Trap Purchases and Manufactured Jurisdiction in Indian IP Litigation A study of SML Ltd. v. M/s Happy Agro Chemicals and the doctrine of trap transactions Introduction In intellectual property disputes, few procedural issues matter as much as deciding where a case can be filed. The choice of court often shapes the entire journey of the case — from how quickly interim orders are granted, to the attitude of the local lawyers, to the practical burden placed on a defendant who must fight far from home. Because the forum is so important, plaintiffs sometimes try to influence it. The most common method is the trap purchase : a test buy arranged by the plaintiff, where an investigator pretends to be a regular customer, purchases the allegedly infringing product, and keeps the invoice and packaging. Later, this evidence is used not only to show infringement but — more controversially — to argue that the cause of action arose within the territory of the chosen court. Tra...
Supreme Court Clarifies Scope of Mandatory Pre-Institution Mediation in Continuing IP Infringement Cases
Summary The Supreme Court held that the mandatory pre-institution mediation requirement under Section 12A of the Commercial Courts Act, 2015 cannot be mechanically applied to intellectual property infringement cases involving continuing violations, establishing a five-point test to determine when suits 'contemplate urgent interim relief' and thereby qualify for exemption from mandatory mediation. Background and Legal Framework Section 12A of the Commercial Courts Act, 2015, mandates pre-institution mediation for all commercial suits, requiring parties to attempt settlement through mediation before approaching the court. However, the provision contains an exception: suits that "contemplate any urgent interim relief" are exempt from this mandatory mediation requirement. The present case arose from an intellectual property dispute where Novenco Building and Industry A/S filed a patent and design infringement suit against Xero Energy Engineering Solutions Pvt. Ltd. The ...