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Mercantile Law

Substantial Imitation and Passing Off

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 27-Sep-2023

Source: Indian Express

Why in News?

The Delhi High Court has sent summons to a digital platform known as 'People of Indian (POI)' in response to a copyright infringement lawsuit initiated by 'Humans of Bombay (HOB)'. POI shares narratives about common individuals in a manner closely resembling that of HOB.

  • The Delhi High Court gave the observations in the matter of Humans of Bombay Stories Pvt. Ltd. v. POI Social Media Pvt. Ltd. & Anr.

What is the Background of Humans of Bombay Stories Pvt. Ltd. v. POI Social Media Pvt. Ltd. & Anr. Case?

  • The HOB filed a suit before Delhi HC to direct POI to take down the work of HOB which is either used directly or indirectly.
  • HOB contented that POI has not only copied its storytelling style but also imitated the images shared and used by it.

What were the Court’s Observations?

  • Justice Pratibha Singh of Delhi HC listed the case observing that the case involves ‘copyright infringement’ and some images shared by POI were identical to images shared by HOB.

What is Copyright Infringement under Copyright Act, 1957?

  • About the Act:
    • The Copyright Act, 1957 governs copyright protection in India.
    • The act grants various exclusive rights to copyright holders, including the right to reproduce, distribute, perform, and adapt their creative works.
    • It aims to protect the intellectual property rights of creators and encourages the development and dissemination of creative works while balancing the interests of copyright holders and the public.
  • Infringement:
    • Copyright infringement under this act refers to the unauthorized use or reproduction of copyrighted material without the permission of the copyright owner.
    • Copyright owners have the exclusive right to reproduce the work, communicate it to the public, and adapt it. Any unauthorized exercise of these rights can be considered infringement.

When can a ‘Substantial Imitation’ be Considered as a Copyright Infringement?

  • The term "substantial imitation" implies that the copying is not just minimal or accidental.
  • Substantial imitation can be considered copyright infringement because it involves copying or reproducing a substantial or significant portion of a copyrighted work without the permission of the copyright owner.
  • When someone else copies a substantial part of a copyrighted work without authorization, they are essentially using the creative expression of the original author without permission, which violates the author's exclusive rights.
  • Copyright owners have the right to enforce their copyrights by taking legal action against those who engage in substantial imitation or other forms of infringement.
    • Remedies for copyright infringement can include damages, injunctive relief (preventing further infringement), and the recovery of content.

What is ‘Passing off’?

  • Passing off is a legal concept primarily related to trademark law, not copyright law.
  • It involves the unauthorized use of a trademark or a trade name in a way that misleads consumers into believing that the goods or services offered by one party are those of another party.
  • To establish a passing off claim, the following elements typically need to be proven:
    • The plaintiff has goodwill or reputation associated with their goods or services.
    • The defendant has engaged in some form of misrepresentation (intentional or unintentional) that creates confusion among consumers.
    • The misrepresentation has caused or is likely to cause damage to the plaintiff's goodwill or reputation.
  • The Supreme Court in the case of Cadilla Healthcare Ltd. v. Cadilla Pharmaceuticals Ltd. (2001) observed that, “While dealing with cases relating to passing off, one of the important tests which has to be applied in each case is whether the misrepresentation made by the defendant is of such a nature as is likely to cause an ordinary consumer to confuse one product for another due to similarity of marks and other surrounding factors. What is likely to cause confusion would vary from case to case”.
    • The court also mentioned ‘passing off’ as an action of deceit by stating that “Passing off is said to be a species of unfair trade competition or of actionable unfair trading by which one person, through deception, attempts to obtain an economic benefit of the reputation which other has established for himself in a particular trade or business”.