Delhi High Court: Party under Injunction Must Follow 'Safe Distance Rule'
In a recent ruling, the Delhi High Court held that a party subject to an interim injunction must follow the "safe distance rule" with respect to the subject matter of the suit. The court stated that the party must ensure that it does not commit any acts that could be construed as violating the court order.
The division bench of Justices Vibhu Bakhru and Amit Mahajan also clarified what constitutes patentable subject matter under Indian law. They explained that a known product specifically modified and configured to provide a specified result of economic value would be considered patentable as a new product.
The ruling came during an appeal filed by Ace Technologies Corporation, a South Korea-based company, challenging an order passed by a single judge in a patent infringement suit filed by Communication Components Antenna Inc (CCAI). The single judge had ordered Ace to secure INR 54.5 Crore as a bank guarantee and cash deposit, failing which an injunction would follow.
The division bench upheld the single-judge's order, rejecting all grounds of invalidity raised by Ace Technologies. However, the bench permitted the respondents to deposit a bank guarantee for 10% of the sale proceeds instead of depositing the same in cash with the Registrar of the Court.
Ace Technologies was represented by Senior Advocate Sandeep Sethi, while CCAI was represented by Senior Advocate Gaurav Pachnanda.
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TAGS: Delhi High Court interim injunction safe distance rule patentable subject matter infringement Ace Technologies Corporation Communication Components Antenna Inc patent bank guarantee cash deposit invalidity ruling.
