Legal Reasoning Questions for CLAT | QB Set 65

A trademark is a distinctive sign, word, logo, symbol, shape, or combination thereof that helps consumers identify the source of goods or services. Trademark law protects both businesses and consumers by preventing confusion in the marketplace. Courts often examine whether an ordinary consumer is likely to be misled by the similarity between two marks.

In the landmark case of Cadila Health Care Ltd. v. Cadila Pharmaceuticals Ltd., the Supreme Court emphasised that even medicinal products with similar names can create serious public harm if consumers are confused. Similarly, in Amritdhara Pharmacy v. Satya Deo Gupta, the Court held that marks should be compared from the perspective of an average consumer with imperfect recollection. Another important principle emerged from N.R. Dongre v. Whirlpool Corporation, where protection was granted to a well-known foreign trademark despite limited physical presence in India.

Trademark infringement generally occurs when an unauthorised person uses a mark that is identical or deceptively similar to a registered trademark in a manner likely to cause confusion. Courts balance the interests of traders, consumers, and fair competition while deciding such disputes.

Questions

Q1. “FreshGlow” is a registered trademark for skincare products. A new company launches similar skincare products under the mark “FreshGlo”. Several customers mistakenly purchase the new products believing them to be associated with FreshGlow.

Which of the following is the most appropriate legal conclusion?

A. There is no infringement because the spelling is different.
B. There is no infringement unless both companies are located in the same city.
C. There is no infringement because both products are genuine skincare products.
D. There may be infringement because the marks are deceptively similar and likely to confuse consumers.

Q2. A pharmaceutical company sells a medicine under the registered trademark “CureFast”. Another company introduces a medicine called “KureFast”. Evidence shows that patients and pharmacists have confused the two medicines.

Which principle is most relevant?

A. Similarity is irrelevant in pharmaceutical products.
B. Greater caution is required where confusion in medicinal products may affect public health.
C. Trademark law protects only logos and not names.
D. Confusion must be proved only after actual injury occurs.

Q3. A famous international sportswear brand “SpeedRun” has not opened any stores in India. An Indian company starts selling shoes under the same name. The international brand has a significant reputation among Indian consumers through advertisements and online presence.

What is the likely outcome?

A. The international brand may claim protection based on its reputation among Indian consumers.
B. The international brand cannot claim any rights because it has no physical store in India.
C. The Indian company automatically becomes the owner of the mark in India.
D. Trademark rights arise only after manufacturing products in India.

Q4. A customer sees two competing brands, “NutriPlus” and “NutriPluss”. The customer quickly purchases one product believing it to be the other. The court applies the test of an average consumer with imperfect recollection.

Which decision is most likely?

A. The court will compare the marks letter by letter with scientific precision.
B. The court will consider only the intentions of the defendant.
C. The court will assess whether an ordinary consumer is likely to be confused.
D. The court will ignore consumer perception entirely.

Q5. A registered trademark owner discovers that another trader is using a highly similar mark on identical goods. No evidence of actual customer confusion is available yet, but confusion is likely.

What should a court most likely do?

A. Dismiss the claim because actual confusion has not occurred.
B. Allow use of the mark until consumers complain.
C. Permit use if the trader acted in good faith.
D. Grant relief if the mark is deceptively similar and likely to cause confusion.

Answers and Explanations

Q1. Answer: D

Trademark infringement can occur even where spellings differ slightly. The key question is whether consumers are likely to be confused. “FreshGlow” and “FreshGlo” are deceptively similar and may mislead purchasers.

Q2. Answer: B

Following the principle recognised in Cadila Health Care, courts adopt a stricter approach in pharmaceutical cases because confusion may have serious consequences for public health.

Q3. Answer: A

The principle of trans-border reputation, recognised in Whirlpool, allows a well-known foreign trademark to receive protection even without extensive physical presence in India.

Q4. Answer: C

As held in Amritdhara Pharmacy, courts evaluate similarity from the viewpoint of an average consumer with imperfect recollection rather than conducting a technical comparison.

Q5. Answer: D

Trademark law aims to prevent consumer confusion before harm occurs. A likelihood of confusion can be sufficient for a court to grant relief, even without proof of actual confusion.