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DELL INC. GRANTED INJUNCTION AGAINST PARALLEL IMPORTER
The law on parallel imports is no longer res integra as a consequence of a stream of judicial pronouncements which have held that the import and sale of grey market products amounts to infringement. Recently, Dell Inc. joined other successful litigants like Samsung Electronics Ltd. and Bose Corporation in securing an order of injunction against parallel importers of its products.
While considering Dell's case, the Delhi High Court observed that while these grey market products were genuine DELL laptops, these were unfit for the Indian Market and that it was solely Dell's discretion to decide which of its products were suitable for a particular country.
Significantly, the Court took serious cognizance of the material differences between the grey market products and the products sold in India by Dell and observed that in the event these grey market products were found to be substandard, it would be Dell's reputation and goodwill which would be tarnished as a result of the illegal and parallel importation of products which are not meant for sale in India.
The Court further observed that the act of changing or impairing the condition of the products by Pioneer Computronix Pvt. Ltd. amounts to infringement under Section 30 (4) of the Trade Marks Act, 1999.
Lastly, the Court took into consideration all the recent judgments passed both in India and abroad pertaining to the law on parallel importation and accordingly restrained Pioneer and others acting on its behalf from dealing in "grey market" laptops bearing DELL's trade mark.
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