Published On : Fri, Jun 10th, 2016

Unscrupulous traders infringe on brand name and goodwill earned over years



Nagpur: One of the reputed traders dealing with sale of Mobile Phones, Lap-tops, Notebooks and other multimedia products in the city named City Collection had recently lodged a complaint with the Economic Offenses Wing of Nagpur Crime Branch alleging that many mobile shops have come-up with similar nomenclature “City Collection” with a slight change as prefix or suffix to that which is affecting their trade adversely.

The owner of City Collection Mohammed Javed Sharif also alleged that these traders are misusing the good-will that their business establishment has earned over many years and claiming their shops and business establishment to be branches of their shop are selling mobile phones at exorbitant rates. Mohammed Javed Sharif also claimed that they have acquired or purchased genuine products and have been selling genuine products at approved rates after paying all the taxes including VAT etc.j


Infringement of Trademark is the unauthorized use of a trademark or service mark on or in connection with goods and/or services in a manner that is likely to cause confusion, deception, or mistake about the source of the goods and/or services.

On the basis of the complaint lodged by the owner of City Collections, under the directions of Additional Commissioner of Police (Crime) Ranjan Kumar Sharma, cops of Sitabuldi Police Station raided all those shops who had directly or indirectly infringed upon the brand name. Nearly 10 owners of such shops were also arrested.
Taking serious cognizance of this infringement of brand-name, the courts not only permitted the filing of the case and the hearing of the case, they also sent 10 such unscrupulous traders to Central Jail pending the investigation into their case.b

Advocate Marshetiwar and Advocate R P Joshi were aiding the Public Prosecutor on the prosecution side, while Advocate Nankani and Advocate Tehrani were representing the accused traders.

While speaking to Nagpur Today, President of Sitabuldi Traders Association Hussain N Ajani said that they had filed the case many times with Sitabuldi Police Station. However the cops ignored it. However, on March 7, 2016, cops of the Sitabuldi Police Station registered the case and under the directions of Additional Commissioner of Police (Crime) Ranjan Sharma, Sitabuldi cops raided as many as thirteen shops. They arrested 10 offenders who had not only copied the registered name of City Collections (which was a registered trade-mark and symbol).c

Many of these unscrupulous traders issue printed bills to customers with a rubber stamp in the middle of the bills claiming their shops to be a branch of main ‘City Collections.’

Apart from that owner of City Collection Mohammed Javed Sharif also said that these traders also indulge in unfair trade practices. He claimed that some of the dedicated mobile models of the following companies are available only for on-line sale. They include:

1. Xolo EG-9
2. J5-16
3. J7-16
4. K-4 Note
5. Mottorola
6. Xiomi
7. Red Mi Note
8. P1, P1m Lenovo
9. Honour Holi
10. One+1
11. One+2
12. One+Xd

He alleged that these traders travel all the way to places like Kashmir from where they procure and bring mobile phones into the city paying zero% VAT. These unscrupulous traders also save inter-state tax of 12.5%.
Now when they did not purchase these products officially, they do not need to pay any taxes (around 4% VAT) for the sale of these products. Therefore in all, these traders are evading from paying taxes to the tune of 16.5%.
Mohammed Javed Sharif also alleged that they published a public notice in many newspapers dated March 9, 2014 cautioning the citizens from becoming victims of these unscrupulous traders.

After the raid and action initiated by the Nagpur Crime Branch, many traders have removed the offending words “City Collection”. Till the time of filing the story, all the accused who were arrested and sent on MCR have obtained bail and are out.e