Bombay High Court slaps ₹50 lakh fine on Premier Stationery for Fevicol trademark violation

The Bombay High Court has recently imposed fine of ₹50 lakh on Premier Stationery Industries Pvt. Ltd. and associated companies for breaching an earlier court order that protected the Fevicol MR trademark owned by Pidilite Industries [Pidilite Industries v. Premier Stationery Industries]..Pidilite Industries, the owner of the well-known Fevicol brand, initially sued a stationery company (which was later acquired by Premier Stationery). Pidilite accused the company of copying Fevicol’s distinctive packaging and branding of its glue bottles and guns. Subsequently, following a consent agreement where the company agreed not to infringe the trademark, the Court issued a permanent injunction in Pidilite's favor on July 13, 2017, prohibiting any use of similar packaging. Premier Stationery acquired the company later that year..Despite the injunction, Pidilite reported that Premier Stationery resumed using the infringing packaging in August 2020. This prompted Pidilite to seek contempt proceedings against the company.During the hearing, Premier Stationery argued that it was not bound by the earlier court orders because it had acquired the business after the initial ruling and that it was not bound by earlier consent orders. However, Justice RI Chagla rejected this claim, noting that the court's authority under contempt proceedings extends beyond the rights of parties involved in execution proceedings. The Court observed that Premier Stationery was indeed aware of the court's order, contrary to their claims..The Court not only imposed a substantial financial penalty but also criticized Premier Stationery for its lack of remorse and failure to comply with previous orders. “The Respondents have failed to offer any apology let alone an unconditional apology and which is evident from their lack of remorse or regret on their part for their wrongful acts and/or wilful disobedience of the Court's Orders. It is well settled that the Court ought not to allow its processes to be set at naught and/or breach of its Orders by parties such as the Respondents and strict action ought to be taken against the Respondents for their malafide conduct,” the Court stated.In addition to the monetary fine, Premier Stationery was asked to immediately cease using the infringing packaging and destroy any remaining products. Continued non-compliance could lead to further legal consequences including potential civil imprisonment, the single-judge cautioned. .Advocates Hiren Kamod, Nishad Nadkarni, Aasif Navodia, Khushboo Jhunjhunwala, Jaanvi Chopra and Rakshita Singh of Khaitan and Co. appeared for Pidilite.Advocates Aseem Naphade, Pooja Yadav, Sonali Bhosale, JV Bhosale and Akshay Dunde appeared for Premier Stationery.[Read Judgment]