Tanzanian court bars local trader from selling Havells products in trademark dispute
What you need to know:
- The injunction comes after a Fair Competition Commission (FCC) raid on Mr Ntabwa’s premises in March 2022, during which counterfeit Havells products were seized, and Mr Ntabwa was fined, according to the judgement
Dar es Salaam. A Tanzanian court has ordered a local businessman to cease dealing in products bearing the ‘Havells’ brand pending the conclusion of a trademark infringement dispute.
Havells India Ltd, a leading Indian electrical goods manufacturer, filed a case with the Commercial Division of the High Court of Tanzania, requesting a temporary injunction against Tanzanian businessman Lameck Moris Ntabwa, who is alleged to have imported and distributed counterfeit products bearing the company’s trademark.
Havells India Ltd which has been supplying electrical products to Tanzania for about two decades now, accuses Mr Ntabwa of distributing counterfeit versions of its branded electrical products, including circuit protection devices.
Havells claims that the counterfeit products closely resemble its genuine items, causing confusion and posing significant risks to both its reputation and the safety of its customers.
The ruling, delivered by Justice A. H. Gonzi on September 6, 2024, prohibits Mr Ntabwa from manufacturing, selling, or distributing any products bearing the Havells trademark until the conclusion of the main suit.
“Pending determination of Commercial Case No. 5455 of 2024, a temporary injunction has been imposed against the respondent, restraining him, along with his agents, partners, affiliates, assigns, or servants, from manufacturing, selling, importing, exporting, or commercially dealing in any manner with counterfeit electrical goods and power distribution equipment bearing the ‘Havells’ trademark in the Tanzanian market,” stated the judge in the ruling.
The injunction comes after a Fair Competition Commission (FCC) raid on Mr Ntabwa’s premises in March 2022, during which counterfeit Havells products were seized, and Mr Ntabwa was fined, according to the judgement.
Havells claims Mr Ntabwa admitted to dealing in counterfeit goods but has continued to sell fake products bearing the Havells trademark.
In deciding to grant the injunction, Judge Gonzi applied the three-part legal test for temporary relief: a prima facie case, potential for irreparable harm, and balance of convenience.
The judge concluded that Havells had demonstrated a prima facie case, citing evidence of previous FCC enforcement actions and fines against Mr Ntabwa, which suggested ongoing risks to Havells’ brand.
The court also ruled that Havells would likely suffer irreparable harm if counterfeit sales continued, as the damage to its reputation could not be compensated financially.
The court also found that the balance of convenience favoured Havells, given that the company is the legitimate owner of the trademark and has established goodwill in Tanzania.
Judge Gonzi noted that the injunction would prevent further brand dilution, while Mr Ntabwa would not be significantly affected if he is indeed uninvolved with Havells-branded products, as he claims.
Havells legal counsel Roma Arora and Harsh Agarwal welcomed the ruling, saying the decision will not only reaffirm the client’s trademark rights but also prevent a situation where the registrant would have profited from its “bad faith actions.”
“This ruling is a victory for both Havells and Tanzanian consumers. It sends a strong message about the importance of intellectual property rights and the seriousness of brand integrity,” the counsel stated.
