Indian Company directed to pay 15.86 lakhs to Cadbury for infringing its trademark 'Cadbury Gems'

Case: Mondelez India Foods Pvt Ltd and Anr v. Neeraj Food Products

The Delhi High Court recently directed Neeraj Food Products, an Indian company to pay nearly ₹16 lakh to Cadbury, a British confectionery firm for infringing its 'Cadbury Gems' trademark. Justice Prathiba M Singh observed it’s a brand known to everyone whether young or old. Moreover, Cadbury Gems is almost associated with everyone’s childhood. It is unique and the company owns the trademark 'Cadbury Gems' as well as the artistic character, 'Gems Bond'.

There is no question that the defendant has infringed on Cadbury’s trademark, the judge added, “…chocolates are not only sold in big retail stores but also, in roadside shacks, paan shops, Kirana stores, and stalls. Thus, there is an immense likelihood of confusion,” the order said.

BACKGROUND

A 2005 lawsuit by Cadbury (now Mondelez India Foods Pvt Ltd) sought a permanent injunction and damages against Neeraj Food Products for trademark infringement. The defendant was alleged to have used the marks 'James Bond' and 'Jamey Bond' on its packaging along with an image of chocolate buttons. The petitioner informed the court that there is a deceptive similarity between the marks and those of Cadbury's.

Despite the defendant's initial appearance, the suit later proceeded ex parte, and the defendant did not file any supporting documents, other than raw invoices dated 2001-2002.

HELD 

The HC held that as Gems products are usually consumed by children, the test in such a case is not absolute confusion.  Therefore, a comparison of the defendant’s product and Cadbury’s product leaves no doubt that the former is a complete knock-off of Gems. Moreover, the defendant infringed the plaintiff’s trademark, but it also constituted passing off, and hence, they are entitled to damages of ₹15.86 lakh within three months.