Delhi HC imposes cost of Rs 87 lakh on Pure Play Sports in IP suit with Skechers

The Delhi High Court has imposed costs of almost Rs. 87 lakh on Pure Play Sports for manufacturing and distributing look-alikes of Skechers’ Go-walk 3 series range of shoes..“The memo of cost prepared by the registry on the basis of material available and has been checked by concerned Assistant Registrar/ Administrative Officer (Judicial). The calculation made by the office is accepted and cost of the suit are taxed at Rs. 86,98,173.05 p only.”, the order stated..The cost, imposed in favour of Skechers, includes the amount paid by the American footwear brand towards expenses incurred by it on litigation, local commissioner and court fees..The cost was awarded by Joint Registrar (Judicial) Raj Kumar Tripathi in a passing off suit initiated by Skechers USA Inc. and its affiliate entities against Pure Play Sports seeking a decree of permanent injunction and damages..Skechers had also alleged trademark dilution and unfair competition against Pure Play Sports..The suit was decreed in Skechers’ favour in a summary judgement by a single Judge Bench of Rajiv Sahai Endlaw vide an order dated May 15, 2018, which noted that,.“The plaintiffs are entitled to costs of the suit from the defendant herein.”.The case assumes importance on two accounts- first, a summary judgment was granted in favour of Skechers despite there being no application by the plaintiff for the same. The Court was of the opinion that it has the power to pass a decree in a suit summarily, if it is satisfied that nothing would come out of putting a party through the rigmarole of a trial along with costs..This was one of the few intellectual property cases in the Delhi High Court wherein a summary judgment was granted..Moreover, the enormity of the cost imposed on the defendant Pure Play Sport would act as an example to deter other infringers and counterfeiters as well..Secondly, for the first time, costs were awarded as per Chapter 23 of the Delhi High Court (Original Side) Rules, 2018 by undergoing the process of filing a bill of costs and presenting it before the taxing officer..As per the Rules, a cost is determined by the Taxing Officer (Joint Registrar), on filing of a bill of costs by the party concerned, which in this case, was Skechers. To arrive at the “actual cost”, the Taxing Officer has the power to appreciate the documentary evidence put forth by the party and entertain objections, if any, as well..Skechers was represented by Vijayendra Pratap Singh (Partner & Head-Litigation), Nandan Pendsey (Partner IPR), Anindita Roy Chowdhury (Partner Litigation) of AZB & Partners, along with Senior Associates at the law firm Abhimanyu Chopra and Vatsala Rai, and Associates Kirti Balasubramanian, Pradyumn Sharma and Aishwarya Modi..Pure Play was represented by Advocate Saurabh Jain. The cost was, however, imposed ex-parte..Read orders: