white and blue design at the bottom? A. Yes Q. Look at the plaintiff's product which is exhibit A? A. Yes Q. At the very top is a horizontal blue strip that runs from the left to the right just as identical as exhibit G, your product? A. Yes but in the different shade of blue Q. On top of that one, there is a vertical red, blue and white design just like exhibit G which is your product? A. Yes Q. Then the name saikirpa is written in red just like your exhibit G? A. Yes Q. And the letters are ringed by blue design? A. Yes they are ringed in deep blue Q. And this is just like exhibit G which is written also in red and ringed by blue? A. By light blue Q. Then under the name is naphthalene balls italized just like exhibit G? A. Yes Q. Then you have the same name Euro camphor written under that the same way as exhibit G is designed? A. Yes but they are differently positioned. The first exhibit is differently positioned but it's the same writing and the same wording Q. The wording Euro camphor is written in the same colour red and ringed in white just as exhibit A. Exhibit A is written in red and ringed in white and exhibit G is also Written in red and ringed in white? A. Yes; the shade of red here is even briqhter in exhibit A than in exhibit G. The exhibit G word is dull. Q. And then you have under the base horizontal blue strip running from left to the right? A. Yes Q. And you have the writing there in exhibit A manufactured for O. M. Satnam? A. Yes Q. In your exhibit G, you have also written manufactured for your company? A. Yes Q. And the design is similar? A. It’s not the same Q. It’s written in white? A. Yes the writing is in whit Q. And it is the same as in exhibit G that is exhibit A is the same as in exhibit G? A. It's not the same like I said because of the shade of blue Q. And then vertically on the lower end, you have strips of blue, red and white, is that correct? A. Yes Q. And this is a similar design that you have in your exhibit G? A. Yes Q. The blue design is repeated on, the northern edge of the product and as well as the southern edge? A. Yes Q. There are two separate writings all ringed in red at the back, is that correct? A. Yes Q. And then you have the bar code also written there, is that correct? A. Yes there is a bar code Q. Look closely at the bar code in exhibit G which is your product. Can you read the bar code in exhibit G to the hearing of the court? A. Read out in court (4712781553519) Q. That is your product exhibit G, is that correct? A. Yes Q. Take a look at the plaintiff’s product that is the saikirpa naphthalene balls. What is the bar code that you see written there? A. 4712781553519 “ The defendants so initiated the packaging, design and labeling of his product Exhibit G to such an extent that the colours, the design, the packaging and even the bar code on the defendant's product was the same as those of the plaintiff. Indeed the defendant's product was obviously designed to deceive customers into thinking that the defendant's product were manufactured by the plaintiff. The defendant's product by its design, colour, size, labeling when compared to the plaintiff's product was clearly designed to cause confusion in the minds of the customers which is precisely what the defendant succeeded in doing. The evidence of the defendant that their product Exhibit G was different from the plaintiff's product Exhibit A is absolutely false. The defendant clearly sought and did succeed in misrepresenting his product Exhibit G as those of the plaintiff and I so find. The plaintiff led evidence to show that as a result of the defendant's introducing his offending product into the Ghanaian market-it (the plaintiff) was unable to sell as many of the goods as they otherwise would have and led to the plaintiff's sale dropping by as much as 50%. The defendant's disputes the fact that the introduction of his product into the market led to a loss of business for the plaintiff. The defendant said that the goods the subject of the dispute were the very first consignment he had brought into the country and that upon being notified that he had infringed the plaintiffs trade mark he replaced the packaging of about 400 cartons of the offending product. The defendant tendered Exhibit 3 as the new packaging he made for the product. But the defendant was aware that there was an order from the court on him to deliver all the offending products to the court. Inspite of the knowledge of the order of the court the defendant deliberately flouted the order by not just refusing to deliver the products to court but clandestinely sought to change the packaging and labelling of his offending product. The defendants conduct in deliberately flouting the court order was reprehensible. In Kerly's Law of Trade mark and Trade Name 13th edition (Sweet and Maxwell) the learned author stated in respect of damage at page 424 paragraph 14-30 as follows: “ Proof of damage is not in every case essential to enable the claimant to maintain the action, it depends on the circumstances If the claimant shows that the defendant is acting so as to pass-off goods as those of the claimant which are not the claimant's, it will generally be assumed that the claimant is thereby prevented from selling as many of the goods as he otherwise would while even if there is no direct loss of sale (as where the claimant and defendant are not in direct competition) the confusion between the two suppliers puts the claimant's goodwill at risk...." In this instance case there is no doubt that the product of the claimant and the defendant are in direct competition and the plaintiff led evidence to show that the defendant's conduct in passing-off his product as those of the plaintiff led to a 50% loss in sale and a substantial loss of money. The plaintiff's evidence shows that the company had expended a considerable amount of money on getting samples of the product from China to be tested by both the Food and Drug Board and the Ghana Standard Board. The Trade mark had also been registered and money had been expended on marketing, advertising etc to make the product a household name and to acquire its reputation and goodwill. It is this reputation and goodwill that the defendant exploited to his advantage and benefit. The defendant had by his conduct caused the plaintiff considerable damage and loss of profit. For this reason I will award the plaintiff a global sum of GH˘25,000 as damages. Before the trial began this court on an application by the plaintiff ordered the defendant to surrender all the offending products to the court pending the final determination of the court. Only 60 boxes were retrieved by the plaintiff whilst the defendant clandestinely made it impossible for the rest of the offending product to be recovered. It is hereby ordered that the offending products in the custody of the court be destroyed. I will therefore enter judgement in favour of the plaintiff in terms of relief a), b), c). I will thus award the plaintiff general damages which as already indicated is in the sum of GH˘25,000. Cost of GH˘10,000 against the defendant. COUNSEL GEORGE ANKOMAH MENSAH FORIHE PLAINTIFF CHRISTOPH KOKA FOR THE DEFENDANT

 

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