1st ALC INTRA COLLEGE MOOT COURT COMPETITION, 2022

MOOT PROBLEM

BEFORE THE HIGH COURT OF CHUMBAI

REPUBLIC OF GINDIA
Case No. ___/2022

Candy World and Co. Ltd. Petitioner

Having it’s registered office at:

Sorivali, Chumbai
Vs.

Candies World and Co. Pvt. Ltd. Respondent

Having it’s registered office at:

Jhembur, Chumbai

a) This hypothetical problem is conceived and prepared by Mr. Mohit Yadav and Miss Swati

Jhajhria students of 5th year Army Law College, Pune.

b) To the knowledge of the authors, there is no similar proceeding pending anywhere in the

world. The problem is purely hypothetical and fictional. Any similarity with situations or

names is purely coincidental and unintentional.

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1. Republic of Gindia is a Sovereign Nation located in the South Asian Region. Its

Constitution Laws, institutions and social ethos are substantially similar to that of

the Republic of India. The Federation of Lumerica is a Sovereign Nation whose

constitution, laws and social ethos are substantially similar to that of the United

States of America.

2. Candy World and Co. Ltd. (hereinafter referred as “Candy World”) is a company

based in United States of Lumerica and registered under appropriate United States

of Lumerica Laws in the year of 2005. Candy World is engaged in production and

distribution of “Mango Candy” which it sells under its trademark “Candy of our

shop, taste on top” (Annexure 1). Candy World applied for registration of

trademark in various countries including Gindia in March 2006 and received the

registration in Gindia in September, 2006. It started production and distribution of

its said product immediately after the establishment.

3. Candy World supplies its product in all of Lumerica. It undertook various

marketing campaigns and strategies to attract more customers. With the era of

internet the company also came up with their own website with the domain name

www.candyworld.com in the year December, 2006.

4. After one year of its establishment Candy World started supplying its product to

Gindia using it’s website. The company was known for their hygiene and proper

delivery of goods and the company’s online consumers were very satisfied by the

company.

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5. When their candy gained a lot of attention in Gindia the Candy World started its

business activities in Gindua in April 2008 by incorporating a company “Candy

World (Gindia) and Co. Ltd.” (hereinafter referred as Candy World (Gindia)). It

established its registered office in Sorivali, Chumbai. It targeted Northern and

Central part of Gindia for its potential market.

6. Candy World sells it mango candy in a unique mango shape wrapped in

transparent plastic packaging with the idea to attract consumers, mainly kids. The

creative shape of product had now become the face of this company. However,

the company haven’t registered it’s unique design.

7. Candy World made Rs. 12,000,000 annually as profits of its candy which become

highest selling products in children’s category, reflecting its popularity among

them. The sale price of mango candy is Rs. 5 per candy.

8. The product was well advertised, with tagline “candy of our shop, taste on top”

and musical jingle running through television commercials, social media

commercials and print media. They engaged a famous actress Miss Chatrina Chaif

and a famous child dancer, Bunty to endorse the product which cost them heavy

expenditure. The “candy of our shop, taste on top” mango candy is now a

household name among all age groups.

9. In the year of 2016, the registration of trademark “Candy of our shop, taste on

top” expired in Gindia, by oversight, the said registration was not renewed within

the time provided by law.

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10. With the increasing reach of social media platforms company came up with it’s

handles on various social media platforms in January, 2017. “@candyworld” on

Instagram, candyworld on Facebook, and various other social media platforms.

Soon after the company came up on social media, it gained a huge base of

followers and become popular for the memes based on it’s mango candy it used

to share on various handles.

11. The Candy World is extremely involved in the CSR activities in Gindia. The

company’s ethos are that the child should be protected in all costs and to provide a

safe environment for our children conversation of environment is essential. The

company has run various campaigns related to environment protection and

awareness. The company was an active participant in the clean Gindia drive. It

has opened school for under privileged children in Sorivali. And has participating

in various fund raising events for education and welfare of children. They are also

funding various local NGOs who are working for welfare of children.

12. In April 2018, Candies World and Co. Pvt. Ltd. (hereinafter referred to as

“Candies World”) a company registered under the Companies Act, 2013, having

its registered office in Jhembur, Chumbai started production and sales of range of

fruit candies under the trademark “taste on top, candies of our stop” (Annexure

2).

13. In March 2019, Candies World applied for the registration of its said trademark

under Trademarks Act, 1999. In October 2019, Candies World was granted

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trademark registration certificate for the trademark and logo “taste on top, candies

of our stop” by the competent authority.

14. To attract consumers Candies World adopted fruit-shape for candies; such as

litchi candy in litchi shape, orange candy in orange shape, apple candy in apple

shape and so on. Due to extensive marketing, Candies World saw a substantial

rise in its sales and consumer base.

15. Its products were extensively campaigned throughout the country, with catchy

tagline “taste on top, candies of our stop” and musical jingle aired over the

television as well as digitally marketed on social media platforms. They also

engaged, Glora Fateh, a famous actress and a child dancer, Chintu, as their brand

ambassador, so as to attract more consumers. Candies World also came up with

their website with domain name www.candiesworld.com so as to be able to export

to other countries even. The company was blooming with profits because of its

marketing, packaging and consumer-centric approach.

16. In January, 2020 with the increasing love of making feels i.e. acting and dance on

short videos. One of the employees of Candy world who has signed the

employment agreement with the company came up with a music for their mango

candy. The company paid famous actors, influencers, sports stars, dancers and

singers to make feels on their music. The feels on the music of company become

very famous and it was in trend that time.

17. In a short span of time, Candies World experienced high surge in the sales of its

various products especially in the sales of mango candy. Candies World though

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originally carried out its major operations in southern part of the country, in

November, 2020 they decided to extend their sales to Northern part of the

country.

18. The company, Candies World seeing the craze of feels on today’s social media in

June, 2021 decided to make music for their candies and to engage celebrities to

make feels on the same. A person gave the company song for their candies which

includes both music and lyrics (Annexure 3) for which the company paid me huge

royalty. The music and feels were in no. 1 trend in its first week of release which

encouraged the company to file for copyright registration ok the music. And they

filed for copyright registration in September, 2021 in the competent authority.

19. In November, 2021 Candy World witnessed a drop in the sales of their candy in

Gindia as well as foreign market. It also received several complaints from the

consumers for bad taste of candy. As a matter of fact, various consumers found

alien ingredients in the candy leading to food poisoning among children. Various

complaints were filed before the District Consumer Forum in Chumbai, having

competent jurisdiction, claiming compensation for the damages suffered due to

consumption by the consumers. Candy World faced a lot of backlash from the

general public which resulted in loss of profit and reputation among the public.

20. Due to complaints in the District Consumer Forum and drop of sales in

market, Candy World undertook an investigation and survey of the markets to

ascertain the reason for the drop in sales. Upon investigation they discovered that

the drop in sales was because of the presence of Candies World and Co. Pvt. Ltd.

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And because of their trademark “taste on top candies of our stop”, music and

marketing techniques.

21. This was a matter of concern for Candy World (Gindia) and Co. Ltd. and they

decide to take up legal action immediately to avoid confusion amongst consumers

and to avoid further drop in sales. There was also a threat to its goodwill

associated with the product and the company. Legal proceedings were initiated by

the team of legal advisors of the Candy World (Gindia) in the High Court having

judicature at Chumbai. It has also moved to the Court with an application seeking

interim relief.

22. The reliefs sought by Candy World:

A. An injunction to restrain the manufacture and use of Corporate Name, use

of trademark, use of packaging and use of domain name;

B. Order for the delivery of the infringing labels and marks for destruction or

erasure;

C. Damages for losses suffered, and intentional damage to the goodwill and

reputation of the company;

23. Soon they discovered that the Candies World has filed for registration of

copyright on the music. The Candy World filed an objection to the application of

copyright by candies World stating that the music is substantial similar to that of

their music and therefore, is infringing their copyright. But since the time for

raising objection was over, the Candies World was given the registration of

copyright on their music.

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24. This left the Candy World in shock and the legal team decided to file an appeal in

Intellectual Property Appellate Board against the registration of the copyright of

the Candies World by the Competent authority. The Candy World contented that

the music of the song of Candies World is substantially same to that of their own

music, therefore the copyright granted to them is not valid. While the Candies

World make a big revelation that the person who has made the music for Candy

World has duly assigned the rights on song to Candies World. The person

assigned the music along with lyrics to Candies World because there was no

assignment of rights on music to Candy World by him. Both the parties were duly

heard in the IPAB and they board came to the conclusion that the competent

authority was right in issuing registration of copyright to the candies World as the

music is not of nature as to infringe the rights of Candy World in any manner.

25. Aggrieved by the order of Intellectual Property Appellate Board, the Candy World

filed a petition in High Court of Chumbai against the order of Intellectual

Property Appellate Board.

26. For the purpose of hearing both the cases have been clubbed together and shall be

heard together by the honourable court.

27. Issues:

1. Whether the suit for infringement of unregistered trademark can be filed or

not?

2. Whether the trademark of respondent is infringing the petitioner’s

trademark or not?

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3. Whether the music of respondent is infringing the rights of petitioner or not?

4. Whether the relief sought by petitioner can be granted or not?

Note:

1. The music of both the companies is similar to each other.

2. The actress Catherina Chaif engaged by Candies World and the

actress Glora Fateh engaged by the Candy World bear resemblance in

their physical appearance.

3. The child dancer Chintu engaged by Candies World and the child

dancer Bunty engaged by Candy World bear resemblance in their

physical appearance.

4. No virus similar to that of corona virus in nature or substance has

ever spread in the countries mentioned in the moot proposition and

there is no adverse impact on economy of these countries during the

time line provided in moot proposition.

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Annexure 1

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Annexure 2

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Annexure 3
“Let me love the candy ... the candy i want is mango,

strawberry, apple and cherry..

Let me eat the candy the candy i love ....

Ohh yaa its again cherry ....

I love the way it shaped ..

I love the way it wrapped ...

I Just close my eye and lick the shape...

And i can find the flavour and shape ...

I just love the candy...

The candy i want……”

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