Background of the Case:

Pakistan Services Limited (PSL), a company that owns PC hotel, filed an application under Section 32 of the Competition Act, 2010 (here in after the “Act”) seeking interim relief in the matter of prima facie deceptive marketing practices by two companies using the brand name and logo of PC Hotel without any authorization.

PSL had filed a formal complaint under the Act alleging that Omni Comm and Lucky Gold were running their hotels under the brand name of “PC Hotel” in Abbottabad and Faisalabad, respectively, without any authorization, thus not only harming its business interests but also deceiving consumers.

Although PSL had granted franchises to the Omni Comm for a four star hotel in Abbottabad and Lucky Gold for a four star hotel in Faisalabad, it had later on the agreements due to the non-fulfillment of the minimum requirements prescribed by PSL. Despite termination of the business agreements, the two companies were still using the trade name and logo of PC Hotel at their respective hotels.

The Enquiry Committee found that Omni Comm and Lucky Gold were prima facie fraudulently using the brand name and logo of PSL. Therefore, Show Cause Notices were issued to the two companies.

Meanwhile, PSL filed an application with the Competition Commission of Pakistan (herein after “CCP”) seeking an Interim order in the case to prevent further damage to its business and goodwill until CCP concludes its proceedings. After hearing the parties.

Foreign Judgments relied upon by the Counsels:

Colgate Palmolive vs. Anchor Heal and beauty (27) PTC 478 DEL

Order:

The bench held that as is evident from Section 32 of the Act, an interim order can only be passed upon satisfaction of following conditions:

(i) Final Order in the proceedings is likely to take time,

(ii) a situation exists or is likely to emerge,

(iii) As a consequence of the above situation serious or irreparable damage may occur, and

(iv) interim Order is necessary in the public interest, and

(v) after providing an opportunity of hearing to the concerned undertakings

The Commission held that the primafacie findings of the Enquiry Report along with the evidence available on the record, which inter alia include the registration certificates and the images of the Hotel owned and operated by the Respondent, presented by the Complainant's Counsel showed that the Respondent was using the registered trademark of the Complainant.

The bench passed an interim order directing Omni Comm (Pvt.) Limited and Lucky Gold (Pvt.) Limited to immediately stop using Pakistan Services Limited trade mark “PC” and “Pearl Continental” for the branding of their hotels anywhere without the authorization and approval of the complainant until the conclusion of the proceedings and issuance of the final order. The bench directed Omni Comm (Pvt.) Limited and Lucky Gold (Pvt.) Limited to submit a compliance report with the Commission within seven days.

In its Order, CCP recognized that part of any business’s identity is the goodwill it has established with consumers, while part of a product’s identity is the reputation it has earned for quality and value. In a larger sense, trademarks promote initiative and enterprise worldwide by rewarding the owners of trademarks with recognition and financial profit.

Trademark protection also deter unfair competitors, such as counterfeiters, to use similar distinctive signs to market inferior or different products or services. This enables people with skill and enterprise to produce and market goods and services in fair conditions, thereby facilitating international trade.

Current Status:

In the instant matter, the Undertaking has submitted a writ petition before the Honorable Peshawar High Court (Abbottabad Division), the matter is still pending as the relevant Bench is yet to be constituted.