Vipin Sanghi JUDGMENT
Vipin Sanghi, J.
1. The operative part of the order was passed in Court today on this application. I am proceeding to record the summary of my reasons for granting ad interim injunction in favour of the plaintiffs.
2. The case of the plaintiffs is that the plaintiffs are engaged in the business of designing, developing and marketing uniquely and distinctively designed lifestyle footwear for men, women and children. Plaintiffs No. 1 & 2 are incorporated in United States of America, plaintiff No. 3 is incorporated in India and is a marketing arm of plaintiffs No. 1 & 2 in India. The plaintiffs offer their footwear in distinct categories, one of them being the SKECHERS GOwalk footwear line. The plaintiffs claim that their product reflects a combination of style, comfort, quality and value that appeals to a broad range of consumers. Its products are sold through department and specialty stores, athletic and independent retailers, boutiques and internet retailers. They are also available on e-commerce websites and their own retail stores. The plaintiffs claim that the consumers are attracted to the plaintiffs shoe designs on account of their youthful brand image and fashion-forward designs.
3. In 2011, plaintiff No. 1 introduced and launched its GOwalk series designed for walking and casual wear. The products in the said series offer performance features in a comfortable casual slip-on style. The product line is known for its lightweight and flexible design and promotes natural foot movement while walking. Since the launch of the original GOwalk series, it has evolved through the second and third lines, i.e. GOwalk 2 and GOwalk 3 respectively. The plaintiffs state that the global net sales of GOwalk 3 shoes (part of the GOwalk series) from January 1, 2014 to April 27, 2016 were around USD 308 million (approximately INR 2000 crores) including around USD 200,000 (approximately INR 14 crores) in India. The plaintiffs state that they have sold over 85,000 pairs of shoes in India during December 2014 to December 2015, and over 37,000 pairs of shoes between January 2016 to March 2016.
4. The plaintiffs use a variety of trademarks and other intellectual property rights, including the mark SKECHERS. The plaintiffs state that GOwalk 3 series has been advertised during 2015-16 through various publications and magazines, such as Best Health, Chatelaine, Optimyz and Women's Fitness, Men's Health, Myer Emporium Magazine, Shop Smart Magazine, Vogue, Take 5 Magazine. The Plaintiff No. 1 has also promoted GOwalk 3 series through advertisements in leading newspapers across the globe, including advertisements in Sunday Tasmanian, Herald Sun Newspaper, Women's Weekly, Wairapa Times, Wanganui Times, NZ Women's Weekly, Sunday Telegraph, Bay of Plenty Times, Northern Advocate.
5. The plaintiffs also state that the total expense made by them in India in 2015 for marketing and promotion of their products is to the tune of Rs. 9.4 crores. During January 2016 to March 2016, the plaintiffs have incurred promotional expenses to the tune of Rs. 2.55 crores. The advertisements in respect of GOwalk 3 shoes published in Magazines and leading newspapers in India, including Femina and Filmfare.
6. GOwalk 3 incorporates more advanced performance technologies including a high rebound "Goga Mat" insole, adaptive "GO Pillars" on the outsole and "Memory Form Fit" for a custom-fit experience. The identifying distinct features of the GOwalk 3 footwear of the plaintiffs are enlisted as follows:
• "the positioning of responsive points on the sole of the shoe in distinguishing colors;
• Light weight of the shoe;
• Side "S" logo of Skechers; and
• "Goga Mat" used in the cushioning of the inside sole of the shoe."
7. Apart from claiming........