The Bajaj Auto vs TVS Motors patent controversy was the one which caught media attention as two motorcycle companies battled over the trademark of an engine used in the motorcycle ‘Flame’ to be launched by TVS. Initially, Bajaj secured an injunction from a single bench from Madras High Court against TVS Motors Co. Ltd. restraining them from launching a new motorcycle under the name ‘Flame’. TVS in an appeal in front of a division bench had this decision overturned. Appalled by this Bajaj moved the Supreme Court in an appeal where the Supreme Court affirmed the decision given by the division bench of Madras High Court. This turned out to be a landmark judgment in the history of patent dispute cases.

Facts

In 2007, Bajaj was granted a patent for the patent application of “An improved Internal Combustion Engine working on four stoke principle”. As per Bajaj, the changes to their previous engine was the better placement of spark plugs which enabled the flame to travel faster during combustion. This invention came to be called “DTS-I Technology”. According to Bajaj, they sold over 1.5 million of their manufactured motorcycle ‘Pulsar’ since 2003 and that the motorcycle used this engine which was then not patented still. They argued that the engine was popularized and very well-known and that they had already applied for its patent. In 2007, TVS announced the launch of a motorcycle named ‘Flame’ which used a 125 cc engine. The engine was very similar to the Bajaj’s engine with a slight modification which made it novel in its own. Bajaj issued threats to TVS trying to prevent them from launching of their new motorcycle. TVS filed a suit in the Madras High Court under sections 105 and 106 of the Trademarks Act constituting the threats from Bajaj as groundless and sought Court intervention restraining Bajaj from intervening in the launch of their new motorcycle.

Held

The single bench instead granted an injunction against TVS restraining them from launching their new motorcycle. This injunction was granted on prima facie grounds. Prima Facie case is when the Court is satisfied after the triple test of novelty that the invention does not have a novelty element. The Court also noted that the Bajaj engine had been in the market for over 4 years before the dispute arose so it was a very well-known and a popular motorcycle engine and thus it was not possible to revoke the vehicles sold over the four years.

The division bench of the same High Court overturned the decision and observed that the operation of the invention as claimed by the Bajaj was plug centric whereas that of TVS was valve centric, and on scrutiny of the claim as set out in the final complete specification it held that it found it difficult to hold that Bajaj’s claim that the TVS' product specification infringed Bajaj’s patented right.

The Supreme Court prima facie affirmed the division bench’s decision and further held that the matters related to trademarks, copyrights and patents, and the provisions of Code of Civil Procedure must be heard on day to day basis without any adjournment and a decision must be delivered in these matters within 4 months of the filing of such suits.

Conclusion

The decision by Supreme Court has changed everything for the matters related to trademarks, copyrights and patents as it fast-tracked all the matters in these areas. It provided guidelines on how IPR related matters must be heard and decided upon on priority basis. This is a very celebrated decision amongst holders of IP rights and restores faith in Indian Judiciary by shattering the image that it takes decades to decide cases.