Commercial High Court issues enjoining orders against Arabian Motors

The Commercial High Court yesterday issued two enjoining orders against Arabian Motors Ltd. upon hearing a complaint filed by Diesel And Motor Engineering Plc (DIMO), which is the sole authorised distributor and dealer of Mercedes Benz automobiles.

The plaintiff through their complaint dated 25 September 2017, told the Court that Arabian Motors Ltd, which was running an automobile workshop under the name of Merc-Stop, has engaged in unfair competition by attempting to piggyback on the plaintiff’s goodwill by using the name Merc-Stop along with the well-known trademark Mercedes-Benz without any reference to the defendant’s actual name, i.e. Arabian Motors Ltd. 

DIMO further complained to court that through the use of the advertising slogan ‘Better Option than the Dealer’, Arabian Motors Ltd. has attempted to tarnish the reputation of DIMO as the sole authorised distributor and dealer for Mercedes-Benz in Sri Lanka.

The plaintiff was represented in court by Dr. Harsha Cabral, President’s Counsel, who appeared with counsels Nishan Premathiratne and Pravi Karunaratne instructed by Julius and Creasy Attorneys-at-Law. 

DIMO, through its legal team, submitted to the court that DIMO has been the sole distributor and dealer for Mercedes-Benz for a period over 78 years and has gained the trust and confidence of the Sri Lankan public. Thus, Arabian Motors Ltd. is attempting to dilute the goodwill of DIMO and thereby attempt to unlawfully solicit DIMO’s customers.

Commercial High Court Judge Ruwan Fernando, being satisfied with the submissions made on behalf of the plaintiff, granted two enjoining orders preventing the defendant directly or indirectly using the getup Merc-Stop and the Mercedes Benz trademark  together without any reference to the defendant’s trade name Arabian Motors and also preventing the defendant from using the word dealer or any other word closely resembling the plaintiff in advertisements effected in respect of Mercedes Benz products or services in any manner whatsoever. The case will be called again on 11 October 2017.