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Bombay HC imposes INR 5 crore penalty for forging seamless tube brand as Nippon Steel

Steel News - Published on Fri, 26 Apr 2019

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Mumbai Mirror reported that the Bombay High Court has imposed a record cost of INR 5 crore on three individuals exporting seamless pipes under the name of Nippon Steel & Sumitomo Metal Corporation, so that an example is set and it acts as a deterrent for whoever may be doing or planning to do such things. Justice SJ Kathawalla, in an order passed earlier this month but made available on Tuesday, quoted Mahatma Gandhi, saying, “There is a sufficiency in the world for man’s need but not for man’s greed. The present case is the quintessential illustration of the extent to which a few unscrupulous persons, such as the present defendants, can go, in order to make a quick buck. It is utterly unfortunate that such people have absolutely no regard for ethics or principles and in the bargain they make an irreparable dent to the reputation of our country.”

The court has directed that the entire money be paid to Tata Memorial Hospital, after the litigant company Nippon Steel & Sumitomo Metal Corporation stated that it had no objection if the money was given away in charity.

According to Nippon’s lawyers, the company came to know of the infringement only when they received a complaint from Saudi Arabia-based YANBU Steel Company. When the HC appointed a court receiver and directed an inspection of the trio’s offices and warehouse, it was discovered that the accused were not simply infringing the trademark, but were in fact indulging in forgery.

The operations of Jain and Burad involved buying pipes from local manufacturers, imprinting Nippon’s logo on it, attaching an inspection report affirming the quality of the pipes purportedly issued by Nippon itself and then exporting the stuff.

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Posted By : Rabi Wangkhem on Fri, 26 Apr 2019
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