Supreme Court Stamps Down On Forum Shopping In Trademark Matters: An Alternative view

Introduction

The Indian Trade Mark and Copyright Acts have long carried provisions to safeguard rights of brand owners and copyright holders by allowing them to file a suit for infringement at a place where they reside or carry on business or voluntarily work for gain. This is a significant departure from the norm that a suit may be filed where the defendant resides or carries on business or where the cause of action arises.

Over the years, numerous brand owners have taken advantage of this safeguarding provision to bring suits where they reside or carry on business and the legislators’ intent in drafting this provision has been vindicated. However, many brand owners have used this provision to engage in what has come to be known as ‘forum shopping’. It is no secret that the Delhi High Court is one of the most popular jurisdiction among brand owners to bring trade mark and copyright infringement suits. This is based on several factors, viz. the fact that judges at the Delhi High Court are IP savvy, the Delhi High Court has a track record of granting ex-parte orders in such suits, the lawyers in Delhi are known to be IP experts, etc.

The question that arises in this situation is whether brand owners choosing a particular forum by using a safeguarding provision for reasons other than convenience (the reason why the legislation was drafted in the first place) can be seen as overreaching the law or possibly even creating mischief? The Supreme Court seems to think so.

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