Counterfeiting is a commercial evil which erodes brand value, amounts to duplicity with trusting consumers, and has serious repercussions on the fabric of the national economy, the Delhi High Court said on Monday while directing a businessman to pay Rs 5 lakh to luxury brand Louis Vuitton for selling its duplicate products in spite of judicial directions restraining him from doing so.
Justice C Hari Shankar said ramifications of counterfeiting extend far beyond the confines of a petty counterfeiter’s small shop and the court is required to send a deterrent message to those involved in such practices.
The judge clarified that if the defendant fails to pay the amount within a period of four weeks, he shall suffer incarceration in civil prison in Tihar Jail for a period of one week.
“Counterfeiting is an extremely serious matter, the ramifications of which extend far beyond the confines of the small shop of the petty counterfeiter. It is a commercial evil, which erodes brand value, amounts to duplicity with the trusting consumer, and, in the long run, has serious repercussions on the fabric of the national economy,” the court said.
“The court is, therefore, required to be economically and socially sensitised, and to send a deterrent message to others who indulge, or propose to indulge, in the practice of counterfeiting,” it added.
Following a lawsuit by Louis Vuitton Malletier, the high court had in September 2021 passed an interim order restraining several entities from manufacturing, warehousing, selling, among others, in any manner any goods bearing the registered trademarks “Louis Vuitton”, “LV” logo, or any similar trademark, amounting to an infringement of the plaintiff’s registered trademarks.
The defendant before the court acknowledged that he was selling LV branded belts, but apologised for acting in breach of its directions and said he was a paltry businessman who ran his establishment from a small rented shop.
The court, however, said a counterfeiter is not entitled to sympathy as he knowingly practices falsehood and deception with complete impunity.
“A counterfeiter abandons, completely, any right to equitable consideration by a court functioning within the confines of the rule of law… That the defendant chose to continue with his business of selling counterfeited LV branded goods, even after having been injuncted from doing so, augments his culpability. Apologies and entreaties to the Court, after having so acted, can hardly mitigate the misdemeanour,” stated the court.
“I am of the opinion that the interests of justice would best be subserved if, in the present case, the defendant is directed to pay, to the plaintiff, Rs 5 lakh within a period of four weeks from today, failing which the proprietor of Defendant 2, shall suffer incarceration in civil prison in Tihar Jail for a period of one week,” ordered the court.
The court also noted that articles bearing the Louis Vuitton/LV brand cater to the most affluent of society and the craze for owning an article bearing the brand spews imitators to duplicate such products.
