ENFORCEMENT / CONDUCT CASES
Abuse of Dominant Position
CCI holds existence of rights in subject matter a condition
precedent to initiate abuse of dominance investigation
In an interesting abuse of dominance precedent, the Competition
Commission of India (CCI) has declined to initiate an investigation
into the allegation that SPS Steels Rolling Mills Limited (SPS
Steels) had abused its position of dominance by restraining the use
of its trademark, "Elegant".1
Facts of the case
SPS Steels, a manufacturer and seller of various metals,
conducted its business under several trademarks including,
"Elegant". SPS Steels had entered into a "brand
sharing agreement" with the complainant - Prashant Properties
Private Limited - a corporate entity engaged in the marketing and
distribution of steel products. Through the brand sharing
agreement, the complainant had the right to use the
"Elegant" trademark for a period of 21 years.