Kapil Wadhwa v. Samsung Electronics Co. Ltd

Parallel importation is lawful in India — trademark rights do not extend to controlling resale of genuine goods.

Summary

This case is a landmark Indian decision on parallel imports and trademark exhaustion. The dispute arose when Samsung sought to restrain Kapil Wadhwa from importing and selling genuine Samsung products that were lawfully purchased abroad but sold in India without Samsung’s authorization. The Delhi High Court examined whether trademark law allows a brand owner to prevent resale of genuine goods once they have been lawfully placed in the market.

Facts of the Case

Kapil Wadhwa and related entities imported genuine Samsung printers and cartridges from overseas markets and sold them in India at lower prices. Samsung argued that although the goods were genuine, their import and sale violated Samsung’s trademark rights because they were not meant for the Indian market and lacked local warranties. Samsung claimed this amounted to trademark infringement and unfair competition. Kapil Wadhwa contended that once genuine goods are sold by or with the consent of the trademark owner, the trademark owner’s rights are exhausted.

Findings / Reasoning

The Delhi High Court held that India follows the principle of international exhaustion under the Trade Marks Act. The Court observed that trademark law is intended to prevent consumer deception, not to create perpetual control over distribution channels. Since the goods were genuine and clearly identified as imported products, there was no misrepresentation as to origin. However, the Court noted that adequate disclosure must be made regarding lack of warranty or differences in after-sales services to avoid consumer confusion.

Suggestions / Observations

The judgment clarified that trademark owners cannot use trademark law to block legitimate parallel imports of genuine products. At the same time, importers must act transparently and ensure consumers are not misled about warranties, service support, or product specifications. The decision promotes market competition while safeguarding consumer interests.

Judgment & Date

The Delhi High Court permitted parallel importation of genuine Samsung goods, subject to proper disclosure to consumers. Samsung was restrained from preventing such imports purely on trademark grounds.

Judgment Date : 13 July 2012