Supreme Court Empowers Companies as "Victims" in IPR Cases

The Supreme Court's recent judgement has set a significant legal precedent, affirming that companies can be regarded as 'victims' and have the right to appeal against acquittal orders in criminal cases, particularly those concerning intellectual property rights (IPR). This ruling comes after Asian Paints, a leading paint manufacturer, challenged the Rajasthan High Court's decision dismissing its appeal related to the acquittal of Ram Babu, accused of selling counterfeit products.

The bench, comprising Justices Ahsanuddin Amanullah and Prashant Kumar Mishra, clarified that under Section 2(wa) of the Code of Criminal Procedure (CrPC), both natural and juristic persons can be considered victims if they suffer loss or injury due to an alleged offense. This legal interpretation allows businesses to actively pursue criminal proceedings when their intellectual property and brand reputation are compromised.

This case began when Asian Paints' IPR consultancy firm discovered fake products with their trademark in a Rajasthan market in 2016, leading to police action. Although Ram Babu was acquitted in the trial, the Supreme Court's decision now provides Asian Paints and similar companies a clear pathway to appeal against judicial decisions that disregard the financial and reputational harm caused by counterfeiting.

(With inputs from agencies.)