Creative Technology v Cosmos Trade-Nology: Trade Mark Infringement & Damages
In Creative Technology Ltd v Cosmos Trade-Nology Pte Ltd, the High Court of Singapore heard an inquiry into damages suffered by Creative Technology due to Cosmos Trade-Nology's infringement of their registered trade marks. The court, presided over by Assistant Registrar Dawn Tan Ly-Ru, found in favor of Creative Technology, awarding damages for loss of business profits and damage to business reputation and goodwill. The court considered the defendants' infringing acts and the inferior quality of the counterfeit sound cards in assessing the damages.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for Plaintiff; damages awarded for trade mark infringement.
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 for trade mark infringement. The court awarded damages for lost profits and damage to business reputation.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Creative Technology Ltd | Plaintiff | Corporation | Judgment for Plaintiff, Judgment for Plaintiff | Won, Won | Daniel Chia |
| Cosmos Trade-Nology Pte Ltd | Defendant | Corporation | Claim Dismissed | Lost | |
| Huang Wen-Lei | Defendant | Individual | Claim Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Dawn Tan Ly-Ru | Assistant Registrar | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Daniel Chia | Wong and Leow LLC |
4. Facts
- Creative Technology is a market leader in digital entertainment products.
- Creative Technology owns registered trade marks for its “Vibra 128” line of sound cards.
- Cosmos Trade-Nology sold counterfeit sound cards bearing Creative Technology's trade marks.
- The counterfeit sound cards were of inferior quality compared to the genuine articles.
- Creative Technology experienced a decline in sales during the period Cosmos Trade-Nology was selling counterfeit sound cards.
- The second defendant pleaded guilty to eight charges and was sentenced to a fine of $800,000.
5. Formal Citations
- Creative Technology Ltd v Cosmos Trade-Nology Pte Ltd, Suit 68/2003, NA 84/2003, [2004] SGHC 5
- Creative Technology Ltd v Cosmos Trade-Nology Pte Ltd, , [2003] SGHC 188
6. Timeline
| Date | Event |
|---|---|
| Cosmos Trade-Nology Pte Ltd incorporated. | |
| Creative Technology Ltd launched the “Vibra 128” line of sound cards. | |
| Cosmos Trade-Nology sold one counterfeit sound card to a private investigator for $9. | |
| Cosmos Trade-Nology sold 3,145 counterfeit sound cards to a private investigator for $30,388.35. | |
| Cosmos Trade-Nology sold one counterfeit sound card to a private investigator for $9. | |
| Police conducted raids on Cosmos Trade-Nology's premises and seized infringing sound cards. | |
| Creative Technology issued a Writ endorsed with a Statement of Claim against Cosmos Trade-Nology. | |
| Creative Technology filed their list of documents and affidavits. | |
| Belinda Ang J issued a judgment in favor of Creative Technology. | |
| Judgment reserved. |
7. Legal Issues
- Trade Mark Infringement
- Outcome: The court found the defendants liable for trade mark infringement.
- Category: Substantive
- Damages Assessment
- Outcome: The court assessed damages for loss of business profits and damage to business reputation and goodwill.
- Category: Procedural
8. Remedies Sought
- Injunction
- Delivery up or destruction of infringing reproductions
- Discovery of acts of infringement
- Inquiry as to damages or account of profits
- Payment of sums found due
9. Cause of Actions
- Trade Mark Infringement
10. Practice Areas
- Intellectual Property Litigation
- Commercial Litigation
11. Industries
- Technology
- Consumer Electronics
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Dormeuil Frères v Feraglow | N/A | Yes | [1900] RPC 449 | N/A | Cited to establish that damages for trade mark infringement are the same as for passing off. |
| Leather Cloth v Hirschfeld | N/A | Yes | (1865) LR 1 Eq 299 | N/A | Cited to support the proposition that it cannot be presumed that the amount of goods sold by the defendant under an infringing trade mark would have been sold by the plaintiff. |
| General Tire v Firestone | N/A | Yes | [1976] RPC 197 | N/A | Cited to support the proposition that damages are to be assessed liberally. |
| Draper v Trist | N/A | Yes | [1939] 3 All ER 513 | N/A | Cited to support the proposition that there is a presumption in law that the presence on the market of a quantity of deceptive goods will have an adverse effect on the plaintiff’s business. |
| Cassell v Broome | N/A | Yes | [1972] AC 1027 | N/A | Cited for the meaning of the expression 'at large' in the context of damages. |
| Dootson Investment Corporation & Anor v Highway Video Pte Ltd | N/A | Yes | [1998] 1 SLR 497 | Singapore | Cited for the meaning of the expression 'damages at large' and how to assess them. |
| Ong Seow Pheng v Lotus Development Corp | N/A | Yes | [1997] 3 SLR 137 | Singapore | Cited to support the proposition that damages for loss of business profits and damages at large can be fused together in an appropriate case. |
| Alexander v Henry | N/A | Yes | (1895) 12 RPC 360 | N/A | Cited to support the proposition that further damages could be awarded for loss of business reputation and goodwill. |
| Aktiebolaget Manus v Fullwood | N/A | Yes | (1954) 71 RPC 243 | N/A | Cited for the method of forming a 'rough estimate' of a 'fair and temperate sum' to compensate the plaintiffs for the injury they have suffered. |
| Creative Technology Ltd v Cosmos Trade-Nology Pte Ltd | High Court | Yes | [2003] SGHC 188 | Singapore | This is the earlier judgment in the same case, establishing the infringement. The current judgment is an inquiry into damages. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Trade mark infringement
- Counterfeit sound cards
- Inquiry as to damages
- Loss of business profits
- Loss of business reputation
- Goodwill
- Damages at large
15.2 Keywords
- trade mark
- infringement
- damages
- sound cards
- creative technology
- cosmos trade-nology
16. Subjects
- Intellectual Property
- Trade Marks
- Damages
17. Areas of Law
- Trade Mark Law
- Intellectual Property Law
- Civil Procedure