The Court of Appeal has dismissed an appeal by China New Future (Uganda) Ltd and upheld a High court of Jinja ruling ordering the company to pay Shs 20 million in damages and destroy counterfeit toner cartridges bearing the trademark of Hewlett-Packard (HP).
A panel of three justices; Stella Alibateese, Byaruhanga Jesse Rugyema and Eva Luswata found that the High court, in its January 2014 judgment delivered by justice Geoffrey Namundi, was right in ruling that China New Future had infringed on HP’s trademark and engaged in “passing off” by importing toner cartridges marked with HP’s branding.
The High court had issued a permanent injunction restraining the company from using HP or Hewlett-Packard trademarks on any of its products. It also ordered the seizure and destruction of all counterfeit HP items and related materials in the company’s possession.
Although HP had sought Shs 100 million in general damages, the trial court awarded Shs 20 million, which the company appealed, arguing that the judge erred in fact and law by concluding the goods were counterfeit and by awarding damages without sufficient proof of harm.
However, the Court of Appeal rejected both arguments.
“The allegation that the toner boxes were opened in the absence of the appellant and could have been tampered with is not supported by any evidence and is a mere suspicion,” the court noted.
“What interest would the respondent have in tampering with counterfeit goods, especially those infringing on their registered trademark? I thus find that the appellant’s goods were counterfeit and were an infringement on the respondent’s trademark.”
On the issue of damages, the court reaffirmed that HP had demonstrated infringement and the resulting potential for loss, justifying the compensation awarded.
“I am unable to fault the learned trial judge for exercising his discretion to award general damages and costs… I therefore find no reason for setting aside the award of general damages,” the ruling added.
