This judgement, delivered by the Competition Commission of Pakistan (CCP) in 2018, concerns a trademark infringement case filed by Starbucks Corporation against Options International (SMC-Pvt.) Limited. Starbucks alleged that Options International was deceptively marketing itself as an international corporation selling Starbucks coffee and allied products, despite having no authorization to use Starbucks’ registered trademarks.
Key Findings of the CCP
The CCP found prima facie evidence that Options International was using Starbucks’ registered trademarks on its website, Facebook page, restaurant signage, crockery, and menu cards.
The CCP determined that Starbucks had a legitimate claim to ownership of the trademarks in question and that Options International’s use of these trademarks was likely to deceive consumers.
The CCP concluded that Options International’s actions constituted a violation of Section 10 of the Competition Act, 2010, which prohibits deceptive marketing practices.
Order Issued by the CCP
As an interim measure, the CCP directed Options International to cease all marketing, advertising, production, and supply of coffee and related products bearing Starbucks’ trademarks and logos.
The CCP also prohibited Options International from claiming any association with Starbucks or using its trademarks or logos on any marketing materials.
Options International was ordered to file a compliance report within seven days and was warned that any violation of the order could result in a fine of Rs. 10,000,000 (Rupees Ten Million Only).
Legal Reasoning Applied by the CCP
The CCP based its decision on the following legal principles:
The need to protect fair competition and prevent anti-competitive behavior.
The importance of protecting consumers from deceptive marketing practices.
The rights of trademark owners to prevent unauthorized use of their trademarks.
The CCP considered relevant case law from the Sindh High Court of Pakistan to support its findings.
Significance of the Judgement : This judgement serves as an important precedent for trademark infringement cases in Pakistan. It highlights the CCP’s commitment to upholding fair competition and protecting intellectual property rights. The judgement also deters businesses from engaging in deceptive marketing practices that could mislead consumers.
Final Order
The Competition Appellate Tribunal (CAT), in its judgement, has dismissed the appeal filed by Options International (SMC-Pvt.) Limited against the decision of the Competition Commission of Pakistan (CCP). The CAT has upheld the CCP’s findings of trademark infringement and deceptive marketing practices by Options International.
Key Points of the Final Order:
Dismissal of Appeal: The CAT has dismissed the appeal filed by Options International, thereby upholding the CCP’s original order.
Increased Penalty: The CAT has increased the penalty imposed on Options International from Rs. 5 million to Rs. 6 million.
CCP’s Findings Upheld: The CAT’s decision validates the CCP’s findings that Options International engaged in deceptive marketing practices by fraudulently using Starbucks’ trademarks.
Background:
Starbucks Corporation filed a complaint with the CCP alleging that Options International was deceptively using Starbucks’ trademarks in its restaurants, leading to consumer confusion and harm to Starbucks’ business interests.
The CCP conducted an inquiry and concluded that Options International had violated Section 10 of the Competition Act, 2010.
CCP’s Order:
The CCP issued an interim order directing Options International to cease using Starbucks’ trademarks and logos without authorization.
In its final order, the CCP imposed a penalty of Rs. 5 million on Options International and directed them to publish a public notice acknowledging their fraudulent use of Starbucks’ trademarks.
Significance of the Final Order:
This final order by the CAT reinforces the CCP’s authority to enforce fair competition and protect intellectual property rights.
It serves as a deterrent to businesses engaging in deceptive marketing practices that infringe on established trademarks.
The order highlights the importance of consumer protection and ensures that businesses operate with transparency and ethical practices.
