Creative Technology Ltd v Cosmos Trade-Nology Pte Ltd: Trademark Infringement & Director's Liability

Creative Technology Ltd sued Cosmos Trade-Nology Pte Ltd and Huang Wen-Lai in the High Court of Singapore for trademark infringement related to counterfeit sound cards. The court granted summary judgment in favor of Creative Technology on August 26, 2003, finding that Cosmos Trade-Nology infringed Creative Technology's trademarks by selling counterfeit sound cards. The court also found Huang Wen-Lai personally liable as a joint tortfeasor for inducing the infringement. The court issued restraining orders and ordered an inquiry into damages or an account of profits.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Summary judgment granted to the Plaintiff.

1.3 Case Type

Intellectual Property

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Creative Technology sued Cosmos Trade-Nology and its director for trademark infringement related to counterfeit sound cards. The court granted summary judgment for Creative Technology.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Creative Technology LtdPlaintiffCorporationJudgment for PlaintiffWon
Cosmos Trade-Nology Pte LtdDefendantCorporationJudgment against DefendantLost
Huang Wen-LaiDefendantIndividualJudgment against DefendantLost

3. Judges

Judge NameTitleDelivered Judgment
Belinda Ang Saw EanJudgeYes

4. Counsels

Counsel NameOrganization
Daniel ChiaWong & Leow LLC
Palanaippan SundararajStraits Law Practice LLC

4. Facts

  1. Creative Technology Ltd is a manufacturer of digital entertainment products.
  2. Cosmos Trade-Nology Pte Ltd sold counterfeit sound cards bearing Creative Technology's registered marks.
  3. Huang Wen-Lai is a director and owns 99.99% of the shareholding of Cosmos Trade-Nology Pte Ltd.
  4. The Defendants’ Sound Cards were manufactured without the license or consent of the Plaintiff.
  5. The Defendants’ Sound Cards were sold at $9.00 each whereas the Plaintiff’s standard retail price for each Sound Card is $28.00.
  6. The police seized 56 pieces of infringing sound cards and one piece of infringing “Creative” Sound Blaster CD-ROM from the First Defendant’s retail outlet and office.

5. Formal Citations

  1. Creative Technology Ltd v Cosmos Trade-Nology Pte Ltd and Another, Suit 68/2003, SIC 1244/2003, [2003] SGHC 188

6. Timeline

DateEvent
Cosmos Trade-Nology Pte Ltd incorporated in Singapore.
Plaintiff’s private investigator purchased one unit of sound card bearing the Plaintiff’s registered marks from the First Defendant.
Plaintiff’s investigator purchased and collected 3,145 units of sound cards from the First Defendant’s office.
Plaintiff’s investigator purchased one unit of sound card from the retail outlet.
Police seized infringing sound cards and CD-ROM from the First Defendant’s retail outlet and office.
Writ of Summons issued.
Defendants filed their Defence.
Plaintiff applied for summary judgment.
Summary judgment granted to the Plaintiff.
Decision date.

7. Legal Issues

  1. Trade Mark Infringement
    • Outcome: The court found that the First Defendant infringed the Plaintiff's registered trademarks by selling counterfeit sound cards.
    • Category: Substantive
  2. Personal Liability of Director for Company's Infringement
    • Outcome: The court found the Second Defendant personally liable as a joint tortfeasor for inducing the First Defendant's infringement.
    • Category: Substantive
  3. Innocence as a Defence to Trade Mark Infringement
    • Outcome: The court held that innocence is not a valid defence in an action for trade mark infringement where injunctive relief and damages are sought.
    • Category: Substantive

8. Remedies Sought

  1. Restraining Orders
  2. Delivery up or destruction of infringing reproductions
  3. Inquiry as to damages or account of profits

9. Cause of Actions

  • Trade Mark Infringement

10. Practice Areas

  • Intellectual Property Litigation
  • Trade Mark Infringement

11. Industries

  • Technology
  • Computer Hardware

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
MCA Records Inc & Anor v Charly Records Ltd & OrsN/AYes[2000] EMLR 743N/ACited for the principle that a person who procures and induces another to commit a tort becomes a joint tortfeasor.
Gillette UK Ltd and Anor v Edenwest LtdN/AYes[1994] RPC 279United KingdomCited for the proposition that innocence is no defence in an action in infringement of a registered mark.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Trade Marks Act (Cap 332)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Trade Mark Infringement
  • Counterfeit Sound Cards
  • Joint Tortfeasor
  • Creative VIBRA 128
  • Sound Blaster

15.2 Keywords

  • Trade Mark
  • Infringement
  • Sound Card
  • Creative Technology
  • Counterfeit
  • Director Liability

17. Areas of Law

Area NameRelevance Score
Trademark Infringement95
Trademarks90
Counterfeit Goods80
Commercial Disputes40
Judgments and Orders30
Fraud and Deceit30
Inducement of Breach of Contract20
Accounting and Inquiry20
Account of Profits20
Damages20
Contract Law20

16. Subjects

  • Intellectual Property
  • Trade Marks
  • Infringement