In the case of MSC Software Corporation & Anr Vs. S. Ramanathan & Anr CS(COMM) 1675/2016 & IA No.16124/2016 at the High Court of Delhi, the Plaintiffs (“MSC Software”) claimed that the Defendant, Automotive Test Systems (“ATS”), was using its software without any license or authorization which amounted to infringement of its rights over the software. It prayed before the court for: (a) an order of permanent injunction against ATS, (b) an order for recovery of damages, including any commercial benefit drawn by ATS from such unauthorized use.

ATS contended that it did not permit anyone in its office to use or download any pirated/unlicensed software. However, when it received a notice from MSC Software and conducted an internal enquiry, it found that one of its trainees had used the software for his personal projects. ATS immediately directed the software to be deleted. ATS admitted that it was in fact one of its employees who downloaded the software for a trainee, and that it did not require the software in any of its own business activities. Hence it agreed to suffer a decree for injunction as sought by the MSC Corporation.

MSC Corporation further stated that ATS should either buy its software now or pay about INR 77 lacs to it as a compensation for the past unauthorised use of the software. MSC Corporation argued that the very fact that there was an infringement entitled it to damages. However, the Court observed that whether ATS has drawn commercial benefit from use of the software was to be proven sufficiently before imposing damages on ATS. Since MSC Corporation did not produce any such proof, the Court did not deem it fit to award a decree of damages.

In view of the above, the Court decreed the suit in favour of MSC Corporation and stated that costs equal to value of the court fees paid on the plaint and professional fee/expenses in the sum of Rs. 1.5 lacs be paid by the ATS rather than damages.

Compiled by: Adv. Sachi Kapoor | Concept & Edited by: Dr. Mohan Dewan

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