Nice House of Plastics v Hamidu Lubega (HCT-00-CC-CS 695 of 2006) [2007] UGCommC 58 (31 May 2007)

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.}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}} {\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \ql \li-187\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin-187\itap0\pararsid7671040 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\ul\insrsid6046788\charrsid7671040 \par }\pard \qc \li-187\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin-187\itap0\pararsid7671040 {\b\insrsid11041353\charrsid7671040 THE REPUBLIC OF UGANDA \par \par IN THE HIGH COURT OF UGANDA AT KAMPALA \par (COMMERCIAL COURT DIVISION) \par \par HCT-00-CC-CS-0695-2006 \par }\pard \qj \li-187\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin-187\itap0\pararsid7671040 {\b\insrsid11041353\charrsid7671040 \par NICE HOUSE OF PLASTICS LTD ::::}{\b\insrsid14697890\charrsid7671040 :::}{\b\insrsid11041353\charrsid7671040 :::::::::::::::: PLAINTIFF \par \par }\pard \qc \li-187\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin-187\itap0\pararsid7671040 {\b\insrsid11041353\charrsid7671040 VERSUS \par }\pard \qj \li-187\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin-187\itap0\pararsid7671040 {\b\insrsid11041353\charrsid7671040 \par HAMIDU LUBEGA :::::::::::::::::::}{\b\insrsid14697890\charrsid7671040 :::}{\b\insrsid11041353\charrsid7671040 :::::::::::::::::: DEFENDANT \par \par BEFORE:}{\b\insrsid14697890\charrsid7671040 }{\b\insrsid11041353\charrsid7671040 }{\b\ul\insrsid11041353\charrsid7671040 THE HONOURABLE MR. JUSTICE YOROKAMU BAMWINE \par \par J U D G M E N T: \par }{\b\insrsid11041353\charrsid7671040 \par }{\insrsid11041353\charrsid7671040 The plaintiff\rquote s claim against the defendant arises out of actions said to amount to infringement of the plaintiff\rquote s trade mark and passing off of the defendant\rquote s goo ds as goods of the plaintiff. The thrust of the plaintiff\rquote s case is that the defendant has imported and intends to sell and distribute/dispose of in Uganda tooth brushes bearing its registered trade marks namely \lquote NICE\rquote and \lquote NICE TOOTH BRUSH\rquote . \par \par The plaintiff tried to serve the defendant on the address indicated in the importation documents but failed. Court made an order f}{\insrsid14624288\charrsid7671040 or}{\insrsid11041353\charrsid7671040 substituted service but still the advertisement in the Monitor Newspaper of Wednesday December 27, 2006 elicited no response}{\insrsid15354011\charrsid7671040 from him. Judgment was accordingly entered against him on 23/2/2007 and the suit }{ \insrsid14624288\charrsid7671040 was }{\insrsid15354011\charrsid7671040 set down for formal proof under the provisions of 0.9 r. 8 of the Civil Procedure Rules. In view of that judgment, the issue as to whether he has imported and intends to sell an d distribute/dispose of the goods, the subject matter herein, was decided by Court upon the defendant\rquote s failure to file a defence. Herein, I have to decide whether the plaintiff is entitled to the reliefs sought.}{\insrsid11041353\charrsid7671040

\par }{\insrsid15354011\charrsid7671040 \par The first relief sought herein is a permanent injunction restraining the defendant from use and/or continued use of the word/mark \lquote NICE\rquote along with the shape and design of a tooth brush \lquote NICE TOOTH BRUSH\rquote and the name of the plaintiff, \lquote NICE HOUSE OF PLASTICS\rquote . \par }{\insrsid14776739\charrsid7671040 \par In matters of intellectual propert y, a trade mark is a word, phrase, symbol, product feature, or any combination of these that distinguishes in commerce the goods or services of its owner from those of others. A trade mark, therefore, is an indicator of source. It does not tell what the goods or services are, but where they come from. In the instant case, PW1 Sarah Walusimbi, the Company Secretary of the plaintiff, testified that the plaintiff company owns intellectual property which includes the registered trademarks \lquote NICE \rquote and \lquote NICE TOOTH BRUSH\rquote . That the aforesaid trade marks were registered in the names of NICE HOUSE OF PLASTICS LIMITED on 21/7/2005 for tooth brushes and packets of tooth brushes as Nos. 27492 and 27487 and for goods in class 21 and class 16 retrospectively. This evi dence has been confirmed by PW2 Mercy Kyomugasho Kentaro Ndyahikayo, an Advocate, State Attorney and Assistant Registrar of Trade marks in Uganda.}{\insrsid16406745\charrsid7671040 The certificates of registration have been exhibited in Court. In these circumstances, Court is satisfied that the plaintiff is the owner of the trademarks \lquote NICE\rquote and \lquote NICE TOOTH BRUSH\rquote in Uganda.}{ \insrsid14776739\charrsid7671040 \par }{\insrsid9054449\charrsid7671040 As to whether the defendant\rquote s importation of the 25 cartons, the subject matter of this suit, amounts to an infringement of the plaintiff\rquote s trademarks, a trademark in fringement plaintiff must show a valid, protectable trademark in which he has rights}{\insrsid2241428\charrsid7671040 prior to those of the defendant. The plaintiff herein has through the evidence of PW1 and PW2 shown that the trademarks which are the subject of this suit have not been t he subject of any assignment, registered user or third party rights. The test of infringement is likelihood of confusion. Likelihood of confusion is the probability that a reasonable consumer in the relevant market will be confused or deceived, and will believe that the }{\insrsid15870923\charrsid7671040 impugned }{\insrsid2241428\charrsid7671040 goods or services come from, or the sponsored or endorsed by the protected user or that the two}{\insrsid15356430\charrsid7671040 users are affiliated. Infringement is thus analogous to the tort of fraud.}{\insrsid9054449\charrsid7671040 \par }{\insrsid15356430\charrsid7671040 \par In the instant}{\insrsid5060825\charrsid7671040 case, from the evidence of PW1 Ms Walusimbi, the plaintiff learnt of the existence of the impugned goods from the officials of the Uganda National Bureau of Standards, UNBS. These officials intercepted}{ \insrsid9052860\charrsid7671040 a consignment of 25 cartons of tooth brushes bearing the plaintiff\rquote s trade marks. There is evi dence that the goods were imported into the country by the defendant. The interception was at Busia Customs Boarder point. There is }{\insrsid15608656\charrsid7671040 no evidence of any circulation of such goods in the country prior to }{ \insrsid16012204\charrsid7671040 the importation of }{\insrsid15608656\charrsid7671040 this particular consignment. I have seen the sample which PW1 Ms Walusimbi managed to procure from UNBS. The packaging is stunningly similar to that of the plaintiff} {\insrsid16012204\charrsid7671040 : same get-up and almost same everything}{\insrsid15608656\charrsid7671040 . It has been submitted that }{\insrsid1462169\charrsid7671040 a registered proprietor of a trade mark acquires excl usive rights to deal with the trade mark in respect of which the registration has been done. I agree with this submission. Any person who uses the trade mark without the consent of the registered proprietor infringes the trade mark. Court is satisfied that the defendant herein has infringed the plaintiff\rquote s trade mark.}{\insrsid15356430\charrsid7671040 \par }{\insrsid1462169\charrsid7671040 \par As to whether or not the plaintiff has made out a case of passing off, Court is of the view that a cause of action for passing off is a form of intellectual property enforcement against th e unauthorized use of a mark which is considered to be similar to another}{\insrsid3609908\charrsid7671040 party\rquote s registered or unregistered trade marks, particularly where the action for trademark infringement based on a registered trade mark is unlikely to be successful (due to the dif ferences between the registered trade mark and the unregistered mark). It is a common law tort which can be used}{\insrsid7633283\charrsid7671040 to enforce unregistered trade marks.}{\insrsid1462169\charrsid7671040 \par }{\insrsid7633283\charrsid7671040 \par The instant case is for enforcement of registered trade marks. Furthermore, going by the authorities, five characteristics which must be present in order to create a valid cause of action for passing off are: \par (1)\tab a misrepresentation; \par }{\insrsid9633870\charrsid7671040 (2)\tab made by a trader in the course of trade, \par }\pard \qj \fi-900\li713\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin713\itap0\pararsid7671040 {\insrsid9633870\charrsid7671040 (3)\tab to prospective customers of his or ultimate consumers of goods or services supplied by him;

\par (4)\tab which is calculated to injure the business or good will of the trader (in the sense that it is a reasonably foreseeable consequence), and \par (5)\tab which causes}{\insrsid11995935\charrsid7671040 actual damage to a business or good will of the trader by whom the action is brought or will probably do so.}{\insrsid9633870\charrsid7671040 \par }\pard \qj \li-187\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin-187\itap0\pararsid7671040 {\insrsid4608315\charrsid7671040 See: (1}{\insrsid7671040\charrsid7671040 ) Spalding}{\b\ul\insrsid4608315\charrsid7671040 (AG) & Bros \endash Vs- AW Gamage Ltd & Anor (1915) \par }{\b\insrsid2831660\charrsid7671040 32 RPC 273, HL \par }\pard \qj \fi-720\li-187\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin-187\itap0\pararsid7671040 {\insrsid4608315\charrsid7671040 \tab }{\insrsid2831660\charrsid7671040 \tab }{\insrsid4608315\charrsid7671040 (2)}{ \insrsid2831660\charrsid7671040 }{\b\ul\insrsid4608315\charrsid7671040 Reckitt & Coleman Ltd \endash Vs- Borden Inc. [1990] 1 WLR 491.}{\insrsid4608315\charrsid7671040 \par }\pard \qj \li-187\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin-187\itap0\pararsid7671040 {\insrsid15335441\charrsid7671040 \par In the instant case, it is very clear to me that the defendant\rquote s act of importing the goods in question amounted to an infringement of the plaintiff\rquote s trade marks. The possibility of the infringement based on a registered trade mark being unlikely to succeed does not, therefore, arise. \par \par From the record, the plaintiff }{\insrsid16012204\charrsid7671040 did not bother to lead}{\insrsid15335441\charrsid7671040 evidence establishing a good will or reputation of its product. It has not even demonstrated a misrepresentation by the defendant to the public, in the sense that there is no evidence on record of any circulation of similar }{ \insrsid5322520\charrsid7671040 impugned}{\insrsid15335441\charrsid7671040 goods to the public prior to the interception of the }{\insrsid5322520\charrsid7671040 c}{\insrsid15335441\charrsid7671040 onsignment }{\insrsid5322520\charrsid7671040 in question }{\insrsid15335441\charrsid7671040 by }{\insrsid618046\charrsid7671040 customs}{\insrsid15335441\charrsid7671040 officials. While the intention of the defendant may }{\insrsid14698910\charrsid7671040 indeed }{ \insrsid15335441\charrsid7671040 have been to pass o}{\insrsid5322520\charrsid7671040 f}{\insrsid15335441\charrsid7671040 f his goods as those of the plaintiff, }{\insrsid5322520\charrsid7671040 the incomplete nature of the attempt leads the Court}{ \insrsid15335441\charrsid7671040 to the view that a case of passing off has not been sufficiently made out. I so find. \par \par As to whether the plaintiff is entitled to the reliefs sought, the plaintiff has prayed for a permanent injunction restraining the defendant from use and/or continued use of the word/mark \lquote NICE\rquote along with the shape and design of a tooth brush \lquote NICE TOOTH BRUSH\rquote and the name of the plaintiff, \lquote NICE HOUSE OF PLASTICS\rquote . It has also prayed for a permanent injunction restraining the defendant from the continued inf ringement of the plaintiff\rquote s trade marks \lquote NICE\rquote and \lquote NICE TOOTH BRUSH\rquote .}{\insrsid3880868\charrsid7671040 }{\insrsid15335441\charrsid7671040 \par }{\insrsid14698910\charrsid7671040 \par }{\insrsid3880868\charrsid7671040 The plaintiff further prays for an order that the defendant delivers up to the plaintiff all the infringing tooth brushes and other material relating to the above mentioned trade marks, and its product get-up. \par }{\insrsid5655146\charrsid7671040 \par From the evidence of PW3 Kobel Linda, an inspector with UNBS}{\insrsid684662\charrsid7671040 , the tooth brushes are not genuine. They were analysed and they failed the test. In my view, a trade mark owner who successfully shows likelihood of confusion is entitled to both inju}{\insrsid10254834\charrsid7671040 n}{\insrsid684662\charrsid7671040 ctive}{\insrsid5253818\charrsid7671040 relief and money damages from the infringer. In view of my findings above, the plaintiff is entitled to the above three reliefs. I grant them. The infringing tooth brushes and product get-up in which the defendant\rquote s toothbrush es are packed shall be delivered up to the plaintiff for destruction under the supervision of officials of Uganda Revenue Authority (URA) and Uganda National Bureau of Standards (UNBS). The plaintiff also prays for general damages for the defendant \rquote s infringement of its}{\insrsid14841786\charrsid7671040 trade marks and passing off, the costs of the suit and such other remedies as this Court may deem fit and proper in the circumstances. }{\insrsid5655146\charrsid7671040 \par }{\insrsid14841786\charrsid7671040 \par I have already disallowed the claim for passing off. As regards general damages, counsel has not suggested to Court any figure he would consider to be appropriate for the defendant\rquote s infringement of its trade marks. This Court is of course cutely aware that damages are intended as compensation for the plaintiff\rquote s loss and not as punishment to the defendant. Bearing in mind the }{\insrsid13703846\charrsid7671040 defendant \rquote s unsuccessful attempt to import into the country goods likely to harm the }{\insrsid14841786\charrsid7671040 plaintiff\rquote s }{\insrsid13703846\charrsid7671040 business}{\insrsid14841786\charrsid7671040 and doing the best I can, I deem a sum of Shs.}{\insrsid13703846\charrsid7671040 5}{\insrsid14841786\charrsid7671040 ,000,000= (}{\insrsid13703846\charrsid7671040 five}{\insrsid14841786\charrsid7671040 million only) adequate compensation to the plaintiff}{\insrsid618046\charrsid7671040 for the defendant\rquote s infringement of its trade marks. The award shall attract interest at Court rate from the date of judgment till payment in full. The plaintiff shall also be paid the costs of the suit.}{\insrsid14841786\charrsid7671040 \par }{\insrsid618046\charrsid7671040 \par I so order. \par \par Yorokamu Bamwine \par }{\b\insrsid618046\charrsid7671040 J U D G E \par }{\insrsid618046\charrsid7671040 01/06/2007 \par \par }{\b\insrsid618046\charrsid7671040 Order:}{\insrsid618046\charrsid7671040 The Registrar of this Court shall deliver this judgment on my behalf on the due date. \par \par Yorokamu Bamwine \par }{\b\insrsid618046\charrsid7671040 J U D G E \par }{\insrsid618046\charrsid7671040 01/06/2007 \par }{\insrsid15356430\charrsid7671040 \par }{\b\insrsid11041353\charrsid7671040 \par }}