DIMO action against Arabian Motors settled

The Colombo Commercial High Court recently vacated the enjoining order made against the defendant, Arabian Motors ( Pvt) Ltd and its Director Suraj Dandeniya, in a case filed by Diesel and Motor Engineering PLC (DIMO) after both parties agreed to a settlement which was then endorsed by the court.

The agreed settlement is that the defendant and/ or Director Mr. Dandeniya shall not use the word ‘dealer’ through which the plaintiff is identified in all advertisements in respect of Mercedes Benz and “Merc-shop”.

The defendant may use “Merc-shop” without using the Mercedes Benz three star trademark. In the event the Mercedes Benz three star trademark is used with “Merc-shop” such use has to be together with the trademark BMW, Jaguar, Audi ( a minimum of three marks to be present) where all marks would be in the same size of the graphical representations as given in the court order.

The plaintiff had complained to court that the defendant is running an automobile workshop under the name of Merc shop and has engaged in unfair competition by attempting to piggyback on the plaintiff ’s goodwill by using the name Merc-shop along with the well-known Mercedes Benz trademark without any reference to the defendant’s actual trade name and thereby attempting to dilute the goodwill and attempting to unlawfully solicit the plaintiff ’s customers.

The matter was settled before Commercial High Court Judge Ruwan Fernando.