SC asks Delhi High Court to decide afresh on Philips case

NEW DELHI: The Supreme Court has asked the Delhi High Court to decide afresh on the trademark dispute over 'Philips' between the Dutch electronics firm Koninklijke Philips Electronics NV and Kunj Aluminium Pvt Ltd, saying that it passed orders without giving any reasons.

A bench of justices Markandey Katju and Gyan Sudha Mishra set aside the orders passed by the High Court saying that it gave the judgement in favour of the Dutch Multinational without giving any proper reason.

"In our opinion this was not the way to dispose of an appeal. The impugned order is too cryptic. There should have been at least a brief discussion of facts and some reasons", said the bench.

The apex court further observed the order was passed "without going into the merits of the controversy" and giving any reasons.

"Hence we set aside the impugned order and remand the matter to the Division Bench for a fresh hearing in accordance with law, expeditiously," the apex court said.

The dispute started after Kunj Aluminium was allowed to use 'Philips' as trademark for selling non-electric pressure cooker by the Registrar of Trade Marks on December 9, 1996.

The Registrar had dismissed the opposition filed by Philips Electronics NV and its Indian arm Philips India.

It was challenged by the electronic major before the Intellectual Property Appellate Board (IPAB), which set aside the registration of 'Philips' for use of pressure cooker.

Following this, the local firm moved the High Court contending that it was using 'Philips' as its trade mark for pressure cookers since 1982 and it has become distinct.

It also contended that the Dutch firm does not make non-electric pressure cookers and IPAB failed to consider it. However, a single member bench of Justice Sanjeev Khanna dismissed its petition.

This was challenged by the local manufacturer before the division bench of the high court, which also dismissed the petition in November 2009.

Then the local firm moved the Supreme Court, which set aside the order.

Philips is one of the largest consumer electronics companies in the world. In 2010, its sales were Euro 25.42 billion. The company employs 119,000 people in more than 60 countries.