Microsoft Granted Compensatory And Exemplary Damages Yet Again

Damages in India are traditionally compensatory in nature. However, we find Indian Courts drifting gradually towards the American concept of granting punitive damages. Also known as exemplary damages, the concept is designed to punish for socially deplorable conduct such as fraud or malicious, reckless or abusive action. Being discretionary in nature, they have a deterrent effect. The Indian legal system gave way to the concept for the first time while deciding the case of Common Cause v. UOI [AIR 1999 SC 2979] and has been put to use since then. Revisiting the principle is the case of Adobe Systems Inc. & Anr. v. P. Bhoominathan & Anr. [2009 (39) PTC 658 (Del.)]

Adobe Systems Inc., USA and M/s Microsoft Corporation, USA had filed to seek an order of permanent injunction to restrain the infringement of their copyright, trademarks, passing off, delivery up, rendition of accounts and damages. They contended that the subject matter of infringement were "computer