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IN THE SUPERIOR COURT OF JUDICATURE, IN THE HIGH COURT OF JUSTICE GHANA, (COMMERCIAL DIVISION) HELD IN ACCRA ON MONDAY THE 7TH DAY OF FEBRUARY 2011 BEFORE HIS LORDSHIP MR. JUSTICE I. O. TANKO AMADU

 

     SUIT NO. IPR/8/08

 

P. T. WINGS SURA & 2 ORS.                   -                                   PLAINTIFFS

 

VRS.

 

PEDRO COMPANY LTD.              -                                   DEFENDANT          

 


 

 

JUDGMENT

 

1.         The Plaintiffs claim against the Defendant the following reliefs.

 

“(i).      An injunction to restrain the Defendant from infringing registered trade mark No. 27,260.

 

(ii).       An order for delivery up, seizure and destruction of all infringing goods.

 

(iii).      Verification upon oath that the Defendant no longer has in its possession custody or control any articles so marked.

 

(iv).      General damages or in the alternative an account for profits for infringement of the registered trade mark, together with an order for payment of all sums found due to the Plaintiff with interest thereon”.

 

2.         PLAINTIFF’S CASE

The 1st and 2nd Plaintiffs claim to be registered entities under the laws of Indonesia and own a trade mark known as ‘SOKLIN’ registered in Ghana. The 3rd Plaintiff is a company registered under the laws of Ghana and states it is the sole agent and distributor of the SOKLIN products in Ghana a product they have marketed under the said mark with the approval of the Food and Drugs Board a regulating body under the laws of Ghana. The Plaintiffs allege that the Defendant has infringed the Plaintiffs mark aforesaid without due cause and have taken unfair advantage of the Plaintiffs to the detriment of Plaintiffs character and the reputation of Plaintiffs marks. In consequence of Defendant’s conduct, Plaintiffs claim they have suffered serious loss and damage because Defendant deliberately sells its infringing product at a price lower than Plaintiffs by reason of which the Plaintiffs claim they have suffered loss hence the reliefs claimed in this action.

 

3.         DEFENDANTS CASE

The Defendant denies Plaintiffs’ claim albeit evasively in paragraphs 1 and 3 of the statement of defence. The Defendant has pleaded the general issue and avers that Plaintiffs have not suffered any loss as alleged and are therefore not entitled to any remedy.

 

4.         ISSUES FOR TRIAL

At the close of the mandatory pretrial conference between the parties, the following issues were set down for trial.

 

“(i).      Whether or not the Defendant has ever used the Trade mark ‘Soklin’ in relation to soap and detergents in the course of its trade.

 

(ii).       Whether or not the Defendant had ever parked its substandard powdered detergent into ‘Soklin’ marked packets, sachets and cartons at its factory at Atafoa, Barekese Road, Kumasi.

 

(iii).      Whether or not the Defendant has distributed and sold soap and detergents bearing the mark ‘SOKLIN’ at retail outlets in and around Kumasi metropolis.

 

(iv).      Whether or not the Defendant has infringed the trade mark registered as No. 27260.

 

(v).       Whether or not the Plaintiffs are entitled to their claim”.

 

5.         DETERMINATION OF ISSUES BY THE COURT

The general position is that to enable a court decide a case one way or the other, each party to the suit must adduce evidence on the issues to be determined by the court to the standard prescribed by law. This position is buttressed by Section 14 of the Evidence Act 1975 (NRCD 323) which provides that:

 

“Except as otherwise provided by law, unless and until it is shifted a party has the burden of persuasion as to each fact the existence or non – existence of which is essential to the claim or defence he is asserting”

 

6.         The issues to be determined in this suit are the issues set down by the parties and issues of law arising from the pleadings of the parties and the evidence adduced. The law of proof is regulated by the provisions of the Evidence Act. The general position of which is captured in the maxim “He who asserts must prove” This position has been given judicial approval in several cases including ZABRAMA VRS. SEGBEDZI [1991] 2 GLR 221 at 224 where Kpegah J. A. (as he then was) stated as follows:

 

“……………a person who makes an averment or assertion, which is denied by his opponent, has a burden to establish that his averment or assertion is true. And he does not discharge this burden unless he leads admissible and credible evidence from which the fact or facts he asserts can properly and safely be inferred. The nature of each averment or assertion determines the degree and nature of the burden”.

 

7.         A Similar position was expressed by the Supreme Court in the case of ABABIO VRS. AKWASI III [1994 – 95] GBR Part II at page 774 where Aikins JSC stated in Holding (1) that:

 

“a party whose pleadings raised an issue essential to the success of a case assumed the burden of proving such issue. The burden only shifted to the Defendant when the Plaintiff has adduced evidence to establish the claims”

 

8.         In the context of the pleadings of the parties in this suit and the issues set down for determination, it is my view that the Plaintiff carries the burden of persuasion and of proof there being no counterclaim by the Defendant. This burden, the Plaintiff is required to discharge on the preponderance of the probabilities as provided for under sections 12(1) and 12(2) of Evidence Act (NRCD 323).

 

            PLAINTIFFS’ EVIDENCE

9.         How did the Plaintiffs discharge their burden in this suit Plaintiffs’ evidence per Madam Gifty Champion is that she caused the name of ‘Soklin’ to be registered with the Food and Drugs Board as a soap and was duly certified. The witness testified that she subsequently undertook a trade mark registration of the name and design ‘Soklin’ and was issued a certificate Exhibit ‘A’ in the name of 1st Plaintiff under No. 27260, in class No. 3 of the Trade Marks register. The certificate was later renewed as evidenced by Exhibits ‘B’ & ‘C’. The certificates issued by the Food and Drugs Board and renewals thereof were also tendered as Exhibits ‘D’, ‘F’ and ‘F1’.

 

10.       From the testimony of Plaintiffs’ first witness there is overwhelming evidence of due registration of trade mark of the name ‘SOKLIN’ by the 1st Plaintiff and authorisation by the Food and Drugs Board to deal in the said product in accordance with Section 11 of the Food and Drugs Act 1992 PNDC Law 305B as amended by the Food and Drugs (Amendment) Act 1997 Act 532.

 

11.       Under cross examination by the Defendant’s counsel no material fact supported by the testimony of the Plaintiffs’ first witness, was discredited, contradicted nor impeached. The only issue raised by the Defendant’s counsel’s cross examination is one bothering on the 3rd Plaintiff’s capacity to bring this action which was neither raised by the Defendant’s pleading nor was the attack on the non existence of the 1st and 2nd Plaintiff successfully established by cross – examination.

 

12.       The line of cross examination adopted by the Defendant’s counsel therefore has implications on the testimony of the Plaintiff’s 1st witness. There being no challenge to the testimony during cross examination the Defendant is deemed to have admitted the evidence. The principle of implied admission though with exceptions in certain circumstances will apply in this situation since Defendant’s counsel failed to challenge Madam Champion or her testimony. See the case of MANTEY & ORS. VRS. BOTWE [1989 – 90] GLR 179.

 

13.       As correctly cited by the Plaintiffs’ counsel in his written address, the Plaintiffs in the circumstances did not need to adduce any further evidence in proof of their ownership and due registration of the trade mark on the principle established by the famous case of FORI VRS. AYIREBI [1968] GLR 627 and QUAGRAINE VRS. ADAMS [1981] GLR 599 CA.

 

14.       In the premises therefore, I find that the 1st and 2nd Plaintiffs from the facts and evidence are the registered owners of the trade mark called ‘Soklin’ registered as No. 27260 same having been satisfactorily proved by the Plaintiff’s ‘PW1’ to the prescribed standard of law and the Defendant having failed to cross examine the ‘PW1’s testimony on the issue.

15.       I shall now deal with the issue whether or not the Defendant has ever used the trade mark ‘Soklin’ in relation to soap and detergents in the course of its trade.

 

16.       In further testimony ‘PW1’ testified that some powdery substances were discovered to have been parked into ‘Soklin’ sachets at the Defendant’s work place.

 

Upon examining Exhibits ‘M5’ ‘PW1’ identified a man who was a worker in the premises of the Defendant and further identified the packet of the powdery substances into ‘Soklin’ sachets and packages as captured in the pictorial Exhibits ‘M6’ to ‘M12’.

 

17.       ‘PW1’ further testified that the workmen in Defendant’s factory used ‘Soklin’ cellotape on the ‘Soklin’ boxes loaded with the Defendant’s powdery substance thereby presenting same to the general public as and of the Plaintiffs; conduct which constitutes infringement of Plaintiffs’ mark.

 

18.       Not only was this evidence overwhelming, the same was corroborated by one Prince Opoku Boateng, Defendant’s witness who testified under cross examination admitting that the Defendant was still in production and that the equipment as in Exhibit ‘M5’ was still in use.

 

When counsel for the Plaintiffs asked the question.

“Q.       I am putting it to you that on 4/7/2008 the sachets that came out of that machine were ‘Soklin’ sachets is that correct?

 

            Defendant’s witness answered

 

            A.        That is correct.

 

Q.        Look at Exhibit ‘S1’ which your accountant signed. It is dated 4/7/2008. That is correct?

 

            A.        That is correct ………………………………………

 

Q.        All these signed by your accountant were the goods collected from your factory. That is correct?

 

            A.        It is correct on the paper but I was not in by that time”.

 

19.       From my evaluation of the evidence adduced through cross examination of the Defendant’s witness, it is not in doubt that he corroborated the evidence of the Plaintiffs’ witness that the Defendant was infact using ‘Soklin’ sachets and boxes to load and market its powdery substance in order that the general public will receive Defendant’s product as if it were the Plaintiffs’.

 

20.       Counsel for the Plaintiffs has in his written address referred me to the decision of the Court of Appeal in the case of BANAHENE VRS. ADINKRA [1976] 1GLR 346 at page 350 where the court held that

 

“The rule is that where the evidence of one party on an issue in dispute is corroborated by witnesses of his opponent, while that of his opponent on the same issue stands uncorroborated even by his own witnesses, a court ought not accept the uncorroborated version in preference to the corroborated one unless for some good reason (which must appear on the face of the judgment) the court found the corroborated version incredible or impossible”

 

21.       I have not found from the entire evidence before me, any reason to declare the corroborated evidence of the Plaintiffs by the Defendant’s witness objectionable on any ground. The rule in BANAHENE VRS. ADINKRA supra having been cited with approval by the Supreme Court in the case of MANU VRS. NSIAH [2005 – 2006] SCGLR 25 at page 33, I shall follow and apply same in my finding which I hereby do and find that Defendant had used and applied the trade mark ‘Soklin’ in relation to the course of its trade in detergents and had parked its powdery substance in sachets and packets to present same as and of the Plaintiffs’ production. Save that no evidence was adduced as to the quality of the Defendant’s product in terms of its standard, I hereby determine issues 1 and 2 in favour of the Plaintiffs.

 

22.       The third issue for determination is whether or not the Defendant has distributed and sold soap and detergents bearing the mark ‘Soklin’ at retail outlets in and around Kumasi metropolis.

 

In his testimony ‘PW2’, one Yaw Kyei described himself as the business manager of the 3rd Plaintiff and testified that he knows the 1st and 2nd Plaintiffs as suppliers of the 3rd Plaintiff from Indonesia. His testimony is that 1st and 2nd Plaintiffs are suppliers of the products called ‘Soklin’, Santex and Popular a multipurpose cake soap.

 

23.       Under further examination in chief ‘PW2’ testified that sometime in 2008 ‘we’ representing the 3rd Plaintiff he works for, realised a downward trend in sales of their Soklin product whereupon a survey they conducted revealed that there were imitations of the ‘Soklin’ brand in the market. When the 3rd Plaintiff embarked upon a search for the source of the imitation products, it was discovered the Defendant’s company was involved. Consequently, Plaintiffs with the assistance of the police organised a swoop on the Defendant’s factory premises giving rise to the production of ‘M’ series Exhibits referred to in this judgment.

 

24.       In testifying on the dwindling sales of the 3rd Plaintiff arising from the Defendant’s conduct ‘PW2’ tendered Exhibits ‘P’, ‘P1’ – ‘P6’ as evidence of the customs declarations made by the 3rd Plaintiff over a period to substantiate the allegation that at the height of the Defendant’s infringement of the Plaintiffs’ trade mark there occasioned a corresponding fall in the sales volumes of the 3rd Plaintiff a development attributed by ‘PW2’ to the flooding of the market with the Defendant’s brand of ‘Soklin’ at cheaper prices presenting same to the general public as if it were the same product of the Plaintiffs.

 

25.       The evidence adduced from ‘PW2’ supported by Exhibits ‘P’, ‘P1’ – ‘P11’ is that while prior to the introduction of the Defendant’s product in the market, 3rd Plaintiff could clear and sell forty twenty foot containers and sometimes forty foot containers the volumes dwindled, over the months leading to an average of 45% drop in the 3rd Plaintiff’s volume of sales for a period of one year.

 

26.       Significantly there is nothing to say for the Defendant in terms of contradiction of the evidence of ‘PW2’ when Defendant’s counsel cross examined ‘PW2’. Counsel for the Defendant limited his cross examination to the failure of the ‘PW2’ to tender import documents for the period January to December 2009. When ‘PW2’ answered a question under cross examination that though 3rd Plaintiff made imports for the period he did not bring any documents to court to substantiate same, Defendant’s counsel ended cross examination. What it means is that not having cross examined ‘PW2’ on all the evidence adduced during examination in chief, the Defendant had admitted same by implication for failure to cross examine. MANTEY & ORS. VRS. BOTWE (supra) applied. It also means that Defendant has admitted without contradiction the documentary evidence contained in Exhibit ‘H’ which clearly shows that Defendant had on 3/6/2008 sold to one Twumasi its product in the trade mark name of the Plaintiffs as if it owned the said trade mark or that the consent of the Plaintiff’s had been duly obtained.

 

27.       For failure to cross – examine a witness on his testimony, Lord Halsbury said in BROWNE VRS. DUNN [1894] 6R. 67 at 258 HL.

“………To my mind nothing would be more absolutely unjust than not to cross examine witnesses upon evidence which they have given so as to give them notice and to give them an opportunity of explaining,………………… and not having given them such opportunity, to ask the jury afterwards to disbelieve what they said, although not one question has been directed to the accuracy of the facts they have deposed to”.

 

In the same case, at page 258, Lord Morris was even more emphatic He said:

 

“In this case, I am clearly of the opinion that the witnesses having given their testimony, and not having been cross examined having deposed to a state of facts which is quite reconcilable with the test of the case, it was impossible for the Plaintiff to ask the jury at the trial and it is impossible for him to ask any legal tribunal, to say that those witnesses are not to be credited”.

 

28.       In the context of the instant suit, not having cross examined ‘PW1’ and ‘PW2’ substantially the evidence they adduced during examination in chief, I have no reason to deprive their testimonies of credit same being consistent with the pleadings and attested to in my opinion impressively and convincingly. In the premises, I shall determine issue (iii) set down for determination in Plaintiff’s favour.

 

29.       The last issue set down follows from my earlier finding that the 1st and 2nd Plaintiffs are on the evidence the true registered owners of the ‘Soklin’ trade mark. The question whether or not Defendant has infringed the said trade mark is answerable from the evidence of all the witnesses in this suit.

 

30.       At the close of the Plaintiffs’ evidence the burden clearly shifted on the Defendant to adduce sufficient evidence on the basis of its pleading if the Plaintiffs should be held not entitled to judgment as prayed for. The nature of the Defendant’s burden has been more appropriately captured by Brobbey JSC in the case of In Re Ashalley Botwe Lands ADJETEY AGBOSU & ORS. VRS. KOTEY & ORS. [2003 – 2004] SCGLR 420 where he said:

                                                        

“The effect of sections 11(1) and 14 and similar sections in the Evidence Decree 1975 may be described as follows: A litigant who is a defendant in a civil case does not need to prove anything. The Plaintiff who took the Defendant to court has to prove what he claims he is entitled to from the Defendant. At the same time if the court has to make a determination of a fact or of an issue, and that determination depends on the evaluation of facts and evidence, the Defendant must realise that the determination cannot be made on nothing. If the Defendant desires the determination to be made in his favour, then he has a duty to help his own cause or case by adducing before the court such facts or evidence that will induce the determination in his favour.

 

The logical sequel to this is that if he leads no such facts or evidence, the court will be left with no choice but evaluate the entire case on the basis of the evidence before the court which may turn out to be only the evidence of the Plaintiff. If the court chooses to believe the only evidence on record, the Plaintiff may win and the Defendant may lose”.

 

31.       Nothing is more accurate in describing the position of the parties at the close of the evidence adduced at the trial as the above quote. I have found nothing useful in the evidence of Defendant’s witness which will effectively contradict Plaintiffs’ facts and evidence to sway a determination in the Defendant’s favour. Infact as I have earlier found in this judgment, the testimony of Defendant’s witness corroborated Plaintiffs’ case and nothing less than a determination of the issue that Defendant by its conduct infringed the trade mark registered as No. 27260 of the Plaintiffs’ ‘Soklin’ mark will ensure that justice has been done in this case and I accordingly so hold.

 

32.       Before I arrived at this conclusion let me state that I have examined the address of the Defendant’s counsel intended to persuade me to make a finding in Defendant’s favour. I am unable to do so because there is no useful legal argument to my mind persuasive to sway a decision against the Plaintiff. The only issue raised in the address is one of the capacity of the 3rd Plaintiff to bring this action in its name and that of the 1st and 2nd Plaintiffs. The issue is a complete departure from Defendant’s pleadings. Notwithstanding that, ‘PW1’ while under cross examination by Defendant’s counsel successfully established her relationship with the 1st and 2nd Plaintiffs and on whose authority 3rd Plaintiff commenced this action in their joint names and in its name.

 

33.       Indeed in opening the written address filed by its counsel on 30/3/10 counsel for the Defendant stated as follows:

 

My Lord 1st and 2nd Plaintiffs belong to a group of companies incorporated and operating under the laws of Indonesia and own the trade mark ‘SOKLIN’ registered in Ghana as number 27260 in class 3 in respect of soap detergent”.

 

34.       I must confess I am at a loss as to what Defendant’s counsel means by the Plaintiffs’ lack of capacity to bring this action not having raised same at pleadings and interlocutory stages but in the closing address where he had from the quotation above acknowledged the Plaintiffs’ capacity to sue. My view is that the issue of capacity raised by the Defendant is totally misconceived and unmeritorious as it is not supported by any fact, evidence or legal argument.

 

35.       I need not shop for any foreign authority to support my findings in this judgment. It is simply a case of infringement of the Plaintiffs’ trade mark pleaded and sufficiently proved by the evidence adduced at the trial of this suit. It is for this reason and all other reasons I have earlier set out that I find for the Plaintiffs and hereby enter judgment as endorsed as follows:

 

(i).        Perpetual injunction to restrain the Defendant from infringing registered trade mark No. 27260.

 

(ii).       I hereby grant an order for the destruction of all the materials seized from the Defendant in pursuance of the order of this Honourable Court as set out in the inventories dated 4/7/2008 under the supervision of the registrar of this court and officers of the Environmental Protection Agency and the Food and Drugs Board.

 

(iii).      An order that the Defendant shall deliver up for destruction all other infringing materials to the registrar of this court forthwith.

 

(iv).      The Defendant’s Managing Director shall depose to an affidavit verifying the fact that Defendant no longer has in its possession custody actual or constructive of any articles or material bearing the Plaintiffs’ trade mark.

 

(v).       Finally, the Plaintiffs have endorsed a relief for general damages or in the alternative an account for profits for infringement of the registered trade mark together with an order for payment of all sums found due to the Plaintiff with interest thereon.

 

36.       Since Plaintiffs endorsed relief (v) in the alternative, I shall grant general damages as prayed. While I agree with the submission of counsel for the Plaintiffs’ on the guidelines on computation of damages, I am guided by the position of Dr. Twum JSC in the case of DELMAS AGENCY GHANA LTD. VRS. FOOD DISTRIBUTORS INTERNATIONAL LTD. [2007 – 2008] SCGLR 748 Holding (3) where the learned jurist said in relation to general damages:

 

“Special damages is distinct from general damages. General damages is such as the law will presume to be the natural or probable consequence of the Defendant’s act. It arises by inference of the law and therefore need not be proved by evidence. The law implies general damage in every infringement of an absolute right. The catch is that only nominal damages are awarded. Where the Plaintiff has suffered a properly quantifiable loss, he must plead specifically his loss and prove it strictly. If he does not, he is not entitled to anything unless general damages as appropriate”

 

37.       But that statement of the law posits a general view in addressing claims for general damages. Each case has to be determined on the peculiar facts it presents and how the law applies to those facts. In Kerly’s Law of Trade Marks and Trade Names 9th Edition page 362 paragraph 714 the author stated as follows:

                       

“Proof of damage is not in every case essential to enable the Plaintiff to maintain his action; for if he shows that the Defendant is acting so as to pass off goods as those of the Plaintiff which are not Plaintiff’s it will generally be assumed that the Plaintiff is hereby prevented from selling as many goods as he otherwise would”.

 

In the premises, I shall award the Plaintiffs GH¢30,000.00 in general damages. The costs of this action are assessed at GH¢10,000.00 in favour of the Plaintiffs.

 

 

 

                                                                                                            (SGD.)

JUSTICE I. O. TANKO AMADU

JUSTICE OF THE HIGH COURT

 

 

 

BENSON NUTSUKPUI Esq.

(For Plaintiffs)

 

DR. KWAKU NSIAH

(For Defendant)

 

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