Asia Securities enjoins Asia Capital Stockbrokers from trading, using the word ‘Asia’

Saturday, 13 May 2023 00:20 - - {{hitsCtrl.values.hits}}

The Commercial High Court granted two Enjoining Orders on 10 May upon an Application made by Asia Securities, preventing Asia Capital Stockbrokers, and Asia Capital PLC from using the word ‘Asia’ or any derivation of it, in any venture in the stockbroking business as a trademark or tradename and further enjoining Asia Capital Stockbrokers from trading on the Colombo Stock Exchange as a stockbroker using in its name the words ‘Asia’.

The Plaintiff, Asia Securities, submitted that their intellectual property rights were infringed by the Defendants, Asia Capital Stockbrokers, and Asia Capital PLC by using the word ‘Asia’ in their corporate names in the stockbroker business.

Asia Capital, being a former shareholder of the Plaintiff Company, undertook not to utilise the Trademarks of the Plaintiff or any derivations of it or the words “Asia Securities” or “Asia” in any business venture carried out by them or their Affiliates, when selling their shares in the Plaintiff Company.

Since the sale, the Plaintiff has become a leading stockbroker in Sri Lanka, being ranked as the No. 1 stockbroker in Sri Lanka this year by the CSE in terms of exchange trading turnover and has won many accolades and awards, resulting in its name being associated with goodwill and reputation.

The Plaintiff stated that several years after the sale, Asia Capital acquired another stockbroking firm by the name of ‘Nawara Securities’ and changed its name to Asia Capital Stockbrokers, acting in contravention of these contractual obligations. As a result, Asia Capital Stockbrokers, issued an Undertaking that it would change its name and until such time will not carry on any business in direct conflict with the Plaintiff.

However, contrary to its undertaking and several assurances given since then, the Plaintiff alleges that Asia Capital Stockbrokers, continued to trade on the CSE and carry out business activities without changing its name as promised, constituting an act of unfair competition infringing their intellectual property rights.

Having heard the submissions made by counsel appearing for the Plaintiff, Avindra Rodrigo P.C. with Christina Hettiarachchi instructed by FJ&G de Sarams, the Judge of the Commercial High Court Pradeep Hettiarachchi granted the enjoining orders sought by the Plaintiff, restraining Asia Capital PLC and Asia Capital Stockbrokers, from using the word ‘Asia’ in any venture in the stockbroking business and further restraining Asia Capital Stockbrokers, from trading in the CSE as a stockbroker using the word ‘Asia’ in the name.