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2011 (1) TMI 1587

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..... revenue generated within India was equivalent to 2.1% of India's Gross Domestic Products at Current market price, and the exports per USD 6.3 billion, equivalent to 3.4% of India's exports. The Plaintiff has over 3.5 million shareholders and its assets are valued at US$ 51.7 billion. It is contended that TATA companies have laid the foundation in the industrial core sectors, pioneering the iron steel, textiles, power, chemicals, hotels and automobile industries in India, and that the TATA brand encompasses diverse businesses and services such as computers and computer software, electronics, telecommunications, financial services, mutual funds, tea and publishing. It is further stated that the TATA group was ranked 13th in the list of World's 50 Most Innovative Companies by Business Week, for the year 2009. Further, the TATA brand has also been ranked 65th among top 100 brands worldwide, listed by Brand Finance, (an independent company focused on the management and valuation of brands) Global 500 Report March 2010. Further, for the year 2009, the Plaintiff was ranked as the world's 11th most reputed company according to a study complied by United States based Reput .....

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..... TA as well as the T within a circle device; other trademarks with the TATA logo or the T device under various classes. Further the Plaintiff also is copyright owner to various pictorial representations of the T within a circle device copies of certificate for use in legal proceedings and copies of certified true copies of trademark registration certificates etc., of the trademarks owned by the Plaintiff company are produced along with the suit. The long and extensive use of the Plaintiff's trademark TATA has resulted in its unparalleled reputation and goodwill and it has therefore acquired the status of a well-known' trademark. The Plaintiff alleges that it has successfully and vigorously enforced its trademark rights in the mark TATA in respect of various goods and services. 6. The Dhamra Port Company Limited (DPCL) is a 50 - 50 joint venture of Larsen and Toubro limited and TATA Steel limited (a publicly listed company of which the Plaintiff is the promoter). DPCL was awarded a concession by Government of Orissa to build and operate a port north of the mouth of river Dhamra in Bhadrak district on BOOST (Build, Own, Operate, Share and Transfer) basis for a total .....

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..... possible without running into Ratty (presumably after Ratan Tata, chairman of the Tata Group), matty, Natty or Tinku Further, by the impugned game TURTLE v. TATA the Defendants are spreading the following defamatory remarks and statements about the Plaintiffs: ... while dodging the TATA demons if you eat a power pill, you will be gifted with super turtle powers to vanquish the demons of development that are threatening your home Copies of articles/documents and printouts pertaining to the Defendant wherein such derogatory remarks against the Plaintiff has been produced along with the suit. 8. The Plaintiff submits the impugned game and the Defendant's use of the TATA mark and T device within a circle, amounts to defamation, with the ulterior motive of damaging its reputation. This is also motivated at prejudicing the Plaintiff's immense goodwill, as well as the reputation of Mr. Ratan Tata, the Chairman of Tata Steel. The Plaintiff also alleges that this is aimed (by the Defendants) to create a false impression with members of the general public, about its activities. It is also urged, besides that the Defendants have demonstrated their dishonesty by putting .....

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..... unsel submits that the Defendant has intentionally and calculatedly targeted Tata Sons alone for the defamatory statements. It is submitted in this regard that Tata Sons is only 50% shareholder/stake holder in the joint venture for setting up of the port and which is for the benefit of the State of Orissa. Therefore, to target the Tata's by drawing the attention of the public to its trademark and the logo is not only malicious but untrue as the impression sought to be conveyed is that the entire project has been conceived, established and is owned by the Tata's. It is submitted that portraying the Plaintiff as a demon in the game with pointed use of the T device is malicious, as it is intended to convey to the world at large the so called heartlessness in setting up the Dhamra Project. Had the intention of the Defendant really been to express dissent, and if indeed they wanted to speak in hyperboles there was other legitimate means of doing so. 12. The Plaintiff further argued that regardless of whether compensation can be granted at the final decree stage, the Court is not powerless when faced with the question of protecting the reputation and goodwill of a citizen or th .....

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..... money with regard to defaulters, and hence, the Respondents are also entitled to use the same expression, cannot be accepted at all. It may be noted here that the statement made by the Hon'ble Finance Minister was within the four walls of the Parliament and hence, the same was privileged. The Respondents, however, do not have any such privilege to make such a type of statement by using such expressions. 52. Even the tenor of use of such expressions in the said Press Note quoted hereinabove, which has been complained of do not indicate that the same has been made bona fide and in the larger public interest. If the Respondents were keen about making the statement in large public interest, there were means and ways by which the same could have been communicated, but not by using of such highly damaging expression. The Respondents also have not taken the reasonable precaution of ascertaining the truth before publication. XXX XXX XXX 55. As pointed out hereinabove, the learned Judge of the Bombay City Civil Court has ignored the settled principle of law in India, mis-applied the principle of law in the sense, merely on the basis of a plea of justification taken by the Defe .....

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..... prejudice to the Plaintiff who is the subject of defamation. 15. The Plaintiff lastly argued that the use of T device and the Tata mark, although not in the course of trade, will amount to trademark infringement of dilution or tarnishment if one applies the appropriate tests evolved by the United States Courts. The Plaintiff relied upon Section 29(4) of the Trade Marks Act, 1999 and submitted that use of trademark is not confined merely to the Defendant engaging itself in a trade or commercial activity, but other forms of speech or representation, which would tarnish the Plaintiff's mark. In this regard the Plaintiff relies upon the judgment reported as The Coca-Cola Company v. Gemini Rising Inc., 346 F.Supp 1183 (1972) as well as Louis Vuitton Malletier S.A. v. Haute Diggity Dog, LLC; 507 F.3d 252 (4th Cir 2007). 16. The Greenpeace India Society (the second Defendant, hereafter called Greenpeace India ) is an independent global campaigning organization that acts to change attitudes and behavior, to protect and conserve the environment and to promote peace; it was established on 28th of June, 2004, and has consistently espoused environmental issues and the impact of d .....

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..... ndangered Species of Wild Flora and Fauna (CITES). It is urged that India is a signatory to both these conventions and that in 1997, the nesting beaches and habitats were granted legal protection as part of the Gahirmatha Marine Sanctuary. The close proximity of the port site poses a clear and significant risk to the Gahirmatha Marine Sanctuary and the surrounding turtle nesting and breeding habitats. There is a substantial risk to the survival and thriving of the endangered Olive Ridley turtles due to the damage caused on account of dredging, light and chemical pollution, oil or chemical spills, continuous shipping traffic, danger of accident and secondary development on account of the port. 18. Greenpeace India urges that in view of significant threats to nearby protected areas, the endangered Olive Ridley Sea Turtles, the marine environment, and coastal communities, it has been highlighting the concerns through peaceful and non-violent means. It submits to having been working towards protecting one of the world's largest sea turtle mass nesting sites for the last five years. Greenpeace India claims being shocked on learning that the only assessment of the project was done .....

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..... ect, the Defendant launched a Pac-Man inspired video Game TURTLES v. TATA (hereinafter referred to as the Game ), on the 30th anniversary of the game, to protest and garner public opinion against the project. The online game is designed as creative, peaceful and nonconfrontational platform to draw attention to the threat that the Olive Ridley Sea Turtles are facing due to the Project. It is submitted that the message conveyed by the game is that the endangered Olive Ridley Turtle is in danger of losing its habitat at Gahiramatha because of the construction and setting up of the Port. The on-line game has been created to raise awareness about the danger that the project poses to local marine life in the region. 20. Greenpeace India alleges that a reading of the suit averments reveals that it is intended to be for alleged defamation rather than infringement of trademarks, which has also been joined with a view to address the deficiencies in the Plaintiff's claim for alleged defamation. It is submitted that the Plaintiff itself has candidly stated in the plaint that the entities defamed are Dhamra Port Company Ltd. and Tata Steel Ltd. The other TATA entities have not been impl .....

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..... al dangers posed by the project to the ecology of the area in question. The game in question is merely depicting the challenges that Olive Ridley turtles would have overcome in order to survive in spite of the Project. 21. Greenpeace India submits that the reference to the word Demons is only with a view to emphasize and drive home the point that development through the project in question, tantamounts to a demon which threatens the existence and survival of the Olive Ridley. The juxtaposition of the word demons with TATA and with reference to the project, is merely hyperbole. The word demons have been used as an overtly emphatic expression primarily with the purpose of making a strong impact impression without intending it to be taken literally. When the word and indeed the entire game is viewed in this light, it can hardly be said to be defamatory. The game succinctly and creatively enables the registering of protest and concerns in relation to the future of the Olive Ridley turtles in the region and the juxtaposition of the word Demons with TATA and indeed with reference to the projects itself, as a mere hyperbole and must be seen and viewed in the context of fair c .....

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..... jan v. P. Jagajivan Ram 1989 (2) SCC 574 to submit that terms and expressions, in a defamation case, are not to be seen in isolation of their context, and the Court must allow a certain latitude to the author or maker who is exercising his right to free speech or fair criticisms in regard to matters of public concern. Counsel urged that the importance of free speech in a democracy, in matters of moment and issues that concern the people, cannot be undermined, and was recognized long ago in England, in Bonnard v. Perryman [1891] 2 Ch 269, where it was held that exceptional caution has to be exercised by the Court while exercising jurisdiction to interfere by way of injunction. Counsel emphasized that in the said decision, the Court highlighted that- ...The right of free speech is one which it is for the public interest that individuals should possess, and,.... Until it is clear that an alleged libel is untrue, it is not clear that any right at all has been infringed; and the importance of leaving free speech unfettered is a strong reason in cases of libel for dealing most cautiously and warily with the granting of interim injunctions.... 23. Next, Greenpeace India relied on Gr .....

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..... bmits that it hosts a separate website. It is argued on behalf of Greenpeace International that its arrangements with Greenpeace India are such that the latter takes independent decisions and is autonomous from the International organisation. Greenpeace International also urges that the objectionable game and website has not been published by it and not it be held responsible for the actions and publications of Greenpeace India, which are the subject matter of the present suit. 26. As is apparent from the above discussion, this case concerns the creation of an online game by Green Peace India called Turtle v. Tata'. The principal objective of the game, as argued by Greenpeace India, is to bring to the public's notice the alleged destruction of the Olive Ridley Turtles' nesting habitat by the construction of the Dharma Port. This game has been fashioned in such a way, that the TATA logos essentially play the role of an antagonist. The turtle has to, in the game, strategically destroy the TATA logos. The Plaintiff along with some third parties (The Wall Street Journal article) has interpreted the objective of the game as demonising of the TATA group. The other objecti .....

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..... rest (Conservatory) Act 1980. The learned Counsel for the Defendant has also advanced an argument under the legal maxim of locus standi. The essence of the argument is that the House of TATA and the different TATA companies (including TATA Steel) are separate entities and thus have no locus standi for an alleged case of defamation and violation of the TMA against TATA Steel. The Defendant further submits that the game, as well as use of the TATA logo and trademark do not amount to infringement, and are meant to be a parody. It is argued in this context that the use of the term demon is hyperbolic. 28. The English common law precedent on awarding interim injunctions in cases of defamation is set out by the case of Bonnard (supra). In Bonnard it was decided that an interim injunction should not be awarded unless a defence of justification by the Defendant was certain to fail at trial level. The Court's observations, widely applied in subsequent judgments are as follows: ...[The subject-matter of an action for defamation is so special as to require exceptional caution in exercising the jurisdiction to interfere by injunction before the trial of an action to prevent an anti .....

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..... The Plaintiff had not shown that the Defendant's statement was untrue...the line of authority is long and weighty that interlocutory injunctions in these cases will not be granted unless the Plaintiff shows that the defence of justification will not succeed.... In Herbage v. Pressdram Ltd. [1984] 1 WLR 1160 Griffiths LJ restated the effect of the rule and then said (at p 1162H): These principles have evolved because of the value the court has placed on freedom of speech and I think also on the freedom of the press, when balancing it against the reputation of a single individual who, if wrong, can be compensated in damages. He refused to water the principles down. After summarizing an argument by counsel, which suggested that the combined effect of the Rehabilitation of Offenders Act 1974 and the decision of the House of Lords in American Cyanamid Co. v. Ethicon Ltd. [1975] AC 396 justified a radical departure from the rule, he went on to say (at p 1163B): If the court were to accept this argument, the practical effect would I believe be that in very many cases the Plaintiff would obtain an injunction, for on the American Cyanamid principles he would often show a ser .....

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..... as it would be unreasonable to fetter the freedom of speech before the full trial takes place, where each of the parties can argue in detail with the help of additional evidence. Similarly in this matter, it is incumbent upon this Court to decide whether it would be reasonable to fetter the reasonable criticism, comment, and parody directed at the Plaintiff, which to a large extent is protected by the Constitutional guarantee to free speech, to all the citizens of India. This point of view was also strengthened by a recent challenge to the old common law rule of Bonnard in the case of Greene v. Associated Newspapers Limited, 2005 (1) All.ER. 30, where it was decided that if it is a known fact that the true validity of the defamation claims will only be tested at trial level then it would only be appropriate for the Court not to award an interim injunction to the Plaintiffs as it would otherwise put an unreasonable burden on the concept of free speech. After an elaborate survey of the law on the issue, it was held that: This survey of the case law shows that in an action for defamation a court will not impose a prior restraint on publication unless it is clear that no defence wil .....

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..... ning the amount for damages for defamation (i.e. Rs 10,000,000). Therefore it is submitted that the amount of damages asked for by the Plaintiff to a large extent is difficult to establish and award. The other point proffered by the Lord Denning in the cases of Woodward and Frasier (and also in Greene, subsequently) was that it would be unjust to fetter the freedom of expression, when actually a full trial had not taken place, and that if during trial it is proved that the Defendant had defamed the Plaintiff, then should they be liable to pay the damages. Frasier also stated that a successful claim for a permanent injunction at a later stage would obviously negate the amount of defamation created by the Defendants at the pre-trial level. The ratio for not granting an injunction at an interim level is essentially because it would be too onerous on the Defendant to either stop publication of the material or that it would be an unjust restriction on the freedom of expression. 32. This Court is also bound to follow the Bonnard principle, further, for the reason that in Khushwant Singh, a Division Bench had noticed, and followed it, although in a slightly different context, i.e. asse .....

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..... While the Plaintiff's invocation of the Court's power under Order XXXIX, Rule 2 cannot be faulted, the sequitor to it, that it is entitled to injunction on account of the Defendant's false or untrue statements, and therefore their mala fides is not as easy to deduce. The fact that it is not Greenpeace India alone which is voicing concerns about the alleged or potential destruction about the Olive Ridley turtles' habitat and nesting grounds, is clear because environmental experts appear to have written about it, and sought to intervene in Supreme Court proceedings. It is quite possible that the concerns are genuinely held beliefs, even backed by materials. That the project received clearances and approvals, only discloses the truth of that fact, i.e. that it was granted legal sanction and permission. Yet, it is open to all - especially more in a plural democracy such as in India, to hold views, based on whatever materials the person concerned is relying upon - that the project indeed is ecologically disastrous - potentially, notwithstanding the clearances issued or granted by the statutory and government agencies. Such beliefs and their articulation cannot be charact .....

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..... sewer sludge. Merco originally planned to ship the sludge to Oklahoma, and dispose of it by spreading it on grassland. However, Merco could not comply with Oklahoma environmental regulations in time to accommodate its contract. Merco promptly chose Sierra Blanca, a town in West Texas, as the new destination for the sludge. Merco obtained state permits to spread sludge in Texas in less than a month. Merco purchased a ranch in Sierra Blanca as a disposal site for the sludge shipments, which began arriving in July 1992. When sludge arrived from New York, Merco applied it to the ground at the ranch as a fertilizer. A TV feature was broadcast on this, with interviews and commentary by an Environment Protection Agency official. Merco sued the official and the TV channel for defamation. The Trial Court granted relief; the Appellate (Circuit) Court reversed the judgment. It was held (by the Circuit Court) that the use of expressions such as poison and Merco's activities were an illegal haul and dump operation were hyperbolic, and did not use to actual malice: 18. Proving actual malice is a heavy burden. Proof that a Defendant broadcast false statements will not alone show actua .....

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..... nce to permit the conclusion that the Defendant in fact entertained serious doubts as to the truth of his publication. St. Amant, 390 U.S. at 731, 88 S.Ct. at 1325. That evidence is lacking here. Earlier, the US Supreme Court, in Milkovich v. Lorain Journal Co. 497 U.S. 1 (1990), ruled that existing law adequately protected freedom of expression without the creation of an artificial dichotomy between opinion' and fact. In particular, it pointed to precedent providing that a statement on matters of public concern must be provable as false before there can be liability under state defamation law .... It was further held that: a statement of opinion relating to matters of public concern which does not contain a provably false factual connotation will receive full constitutional protection. Id. at 20. The Court further observed that rhetorical hyperbole' is protected by doctrine requiring that allegedly defamatory statements (such as the characterization of a union dissident as a traitor ) reasonably be interpreted as stating actual facts. 36. It must not be forgotten that the Court is, at this stage, merely weighing the arguments of parties without the b .....

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..... ion can occur almost instantaneously, participants in online discussions place a premium on speed. Indeed, in many fora, speed takes precedence over all other values, including not just accuracy but even grammar, spelling, and punctuation. Hyperbole and exaggeration are common, and venting is at least as common as careful and considered argumentation. The fact that many Internet speakers employ online pseudonyms tends to heighten this sense that anything goes, and some commentators have likened cyberspace to a frontier society free from the conventions and constraints that limit discourse in the real world. While this view is undoubtedly overstated, certainly the immediacy and informality of Internet communications may be central to its widespread appeal. Although Internet communications may have the ephemeral qualities of gossip with regard to accuracy, they are communicated through a medium more pervasive than print, and for this reason they have tremendous power to harm reputation. Once a message enters cyberspace, millions of people worldwide can gain access to it. Even if the message is posted in a discussion forum frequented by only a handful of people, any one of .....

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..... t communications outlined in paragraphs 28-33 above. [45] Had the motions judge taken these characteristics of the Internet more fully into account, she might well have recognized Barrick's exposure to substantial damages to its reputation by reason of the medium through which the Lopehandia message was conveyed.... Does internet use, for posting or publishing libellous material, call for a different standard-especially in considering a Plaintiff's claim for temporary injunction, is the question this Court has to address in the light of the Plaintiff's submission. Now, speech (or expression) can be in any form - printed, spoken, articulated through drama, poetry, mime, parody, or the like. The speaker can choose any medium he wishes to subject to its availability. Thus, material can be published in books, newspapers, magazines, or the underlying work performed in theatre, or films, or recited, or even sung. It can be recorded, and digitally stored in discs, tapes, and played or performed (or viewed) publicly or privately, later. Similarly, the content of articles or the views of someone can be broadcast over radio, or television, and repeatedly broadcast. The view .....

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..... on standard, other than the Bonnard rule. The Court does not discern any such discussion; adopting such an argument would result in the anomaly of discriminating between one medium of expression and another, in assessing whether to grant temporary injunction restraining publication - which is neither salutary, or as this Court suspects, Constitutionally sanctioned. In law, publication of a libel even to one is sufficient to impel a suit for damages; the wider reach of the publication or its greater accessibility is perhaps a ground for assessing the degree of damages. Formulating and adopting any other approach would result in disturbing the balance between free speech and the interest of any individual or corporate body in restraining another from discussing matters of concern, so finely woven in the texture of the Bonnard ruling. 40. The Plaintiff has also claimed, that apart from outright defamation the Defendant's actions have also acted in violation of the Trade Marks Act 1999. As mentioned earlier the Plaintiff claims that the Defendant's use of the TATA logo in their games in violation of Section 29(4) of the Act. A textual reading of the statute makes it clear th .....

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..... orders because they will be able to cross the threshold. Traders who make claims for their products which they cannot readily and firmly justify will have to live with the risk that their rivals can honestly and reasonably call those claims into question pending a final resolution as to whether the claims are in fact good. Applying this reasoning, in the current case the Defendant's use of the trademark was at a much lower degree of parody and ridicule, as the Defendants are not involved in any kind of similar entrepreneurial/ business venture as the Plaintiff is involved. Therefore the Court should be aware of the fact that the general tolerance level of another body using (Defendants) a registered trademark to put forward its cause is at a high threshold.... 41. The Defendant had submitted, on the strength of the ruling of the South African Constitutional Court in Laugh It Off (supra) that the use of the TATA mark and device was parodic. The term parodic is an adjective for parody which, according to the Merriman Webster Dictionary is a literary or musical work in which the style of an author is closely imitated for comic effect or ridicule. The judges of the Court wro .....

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..... sly, but deliberately and precisely in order to challenge SAB's use of branding. It went further. It employed the enemy's brand to denounce the power of branding in general, and to confront the employment of trademark law, in our country as elsewhere, to suppress free speech. It was a calculatedly risky activity, with the sense of irreverence and provocation being intrinsic to the enterprise. If parody does not prickle it does not work. The issue before us, however, is not whether it rubs us up the wrong way or whether Laugh It Off's provocations were brave or foolhardy, funny or silly. The question we have to consider is whether they were legally and constitutionally permissible. I believe they were eminently so, and give my reasons. The paradox of parody 76. Parody is inherently paradoxical. Good parody is both original and parasitic, simultaneously creative and derivative. The relationship between the trademark and the parody is that if the parody does not take enough from the original trademark, the audience will not be able to recognise the trademark and therefore not be able to understand the humour. Conversely, if the parody takes too much it could be consider .....

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..... e parody itself, the more intense will the paradox be. 'Target' parodies seek to comment upon the text itself or its creator or owner, while 'weapon' parodies involve the use of that text to comment on something quite different. Jurists such as Posner and Kennedy J have suggested that weapon parodies involving the hijacking of a well-known image to attack something entirely unrelated, should not enjoy free speech protection. Another view is that whether the parody of a trademark targets the mark directly or uses it to hit at another target should not be decisive in itself, but merely one of the factors to enter the scales when free speech and property rights are balanced against each other. In either event some degree of paradox will exist to trouble the law.... Balancing free speech and trade mark protection 82. The question to be asked is whether, looking at the facts as a whole, and analyzing them in their specific context, an independent observer who is sensitive to both the free speech values of the Constitution and the property protection objectives of trademark law, would say that the harm done by the parody to the property interests of the trademark ow .....

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..... s, some degree of commerce should not in itself exclude the activity from free speech protection. Nor, however, should an element of social criticism on its own save an inherently commercial activity from a charge of unfairly causing detriment. 87. Similarly, the fact that the message could have been conveyed by means other than parody should not be decisive or even significant, again depending on the facts. If this were not so there would be no scope at all for trademark parody, because the message could always be conveyed more directly, if less convincingly, by production of a leaflet or else a letter to the editor. In our consumerist society where branding occupies a prominent space in public culture, one does not have to be a 'cultural jammer' to recognise that there is a legitimate place for criticism of a particular trademark, or of the influence of branding in general or of the overzealous use of trademark law to stifle public debate. In such circumstances the medium could well be the message, and the more the trademark itself is both directly the target and the instrument, the more justifiable will its parodic incorporation be. Conversely, the more the trademark .....

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..... the backdrop of the values of an open and democratic society.... In Louis Vuitton Malletier S.A. (supra) the US Circuit Court had to deal with Louis Vuitton's claim that its marks, used for luxury products and accessories, were infringed by dilution, when the Defendant's Chewy Vuitton used a similar mark, with similar combination and similar logo, but in respect of dog toys. The Defendant had argued that its marks were a parody of the Plaintiff's famous marks, and therefore, did not constitute infringement. After discussing the rival submissions, and the statute, i.e. the Trademark Dilution Act, the Court held that: The TDRA, however, does not require a court to ignore the existence of a parody that is used as a trademark, and it does not preclude a court from considering parody as part of the circumstances to be considered for determining whether the Plaintiff has made out a claim for dilution by blurring. Indeed, the statute permits a court to consider all relevant factors, including the six factors supplied in 1125(c)(2)(B).Thus, it would appear that a Defendant's use of a mark as a parody is relevant to the overall question of whether the Defendant .....

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..... riticism of Esso's environmental policies, was a denominative use of is (Esso's) mark that did not infringe it. 42. The above analysis would show that the use of a trademark, as the object of a critical comment, or even attack, does not necessarily result in infringement. Sometimes the same mark may be used, as in Esso; sometimes it may be a parody (like in Laugh It Off and Louis Vuitton). If the user's intention is to focus on some activity of the trademark owners, and is denominative , drawing attention of the reader or viewer to the activity, such use can prima facie constitute due cause under Section 29(4), which would disentitle the Plaintiff to a temporary injunction, as in this case. The use of TATA, and the `T' device or logo, is clearly denominative. Similarly, describing the Tatas as having demonic attributes is hyperbolic and parodic. Through the medium of the game, the Defendants seek to convey their concern and criticism of the project and its perceived impact on the turtles habitat. The Court cannot annoit itself as a literary critic, to judge the efficacy of use of such medium, nor can it don the robes of a censor. It merely patrols the boundari .....

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