Chinese firm ordered to pay Shs3b as fine for defying court orders

KAMPALA- Court has ordered Chinese firm Comfoam Uganda Limited to pay Shs2 billion to its competitor over trademark infringement.

Justice Flavia Anglin Senoga of the Commercial Court also ordered the company to pay Shs1 billion as fine for defying court orders that restrained it from manufacturing of Comfoam mattresses that bear a similar design like that of Royal Foam manufactured by Megha Industries.

The fine to be paid by Comfoam Uganda Limited to the manufacturers of Royal Foam mattresses is in compensation for damages and compensation that Megha Industries sought through their lawyer Owen Murangira while Shs1 billion is punishment for disobeying court orders.

The court orders resulted from an application by Megha Industries, through their lawyer Owen Murangira, in which they accused Comfoam Uganda Limited of continuing to manufacture and sell mattresses with similar disputed covers.

Mr Murangira argued that the Chinese firm acted in disobedience of a court order issued in 2011 stopping the continued manufacture, sell and distribution of its mattresses as being those belonging to Megha Industries.

“That the respondent’s continued actions of manufacturing mattresses with the infringing cover design as mattresses, manufacture and sold by the applicant has led to drastic decline in the applicant’s sales, has damaged invaluable good will and reputation as well as the strong market position in respect of its mattresses and this particular mattress cover which is known by its distinguishing features,” he argued.

SOURCE: Daily Monitor

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