Punj Group fined for using 'Fedders' label in ACs

New Delhi, May 31 (UNI) The Delhi High Court today issued notice to the US-based Fedders North American (NA) on the petition challenging the order of single bench restraining Indian company Fedders Lloyd Corporation Ltd from using label 'Fedders' in its commercial ACs and refrigerators.

A division bench of Justice M K Sharma and Justice Hima Kohli served notice asking the US company to file its reply by Auust 24, the next date of hearing.

While imposing a fine of Rs 50,000, the single bench of Justice Madan B Lokur had restrained Fedders Lloyd Corporation Ltd, the commercial air-conditioner and refrigeration major in India, from cashing in on the international reputation of the US-based Fedders North American (NA).

Justice Lokur had directed the Fedders Lloyd Corporation, owned by the Punj Group, from infringing the Fedders NA's registered trademark 'Fedders' while selling air-conditioning machinery in the country and also from exporting such equipment bearing the label.

While affirming that trademark 'Fedders' was the exclusive property of Fedders NA, Justice Lokur said, ''No one can be allowed to ride piggyback on the name of another company and if one does so by infringing the trademark of another, it is but natural that the proprietor of the trademark will suffer injury to its name and reputation.'' The word 'Fedders' was completely foreign to Fedders Lloyd and it had adopted the name only after its predecessor Lloyd Electric and Engineering Company (LEECO) had tied up with Fedders NA.

''The continued use of the word would give the general public an impression that it continued to have a tie up with the foreign company even though both are at loggerheads and have been so for the last over 30 years," Justice Lokur stated in the judgement.

However, the Judge said that Since'' commercial interests of the parties are involved and some adjustments may have to be made by the affected parties, this order will take effect from a date six months from today and in any case not later than 31st December, 2006." The dispute goes back to May 1956 when Fedders NA's predecessor-in-interest Fedders-Quigan Corporation had granted sole and exclusive right and license to LEECO, a co-partnership firm, to assemble, manufacture and sell room ACs under 'Fedders' for a period of five years.

UNI PAT VD PM1930