LI Network
Published on: January 17, 2024 at 13:02 IST
In a legal victory for alcoholic beverages manufacturer “Officer’s Choice,” the Delhi High Court has issued a restraining order against a Karnataka-based manufacturer, prohibiting the sale of whiskey and other liquor products under the label “Peace Maker.”
The court described the manufacturer’s actions as “smart copying” and emphasized the need to prevent imitation in the competitive market.
Justice Prathiba M Singh noted the prima facie attempt at “smart copying” by the defendant, emphasizing the clear similarities between the labels.
The Court acknowledged the defendant’s efforts to highlight differences but concluded that the overall resemblance was too conspicuous to be disregarded.
However, the Court clarified that the injunction did not prevent the manufacturer from using the red and white color combination of the label in a manner that avoids confusion or imitation of the “OFFICERS CHOICE” label.
The Court also directed the manufacturer to submit an account of sales for the ‘PEACE MAKER’ whisky under the label through an affidavit, covering the period from launch to the present date.
Considering the nature of the products involved, the court granted the defendant 30 days to exhaust the existing stock, allowing its sale after an inventory is prepared in the presence of the plaintiff’s representative.
The legal dispute arose when Allied Blenders and Distillers Private Limited filed a suit against Hermes Distillery Private Limited, alleging that the latter’s product label closely resembled Officer’s Choice’s label.
In response, the defendant argued that Officer’s Choice had inconsistent labels over time. Justice Singh, however, observed that when the products of both companies are stacked together, consumers could easily presume that the Peace Maker’s product belongs to Officer’s Choice.
The Court highlighted the dimly lit setting of bar counters and liquor outlets, emphasizing the likelihood of confusion among ordinary consumers who may not discern the distinguishing features between the products.
Concluding that the labels were deceptively similar, the court stated that confusion regarding affiliation or sponsorship was a clear possibility.
The decision, in the case titled ALLIED BLENDERS @ DISTILLERS PRIVATE LIMITED v. HERMES DISTILLERY PRIVATE LIMITED, underscores the importance of preventing deceptive trade dress and imitation in the liquor industry.