Case Law[2023] ZAKZDHC 40South Africa
Fuel Trailers (Pty) Ltd t/a Trailers and Tankers v St Logistics (Pty) Ltd t/a Jikelele Tankers and Trailers (D9292/2021) [2023] ZAKZDHC 40 (14 June 2023)
High Court of South Africa (KwaZulu-Natal Division, Durban)
14 June 2023
Headnotes
telephone devices (landline system).
Judgment
begin wrapper
begin container
begin header
begin slogan-floater
end slogan-floater
- About SAFLII
About SAFLII
- Databases
Databases
- Search
Search
- Terms of Use
Terms of Use
- RSS Feeds
RSS Feeds
end header
begin main
begin center
# South Africa: Kwazulu-Natal High Court, Durban
South Africa: Kwazulu-Natal High Court, Durban
You are here:
SAFLII
>>
Databases
>>
South Africa: Kwazulu-Natal High Court, Durban
>>
2023
>>
[2023] ZAKZDHC 40
|
Noteup
|
LawCite
sino index
## Fuel Trailers (Pty) Ltd t/a Trailers and Tankers v St Logistics (Pty) Ltd t/a Jikelele Tankers and Trailers (D9292/2021) [2023] ZAKZDHC 40 (14 June 2023)
Fuel Trailers (Pty) Ltd t/a Trailers and Tankers v St Logistics (Pty) Ltd t/a Jikelele Tankers and Trailers (D9292/2021) [2023] ZAKZDHC 40 (14 June 2023)
Download original files
PDF format
RTF format
make_database: source=/home/saflii//raw/ZAKZDHC/Data/2023_40.html
sino date 14 June 2023
SAFLII
Note:
Certain
personal/private details of parties or witnesses have been
redacted from this document in compliance with the law
and
SAFLII
Policy
FLYNOTES:
INTELLECTUAL
– Passing off –
Unlawful
competition
–
Respondent
representing to public that it operated as part of applicant –
Whether applicant is entitled to prevent respondent
from using
trade words "Trailers & Tankers" – Respondent
knew logo was used for applicant's business
–Designed logo
with blessings of applicant – Respondent worked for
applicant – Became competitors –
To use the same logo
for its own business is prejudicial to applicant –
Tantamount to unlawful competition –
Applicant established
that orange trailer design logo was already associated with
applicant's business – Respondent
is interdicted and
restrained.
IN
THE HIGH COURT OF SOUTH AFRICA
KWAZULU-NATAL
LOCAL DIVISION, DURBAN
CASE
NO
:
D9292/2021
REPORTABLE
In
the matter between:
FUEL
TRAILERS (PTY) LTD t/a TRAILERS & TANKERS
APPLICANT
and
ST
LOGISTICS
(PTY) LTD t/a JIKELELE TANKERS &
TRAILERS
RESPONDENT
ORDER
The
following order is granted:
1.
The respondent is interdicted and restrained from passing-off or
representing
to the public at large that it operates as part of the
applicant or as being connected in the course of trade with the
applic
a
nt
,
by using in regard thereto the offending
get-up, or any get-up whi
c
h
is confusingly or deceptively similar to the applicant's distinctive
get-up
.
2.
The respondent is to desist from using the appli
c
ant's
logo
,
including
,
but not limited to the picture of the
orange tan
k
er
tra
i
ler
,
or words
,
"
Trailer
& Tankers" in the same style and on the same distinctive
logo or get-up as the appli
c
ant
or which is confusingly or deceptively s
i
milar
to the applicant's logo or g
e
t-up
.
3.
The respondent is to immediately remove from public display all
signage
containing the applicant's distinctive get-up logo which is
confusing or deceptively similar to that of the applicant at its
premises
situated at 1[...] U[...] Road
,
Springfield and anywhere else that such
may be displayed
.
4.
That the respondent immediately desists from
representing
that any products henceforth sold by the
respondent were manufactured by, sourced from
,
carry any warrantee
,
by the applicant;
5.
The respondent be ordered to immediately restore
possession
to the applicant of:
5.1
a 1 000 litre polyurethane tank;
5.2
signage displayed at 1[...] U[...] Road, Springfield
,
bearing the applicant's logo and
wording; and
5.3
a telescopic signboard on a trailer.
6.
That in the event of the respondent not restoring possession of the
above
mentioned
assets within 24
hours
of
the service of
this
order
,
that the sheriff of this Court or his
deputy is hereby authorized to uplift the assets
from
the
respondent and restore possession
thereof to the applicant.
7.
The respondent is directed to pay the
costs
of this application
,
including the costs that were reserved
on 2 November 2021. Such
costs to
include the
costs
of counsel.
This
judgment was
handed
down
electronically by circulation to
the parties
'
representatives
via email
and
released
to
SAFLII.
The
date
and t
i
me
for hand-down is
deemed
to
be 14 June 2023
at
10h00
.
JUDGMENT
Delivered
:
14
June
2023
SIPUNZI
AJ
Introduction
[1]
This is an urgent application
in
which
the applicant seeks an interdict restraining the respondent from
passing-off and from representing to the public that it operated
as
part of the applicant. The applicant alleges that the respondent is
involved in unlawful competition by passing-off. The matter
served
before this court on 2 November 2021. However
,
the application did not proceed on the
said day. Instead, the parties agreed on a timetable that regulated
further filing of papers,
the hearing was postponed sine die, and the
costs occasioned by
the
adjournment
were
reserved
for
later determination.
[2]
In the notice of motion, the applicant
sought
an
order
in
the
following
terms:
'(i)
that the respondent is interdicted and restrained from passing-off or
representing to the public
at
large
that
it
operates
as part of
the
applicant or as
being
connected in
the
course
of
trade with the applicant
,
by
using in regard
thereto
the
offending get-up
,
or any get-up which is
confusingly
or deceptively
similar
to the
applicant's distinctive
get
up
;
(ii)
that the respondent is to desist from
using
the
applicant's
logo,
as
per
annexure
"A
"
hereto, including the
picture
of the orange tanker trailer,
with
the
words
,
“
Trailer
&
Tankers”
or any va
ri
ation
thereof and the
words
“
Custom
Built Trailers & Tankers”
or
any
variation
thereof;
(iii)
that the respondent is to immediately remove from public display all
signage containing
the
applicant's distinctive
get-up
,
or
any
get-up which
is
confusing
or deceptively similar
to
the applicant's
get-up
at
its premises
situated
at
1[...] U[...]
Road,
Springfield
and anywhere
else that
such
may
be
displayed;
(iv)
that the respondent
immediately
des
i
st
from representing that
any
products
henceforth sold by the respondent were
manufactured
by,
sourced
from
,
carry
any
warrantee
,
by the applicant
;
(v)
that the respondent
be
ordered
to immediatel
y
restore
pos
s
ession
to
the
applicant
of:
(aa)
a 1000 litre polyurethane
tank
;
(bb)
a 1000 litre mild
diesel
tanker trailer
;
(notably
om
i
tted
in
the
"draft order prayed
"
that was handed
in
during oral arguments)
;
(cc)
signage d
is
played
at
1[...] U[...] Road,
Springfield
,
bearing the
applicant's
logo
and wording;
(dd)
a
telescopic
signboard
on a trailer
;
and
(ee)
2
hand-held
telephone
devices (landline system
)
.
(vi)
that in the event of the respondent not
restor
i
ng
posse
s
sion
of
t
he
above-ment
i
oned
assets within 24
hours
of
the
granting
(replaced with
's
ervice
'
during
the
arguments) of this
Order
,
then the Sheriff
of
this Court
is
hereby
authorized to uplift
the
assets
from
the respondent
and
to restore possession thereof
t
o
t
he
applicant
;
(vii)
that the respondent be directed to pay
the
costs of thi
s
application on the s
c
ale
as between Attorney and Client.'
[3]
At the time
of oral
arguments
,
and on behalf of
the
applicant
a
"draft order prayed" was
handed in. It was
identical to the
prayers
that
were
sought
in the
initial
notice
of motion.
Notably,
paragraph
(ii) of the
notice
of motion was varied or amended
.
The amended paragraph reads
:
The
Respondent is
to
desist from using the appli
c
ant's
logo, including
,
bu
t
not limited
to,
the picture of the orange
tanker
trailer
,
or
words
,
"
Trailer
&
Tanke
r
s
'
'
or any variat
i
on
there
o
f
and the words, "Custom Bu
i
lt
Trailers &
Tankers
"
or any var
i
ation
thereof in conjunction with the applicant's d
i
stinctive
logo
or get-up or any
logo
or get up wh
i
ch
is confusingly or deceptively
similar
to
the applicant's
logo or
get-up;
'.
# The
parties
The
parties
[4]
The
applicant
is
Fuel Trailers
(Pty) Ltd t/a
Trailers
&
Tankers,
a company with
limited
liability
incorporated in terms of the
laws
of the
Republic of South Africa, with
its
principal
place
of
business
at 5[...] B[...]
Road
,
lndustria North, Randburg
,
Gauteng.
It
has
been
in
business since 2007 as a manufacturer
and supplier of an assortment
of
specialized trailers and
tankers
for water and fuel.
It
sold its products through distributors
and agents in
most
Provinces
in South Africa
.
[5]
The respondent is St Logistics (Pty) Ltd t/a Jikelele Tankers &
Trailers,
a company with its principal place of business at 1[...]
U[...] Road, Durban
,
Kwa-Zulu
Natal. It commenced business in 2017, as per the company registration
number 2[...].
Background
[6]
The parties' relationship started after their first meeting in
September
2017
.
They
developed a business relationship when the respondent's members were
interested in selling the applicant's products in Kwa-Zulu
Natal. As
they engaged in their business activities
,
they first concluded a
'
Non-Disclosure
Agreement' in July 2018
.
The
material terms of this agreement included that the respondent would
sell the applicant's products only in Kwa-Zulu Natal. The
respondent
was permitted to mark-up the products sold to its benefit. As a
result of this relationship, the respondent would be
exposed to
confidential information of the applicant and undertook t
o
hold same in strict confidence.
[7]
As their business relationship grew stronger, on 23 March 2019
,
the parties concluded the
'
Inventory
Consignment' and
'
Restraint
of Trade
'
agreements.
T
hese
agreements recognised that the respondent had become exposed to the
applicant's customers; finances
,
budgets
,
business strategies
,
potential budgets
;
trade secrets and other confidential
information about the bus
i
ness
.
Among others, the respondent undertook
that for 12 months after the termination of their agreement
;
it would not carry out business or
entice any customers or suppliers of the applicant or supply or make
available to any person
any material
,
service or information forming part of
the applicant
'
s
business.
[8]
On 23 March 2020
,
the
parties entered into a Distribution Agreement. In that agreement
,
the respondent further undertook to be
an exclusive distributor of the applicant
;
to protect its business interest; and
that upon termination of the agreement
,
it would cease to utilize any of the
applicant's trademarks and logos in any way.
[9]
The applicant alleges
that
the
respondent
conducted
itself
in a manner
that
was
in breach of their agreements, which amounts to unfair
competition
and passing-off. It is also common cause
that the agreements which regulated their
relationship
had since terminated.
[10]
It is common course
that
during
the subsistence
of their
business
association or relationship
,
the
respondent
varied
or
amended
the
applicant's
logo
design by replacing the lion
'
s
head with a design of an orange trailer
.
The parties agree that the orange
trailer design was developed and created in discussions; with the
consent and co
-
operation
of the applicant. It is also
common
cause that the new
varied
logo
was
then
used on all applicant's descriptive
markings
,
including
its online advertisements and displays.
It became the identifying mark used by all agents
and
distributors
of
the applicant,
including
the respondent.
[11]
The respondent however denied that
the
applicant
acquired exclusive ownership
of this orange trailer design. The respondent
contended
that it became the owner of this
design
because it
was
originally sponsored
;
created
by one
of
its directors
/
members,
and therefore entitled to
use same in
its business that
was
not associated with the applicant. Hence
it
claimed
to
have a
better title to the use
of the
design
of the orange
trailer
that
formed part of the
applicant's
logo.
[12]
The respondent disputed that it was
the
applicant that exposed it to the Kwa
Zulu Natal client base and
contended
that it already had
its
client base when it met the applicant.
According to the respondent, there was
no
evidence
of
competition between
it and the
applicant. Its products are sourced from another manufacturer.
[13]
On the use of
the get-up
that
is similar to the applicant's
;
the
orange
colour
;
the
design
of a trailer,
and
the
words
"
Trailers
&
Tankers
",
the parties agree
on
the
similarities between the logo of the
applicant and that
of the
respondent.
Howe
v
er
,
the respondent argued that the words
'Trailers
&
Tankers
'
are
generic descriptive
terms
that were not designed
to
deceive
or
confuse
the public
or
the
customers
.
It
further
argued that their logo is
distinguished
from that
of
the
applicant
by
the word
'
Jikelele
'
.
The
issues
[14]
This court is enjoined to determine the following disputed issues:
41.1
whether the applicant is entitled to prevent the respondent from
using the trade words "Trailers & Tankers";
the design
of a tanker trailer or any variations thereof, as part of its logo;
or the colour and the get-up that the applicant
had used as its logo
or products; displays and the internet advertisement website page.
14.2
whether
the
use and display of the logo and upkeep was exclusive to the applicant
or whether after the termination of their agreements,
the respondent
was entitled to use the same logo, the font, the get-up, which
included, the orange trailer picture that replaced
the lion's head
when the respondent varied (as discussed and with the cooperation of
the applicant) the original logo; and
14.3
whether the respondent was entitled to retain the products that were
manufactured or whether that remained the property of
the applicant
after their agreements expired. The same question applied to items
displayed
or
used
at
the
respondent's premises when they were no longer in business
either
as the distributors or the agents for
the products manufactured and sold
as
part of the
applicant's
business.
# Discussion/Analysis
Discussion/Analysis
Ownership
of the logo or part of the logo and get up get-up
[15]
It
is a fact that the applicant does not possess
a
registered
trademark
on
the
use of the
words;
the
logo;
the
colour
and
the
get-up
and
the
design
the
applicant
claimed amounted to a passing-off when part of it was used and
displayed
by
the
respondent, after the expiry of their agreements. The applicant
relies on the
common
law
doctrine
of
passing-off or put differently, unfair competition.
[1]
[16]
In
Capital
Estate and General Agencies (Pty) Ltd and Others v Holiday Inns Inc
.
and
Others
[2]
;
the
court gave an admirable and authoritative defin
i
tion
of passing-off in the following terms:
'
The
wrong known as passing off consists in a representation by one person
that h
i
s
business (or mercha
n
dise
,
as the case may be)
i
s
that of another, or that it is associated with that of another
,
and, in order to determine whether a
representation amounts to a passing-off
,
one enquires w
h
ether
there is a reasonable likelihood that members of the public may be
confused into believing that the business of the one is
,
or is connected with
,
that of another'.
[17]
It is not in dispute that the respondent or its members had amended
or
v
aried
the applicant's logo during the subsistence of the
i
r
business relationship. The parties agree that the members or
directors of the respondent proposed the variation of the applicant's
logo. It was then varied or amended with the approval and consent of
the applicant. The new logo had an orange trailer design that
replaced a lion's head. It was used across the country on all the
applicant's products
;
advertisements
and displays, replaced that which had a lion's head
.
This included the premises where the
respondent was the agent or distributor of the applicant's products.
[18]
There is no evidence to suggest that the question of ownership of the
new logo or
the new addition to it, being the orange tanker trailer
,
was ever discussed in all communication
and interaction during the development of the new logo
.
This was also the case when it was sent
out to other branches of the applicant for display and use. The
ownership of the orange
trailer design, only arose when the applicant
and the respondent were no longer in a good or sound business
relationship
.
[19]
The respondent claims to be the owner of part of the new logo of the
applicant and
therefore entitled to use same in its new business
,
which is not associated with the
applicant. This is based on the contention that when the respondent
or its director proposed the
variation of the applicant
'
s
logo
,
its
director inserted its design
,
which
was an orange trailer
,
instead
of the lion
'
s
head, which was removed
.
For
this reason
,
the
respondent contends that it did not relinquish the ownership of that
trailer design to the applicant. Hence, the claim of entitlement
to
its use.
[20]
The respondent also argued that the ownership of
the
trailer design amounts to a material
dispute of fact that required determination herein.
[21]
On
the other hand, the applicant avers that it is not a material dispute
of
fact.
It
further argues that the ownership of the part of the logo is not so
significant to its
claim
and,
therefore should not be
engaged
herewith.
It further
argued
that,
if
such
is
found
to
be of any significance, it
could
be
resolved
by
applying the
Plascon-Evans
rule.
[3]
The
main question that
the
above
brings
about
is whether
there
is
in fact a material dispute of fact. If the answer to that is in the
affirmative,
in
that
case,
the
next question is whether the application of the
Plascon-Evans
rule
suffices
to
resolve
that
dispute. The respondent seems to
assert
the
contrary.
[22]
Indeed, it
seems
that
the parties are not ad
idem
that
the
issue
of
the ownership
of
the
trailer design on the applicant's logo
was
discussed
or
clarified
when they
were
still in good business relations and
during the subsistence of
their
agreements. The question that arises for
determination
is
the
ownership
of
the
trailer design on the logo
or
the
association of
the
logo
that was adopted after the trailer design
replaced
the lion
'
s
head design. In simple terms. whether the
ownership
of any
part of the logo
or
the logo in its entirety turns on
anything
in
determining
if the respondent
was
entitled
to
use the trailer design for the new business
that
was not associated with
the applicant.
[24]
To
qualify for the protection of
a
mark
or
logo
or get-up, the
court
in
Adidas
AG
and
Another
v
Pepkor
Retail
Ltd
,
[4]
gave
clear
guidelines
on
what
the
applicant
is
required to establish. Firstly,
the
applicant
would
have
to
allege
and
prove
that
the mark in question has become distinctive
,
'that
is
,
that
in
the eyes
of
the public
,
it
has
acquired a significance
or
meaning
as
a
symbol
of
a
particular origin of the goods
in
respect
of which that feature is used
'
,
i.e.
,
that
the
applicant
has
acquired
a reputation.
Secondly,
the applicant
would
have
to allege and prove
that
the
use of the mark was likely
,
or
calculated
,
to deceive and thus
cause
confusion
amongst
consumers
,
having the result of injury, actual or
probable
,
to
the goodwill of the applicant's business- for example, by
causing
a loss in the profit that the business
might have made
,
had
the respondent not used its mark
and
enticed
consumers
to its business
,
who thought they were dealing with the
applicant's business.
[25]
From the requirements
set
out
here above
,
it
is
clear
that
the applicant is not required to establish
the
ownership of the mark or any
part
thereof to claim protection from the
alleged passing-off. In short
,
all
that is explicitly required of the applicant, is to show the
association
of
the
mark or part of it or logo with
its
business
and
the probability of its use is likely
,
or calculated,
to
deceive
and
thus
cause confusion
amongst
consumers,
having
the result
of injury, actual or
probable
,
to
the goodwill
of
the
applicant's business
.
[26]
It is established that use of the new logo that had
the
orange trailer design was not confined
in Kwa-Zulu Natal
,
where
the respondent
was the distributor. Such
limited use would have been a
suggestion
that the respondent
was
the
owner
or had
a
better
title to the new logo than the applicant
or its
other
distributors
and
agents.
On the
contrary,
it
was
equally
used
on all the applicant's displa
ys;
advertisements and all its
distributors
or agents across the country from the time th
e
applicant had approved it. So, it became
a mark or logo
by
which
the applicant and its products
were
identified or distinguished from the rest. In fact
,
it meant that the
applicant
had
changed
its
lion head bearing logo for
one
with the design of
the
orange trailer
and
as
designed
by
the directors
/
members
of
the
respondent. So in other
words,
the
new logo
became
the
new identifying mark
or
logo
of
the
applicant
,
in
all
i
ts
get-up
,
displays and google
search
page
,
and
this
was regardless of who owned a
p
artic
ul
a
r
part of
it.
[27]
Therefore
,
one is
not
convinced
that
the
dispute about the ownership of
the
design is
central
to
the matters that require determination in
the
main
and
therefore is not a material dispute
of
fact. It will
therefore,
not be
necessary
to apply
the
Plascon
Evans
rule
in this matter.
# The
similarities
The
similarities
[28]
On
this point, the elements of passing-off in
Capital
Estate and General Agencies (Pty) Ltd and Others
v
Holiday
Inns
Inc.
and
Others,
as
referred to
above
become
useful:
[5]
'The
wrong
known
as passing
-
off
consists in a representation by one
person that his business (or merchandise, as the case maybe) is
that
of
another, or that it is associated
with that
of
another. In order to determine whether a representation
amounts
to a
passing-off
,
one enquires whether there is a
reasonable likelihood
that
members
of
the
public may be
confused into
be
l
ieving
that the business of the one is, or is connected
with,
that of another.'
[29]
As
these elements are applied to the facts at hand, it must also be
borne in mind that it is not necessary for the applicant to
prove
actual prejudice
,
proof
of
the
probability of such harm would suffice.
[6]
[30]
It
was argued on behalf of the
respondent
that:
[7]
‘
Use
of
the generic descriptive terms
such
as
"tankers
and
trailers", describe the true
nature
of
the Respondent's business and are not designed
to
confuse
the
public
and
no
customers were diverted to it. The respondent relied
on
Burnkloof
Caterers
(Pty)
Ltd
v
Horseshoe
Caterers
(Green
Point)
(Pty)
Ltd
1976
(2)
SA
930 (A)
p
938.'
[31]
In
Burnkloof
Caterers
(Pty)
ltd
v
Horseshoe
Caterers
(Green
Point)
(Pty) Ltd,
[8]
it
was held that,
'a
trader
who uses a descriptive word in designating his business must
ordinarily submit to the risk of some
confusion
arising
among the public if another trader uses the same word in relation to
his business
'
.
It further held that
,
'the
appellant has to prove not only the element of
confusion,
but
that it
was
due
to the
get-up
and
positioning of respondent
'
s
name-board and not merely to
the
word
"
Bar-8-Que".'
[9]
[32]
Indeed, as averred by the
respondent
,
to
which
the applicant
appears
to concede, the words
"Trailers
&
Tankers
"
,
when looked at in isolation, are generic
descriptive terms of the trade of the
businesses of both parties as they are involved in the trade of
trailers and tankers. However,
in this instance, there are various
factors that must also be taken into account in order to conclude if
they are offensive to
the applicant
'
s
logo. Such factors being:
(a)
the font in which they appear in the respondent's logo;
(b)
the format and positioning of the logo when compared to the
applicant's
;
(c)
their colour compared to that used by the applicant;
(d)
colour of the background in which they are printed
;
(e)
the other elements that make up the logos of the parties
,
including the design of the orange
trailer as in the applicant's logo;
(f)
shape and the style; and
(g)
the premises where the whole logo of the respondent
i
s
displayed
.
[33]
Furthermore
,
if
regard is had to the agreements that were concluded between the
applicant and the respondent, namely
,
the 'Inventory Consignment
';
Restraint of Trade' and
'
Exclusive
Distribution
',
the
respondent's reliance on
Burnkloof
Caterers
cannot be sustained. In
casu, the respondent knew that the logo was used for the applicant's
business
.
The
respondent designed the logo with the blessings of the applicant. The
respondent worked for the applicant. To use the same logo
for its own
business is surely prejudicial to the applicant. It is tantamount to
unlawful competition.
[34]
Therefore
,
when
the aforementioned factors are given regard in determining whether
the respondent would be justified also to use the words
,
'
Trailers &
Tankers' and in the manner described
,
it
is found that in addition to the factors that gave rise to the
complaint in
Burnkloof Caterers
,
the applicant herein has also
established that this particular similarity cannot be found to be as
innocent as the respondent claims.
Wherefore, I hold a firm view
that
,
the
following factors distinguished the appli
c
ant's
case from
Burnk/oof Caterers.
Such
factors, for instance
,
include
that the respondent was a distributor of the applicant
,
and had acquired intimate knowledge
o
f
the applicant
'
s
business including its trade secrets
;
finances and customers.
[35]
Furthermore,
as it was pointed out in New Media Publishing (Pty) Ltd v Eating Out
Web Services CC,
[10]
regard
must also be g
i
ven
to the products the opposing parties are selling. In this instance,
after the agreements between the parties had lapsed, the
respondent
carried on its business at the same business premises as when it was
conducting business with the applicant (not that
the respondent
should be prohibited from using the same premises, but this should be
seen as one of the relevant factors unde
r
consideration
)
.
The respondent sold the same products as it did when it was
distributing the applicant's products of the applicant; the only
difference is that it began to source its products from other
manufactures
/
suppliers
.
It
then became a direct competitor of the applicant.
[36]
With all characteristics and factors
,
the respondent wanted to create an
impression that using the words
"
Trailers
& Tankers
"
was
an innocent coincidence to describe the products of its trade
.
Without any plausible explanation as to
why the respondent chose the same characteristics as the applicant's
on the use of the alleged
'
generic
descriptive words
',
which
are a glaring replica to the applicant's
(
except
for the word 'Jikelele
'
)
,
the respondent's argument cannot be
sustained. To my mind
,
the
respondent's argument that it is was entitled to use them
,
in the manner described above and that
there was no intention to confuse customers
,
for they are 'g
e
neric
descriptive words
'
misses
the point.
[37]
The reliance on
Burnkloof Caterers
on
this aspect does not support the respondent
'
s
claim. The respondent's usage of these words was deceptive and
misleading to the public
.
It
failed to explain the motive of using the same get-up
;
colour
;
background
;
font
;
shape
;
style and even at the same premises
where it operated under the auspice of the applicant's business
.
If at all
,
the rest of the factors enumerated above
go to show that the applicant has established that not only the words
could create a confusion,
but also that a customer may well be
deceived to think that the respondent was or may have still been
associated with the applicant.
The
distinguishing
word
[38]
With all the similarities that characterised the logos of the
parties
,
the
respondent's logo also bears the word
'Jikelele'
.
On behalf of
the
respondent, it was argued that, it was
in the main, the use of the word
'Jikelele'
that distinguished
the
parties' logos and get-up and therefore
negated any probabilities of the similarities causing confusion
to
customers or harm to the applicant's
business or deception that the
respondent's
business was associated to that of the
applicant. Like it
is
the
case with
the use
of
the words
"Trailers
&Tankers",
the word,
'Jikelele'
is
in the same
,
get
up and font and design as the applicant's logo.
[39]
The
question
that arises is whether the elements of the alleged unlawful
competition and passing-off are eliminated by the inclusion
of the
word
'
Jikelele
'
to
the
respondent's logo.
To
address
this,
Beiersdorf
AG v Koni Multinational Brands
(Pty)
Ltd
[11]
finds application. This is where
the
court
held
that:
'[25]
In relation to the differing names
"NIVEA"
and
"CONNIE"
,
which the
respondent
places
emphasis
on, it has been held that the use of different names in otherwise
similar get-ups does not necessarily exclude the probability
of
deception.
[26]
In
Adidas Sportschuhfabriken Adi
Dass/er
KG
v Harry Walt
& Coco
(Pty)
Ltd
,
where
two
sport-shoe brands were at issue
,
it
was found, per Botha J, that notwithstanding the difference
in
name and the undeniable strength
of
one
of
the
brands, there was
still
confusion.
The
learned judge held:
"In
my
opinion,
taking into account
all
the
circumstances referred
to
above
,
the
use of the different
name
s
in this
case
is insufficient to negative the
deceptive effect
on
the
buying public of the
consp
i
cuous
s
imilar
it
i
es
in
the appearance of the
respective
goods
of the
plaintiff
and the defendant.
"'
(
F
ootnotes
omitted.)
[40]
It
is undisputed
that
the
applicant
started
its
business
in
2007.
It
s
brand
had
been in the market for approximately
for
ten years when the respondent became associated with it. It is also
common cause that the applicant had a footprint across the
country,
with
various
agents and distributors, and perhaps, hence the
respondent's
directors
also 'liked the Applicant's products and wished to sell the
Applicant's products in Kwa-Zulu Natal
'
.
[12]
Through
the
'
Consignment
Agreement'
,
the
respondent was serving as an agent of the applicant, and as such had
access to the applicant's customers
'
names
;
its
financial affairs
;
acquired
applicant's trade secrets; bus
i
ness
connections and acquired the premises at which the applicant's
products were displayed
,
and
,
obviously
its logo. This continued until the respondent and the applicant had a
fallout sometime in 2021
.
[41]
Although the respondent was registered in 2017
,
i
t only started its operations as an
independent entity after the fallout with the applicant
,
hen
c
e
i
t began to
develop its logo that bore all the similarities to that of the
appl
i
cant.
The respondent then commenced its operations at the same premises as
it was at when it a
c
ted
under the
'
Non-Disclosure
;
'
Restraint
of Trade
'; '
Inventory
Consignment' and 'Exclusive Distribution
'
agreements with the applicant. The
content and purpose of the agreements concluded between the parties
appear to be those classified
as the
"
Restrictive
Vertical Practices" and perhaps
,
for obvious reasons that it was
untenable that the parties would become competitors on the same
p
re
mises
.
[42]
The
principles set out in
Beiersdorf
AG
v Koni Multinational Brands (Pty) Ltd,
[13]
are
apposite and decisive. Firstly
,
the
only difference between the logos of the parties is that the
respondent's logo also bears the word
'
Jikelele
'.
Secondly,
that this word is on same background and colouring as that of the
applicant. Thirdly
,
the
display of the logo is at the same premises where the applicant was
operating through the respondent as its distributor or agent.
Fourthly, the word
'
Jikelele
'
is
on the same graphic presentation as that of the applicant. Fifthly,
the r
e
spondent's
logo bears the same characters as that of the applicant. Sixthly,
that th
e
respondent
is s
e
lling
the same products as the applicant and the only difference is that it
sourced its products from another supplier
.
[43]
It
must however also be borne in mind that,
'a
certain
measure
of
copying
is
permissible
',
but
the copying party must
"
make
it
perfectly
clear to
the
consumer
that
the
articles
which
it
is
selling are not the other manufacture
'
s,
but its own articles
,
so
that
there is no probability of any
ordinary
purchaser being
deceived'.
[14]
In
this instance, there has been no
attempt,
at
least to give
that
indication
to
ordinary
customers
that
the
respondent
was
no longer associated
with
the
applicant,
instead
,
the
respondent claimed
that
it
was
still
entitled
to
display
a similar
logo
because it had sponsored them and not with the assistance of the
applicant.
[44]
With all
the factors
taken
together, the emphasis on the
word
'Jikelele' as
what
sets the logos apart,
when
it
is on
the
same premises
as where
the
respondent
acted
as
the distributor of the applicant
does
not necessarily
exclude
the probability
of
deception. In short, the
addition
of the
word,
'
Jikelele
'
to
the
same
words
,
ge
t-up;
colouring
and
font used by the
applicant cannot be
successfully
regarded to b
e
what
sets
the
respondent
apart from the applicant
,
particularly
to
an
average consumer.
Is
the
applicant
required
to
provide
evidence
that
the
similarities
caused confusion to customers?
[45]
The respondent
further contended
that
the
applicant
had
presented no
evidence
to
establish
that
the
similarities alleged had
caused
any
confusion.
[46]
One
of the requirements for an
applicant
to
establish
in
an
alleged
passing-off as
outlined
in
Adidas
AG
v
and
Another
v
Pepkor
Retail Ltd
[15]
is
that the
applicant
would
have to allege and prove that
the
use
of
the
mark
was
likely
,
or
calculated
,
to
deceive and thus
causes
confusion
amongst
consumers,
having
the
result
of injury, actual
or
probabl
e,
to
the goodwill of the
applicant's
business
.
That
would
be
caus
ing
of
a
loss
in the profit that the business might have
made
,
had
the
respondent
not
used
its mark and
entices
consumers
to
its
business
,
who
thought they were dealing with
the
applicant's
business.
[47]
Further,
this draws attention to some of the elements passing-off which
include
,
'whether
there is
a
reasonable
likelihood
that
members of
the
public
may be confused into believing
that
the
business of the
one
is
,
or
is connected with
,
that
of other
'
.
[16]
[48]
The principle
in
Adidas
AG
case
is
merely highlighted to show that
there
is
no requirement on the applicant to provide evidence of actual
confusion
or
deception that would have been occasioned by the similarities that
form part of the alleged passing off.
Therefore
,
the fact that the applicant did not
provide hard evidence of confusion or deception that was resultant to
the alleged passing-off
should not be a consideration. It suffices
for the applicant, to establish a reasonable likelihood that members
of
the
public may be confused as pointed out. All
that
is required of an applicant is to show
that the use of the mark was likely or calculated, to deceive and
thus cause confusion amongst
consumers, having the result of injury
,
actual
or
probable
.
Hence
showing
of
the
probability and
likelihood
of
harm
suffice.
[49]
So
,
if
there are these similarities between their logos or,
or
colours;
get-up and even the
words
that form part of that logos
,
and in the mind of an ordinary
customer
(as it is described in
Kam)
,
can
it
be said that these similarities will not
induce confusion that
the
respondent
has any association or still associated with the applicant? This
question must be answered bearing in mind that the identity
of the
owner or designer of the logo is not decisive
.
Instead
,
the question is whether the logo
in
question was always associated with any
of the parties.
[50]
It is therefore sufficient that the applicant has
estab
l
ished
that the probability and reasonable
likelihood existed that the similarities are such that they
cou
ld
induce
confusion
to an average customer to believe
or
think that the respondent's business was
still associated with
that
of
the applicant's. Legal principles applicable
to
the enquiry on this matter place no
responsibility on the applicant to produce any
evidence
of a confusion that would have been
occasioned
by
the
alleged similarities. Lack of evidence of confusion that would have
occurred does not negate the applicant's claim in this instance
.
Alleged
continued possession of applicant's property and signage
[51]
It is common cause that the business association between the
applicant and the respondent
had terminated
.
During the subsistence of their
agreements
,
-tfl
particularly the
'
Exclusive
Distribution Agreement' of March 2020, the respondent undertook to
protect the applicant's business products; name; goodwill
;
and reputation. It was also agreed that
upon termination of the agreement
,
the
respondent would cease to utilize any of the applicant's trademarks
and logo in any way, and return same to the applicant.
[52]
On the other hand, the respondent contended that after an agreement
to allow it to
take a 25 percent mark-up from the applicant
'
s
products that it distributed, the applicant acted contrary to their
agreement and engaged in activities that made itself a competitor
of
the respondent. It alleged that the applicant began to interact
directly with customers in Kwa-Zulu Natal
,
which was that it was undercutting the
respondent
,
depriving
it from earning the 25 percent mark-up that was agreed upon.
Accord
i
ng
to the respondent
,
the
applicant was refusing to conduct itself in line with their agreement
that the respondent would be an exclusive distributor
o
f
its products in the Province
,
effectively putting the respondent out
of business
.
The
respondent disputed the allegation that it conducted its business in
a manner that was contrary to their agreements, instead
it averred
that the applicant was in breach of their agreements.
[53]
Regarding
the demand for the return of the products as set out in sub
paragraph 2(v) of the notice of motion
,
the
respondent stated that it was not possible to return them
.
Apparently
,
the
diesel tanker trailer had been sold
;
the
logo th
a
t
the applicant claimed ownership could not be retuned because
i
t
belonged to the respondent; and the two telephone devices also
belonged to the respondent as it had paid for their acquisition.
[17]
[54]
This part of the applicant's claim seems to have been overtaken by
events as the
applicant does not dispute that one telephone handset
was stolen and that the other was disconnected by it. The applicant
seems
to also accept the contention that the diesel tanker trailer
was sold.
[55]
Therefore, the remaining question is whether the respondent was
entitled to
continue to display the applicant's logo after the lapse
of their agreements or after it began to operate independently from
the
applicant. This is indirectly dealt with under the heading
"
ownership
of the logo
"
in
the judgment. For brevity
,
I
deem it unnecessary to repeat same, but rather to record the finding
under the aforementioned heading that the respondent was
not entitled
to display the applicant's logo at its business premises after it was
no longer associated with the applicant.
# Conclusion
Conclusion
[56]
At the commencement of the oral arguments
,
and on behalf of the applicant
,
a draft order was handed in with
paragraphs that had some variations to the prayer in the original
notice of motion. This variation
was explain
e
d
and it appeared that the inserted words sought to explain the relief
sought in sub-paragraph 2(ii) in the
n
otice
of motion, and with no substantial changes. The varied sub-paragraph
seemed clearer and shall therefore be preferred over
the paragraph in
the notice of mo
t
ion.
[57]
From a conspectus of all the factors discussed above
,
and taken cumulat
i
vely
,
it has been shown on a balance of
probabilities that the use of the word
'
Ji
k
elele
'
together with the applicant's logo
;
the get-up
;
the design and other factors referred to
is insufficient to negate the deceptive effect on the buying public
of the conspi
c
uous
similarities in the appearance of the respective goods of the
applicant and the respondent. The applicant has discharged the
onus
that rests on it to establish that the respondent's conduct amounted
to unlawful competition and was
c
alculated
to pass-off the applicant's business as being associa
t
ed
w
i
th it
even th
o
ugh
the
y
had
become competitors
.
[58]
In other words, on a balance of probabilities, the applicant has
established that
the orange
trailer
design logo was already associated
with
the applicant's business. It has also
shown
how
the
respondent styled the use of the words
'
Trailer
s
& Tankers' as part of
its
logo was likely to cause deception or
confusion to the public that the respondent was being connected to
the applicant in the course
of its trade
.
Undoubtedly,
respondent
'
s
use of all the characteristics and features that collectively make up
the applicant's logo did have the effect of passing-off
and unduly
compromising the applicant
'
s
business. Therefore
,
the
respondent must be restrained from the conduct of passing off and
desist from conducting itself in a manner that is likely to
cause
confusion and deception to customers. The respondent must equally
desist from
using
any
equipment or products that are the property or associated with the
applicant.
# Costs
Costs
[59]
Although the applicant sought an order of punitive costs, the record
of proceedings
and the parties
'
conduct
revealed no factors that would warrant imposing of such costs. One
also finds no cause for departure from the norm
that
the
costs
follow the results.
# Order
Order
[60]
In the result, the following order is therefore made
:
1.
The
respondent
is interdicted and restrained from
passing-off
or representing to the public at large
that it operates as part
of the
applicant or as
being
connected in the
course
of trade
with
the applicant
,
by
using in
regard
thereto
the offending get-up, or any get-up which is confusingly or
deceptively
similar
to
the applicant's distinctive
get-up.
2.
The respondent is to desist from using the appli
ca
nt's
logo
,
including
,
but not limited to the picture of the
orange tanker trailer
,
or
words
,
"
Trailer
&
Tankers
"
in the same style and on the same
distinctive logo
or
get-up
as
the
applicant
or
which is confusingly or deceptively similar to the
applicant's
logo
or
get-up
.
3.
The respondent is to immediately remove from public display all
signage
containing the applicant's distinctive get-up which is
confusing or deceptively similar to the applicant's get-up at its
premises
situated at 1[...] U[...] Road
,
Springfield and anywhere else that such
may be displayed.
4.
That the respondent immediately desist from represen
t
ing
that any products hen
c
eforth
sold by the Respondent were manufactured by
,
sour
c
ed
from
,
carry
any warran
t
ee
,
by the Appl
i
cant
;
5.
The respondent be ordered to immediately restore possession to the
applicant
of:
5.1
a 1 000 litre polyurethane tank;
5.2
signage
displayed at 1[...] U[...] Road
,
Springfield, bearing the applicant's
logo and wording; and
5.3
a telescopic signboard on a trailer.
6.
That in the event of the respondent not restoring possession of the
assets
above within 24 hours of the service of this order
,
that the sheriff of this Court or his
deputy is hereby authorized to uplift the assets from the respondent
and restore possession
thereof to the applicant.
7.
The respondent is directed to pay the costs of this application
,
including the costs that were reserved
on 2 November 2021. Such costs to include the costs of counsel.
# SIPUNZI
AJ
SIPUNZI
AJ
# ACTING
JUDGE OF THE HIGH COURT
ACTING
JUDGE OF THE HIGH COURT
#
APPEARANCE
DETAILS:
For
the Applicant:
Mr
E Mizrachi
Instructed
by:
Nelson
Borman & Partners
For
the Defendant:
Mr
A Choudree
Instructed
by:
K
i
rshen
Naidoo & Company Inc.
Matter
heard on:
28 April 2023
Judgment
delivered on: 14 June 2023
[1]
Capital
Estate
and
General
Agencies
(Pty)
Ltd
and
Others
v
Holiday
Inns
Inc.
and
Others
1977
(
2)
SA 916
(A)
w
hich
was
approved
in
Koni
Multinational Brands
(Pty)
Ltd
v
Beiersdorf
AG
(553/19)
[2021]
ZASCA
24 (19 March 2021) para 19.
[2]
C
a
pita
l
Estate
ibid
at 929C-D.
[3]
Plascon-Evans
Paints
Ltd
v
Van
Riebeeck
Paints (Ply
)
Ltd
1984
(
3)
SA 623
(A
)
.
[4]
Adidas
AG
and
Another v Pepkor Retail
Ltd
[2012]
1 All SA 636
(
WCC)
para 64.
[5]
Capital
Estate and
General
Agencies
(Pty
)
Ltd
and
Others v
Holiday
Inns In
c
.
and
Others
1977
(
2)
SA
916 (A) at 929C-D.
[6]
Adcock-Ingram
Products
v
Beecham
SA
(
Pty)
Ltd
1977
(4)
SA 434
(
W)
.
[7]
Respondent's
concise
heads
of
argument para
4.
[8]
Burnkloof
Caterers
(Ply)
ltd
v
Horseshoe Caterers
(
Green
Point)
(Pty)
Ltd
1976
(2) SA 93
0
(A)
at 938G-H
.
[9]
Ibid
at
938H.
[10]
New
Media Pub
lis
hing
(
Ply
}
Ltd
v Eating Out Web
S
erv
i
ce
s
CC
200
5
(
5
)
SA
3
8
8
(C)
.
[11]
Beiersdorf
AG v
Koni
Multinational
Brands
(Pty)
Ltd
2019
(4)
SA 553 (GJ).
[12]
Founding
affida
v
i
t
para
1
7.
[13]
Beier
s
d
o
rf
A
G
v K
oni
Mu
l
t
in
ati
o
n
al
Br
a
n
ds
(
Ply
)
Lt
d
2
01
9
(4
)
SA
553
(
GJ)
,
w
h
i
c
h
app
ro
ac
h
w
as
approved
by th
e
Supr
e
me
C
o
u
rt
on
App
ea
l
in
K
on
i
Mu
l
t
ina
ti
onal
Bran
d
s
(Ply)
Ltd
v
Be
i
ersdorf
A
G
(55
3/
1
9
)
[2021] ZAS
C
A
2
4
(
1
9
M
ar
c
h
2
0
21).
[14]
Beiersdorf
AG v Koni Multinational Brands
ibid
para
21.
[15]
Adidas
AG
and
Another
v
Pepkor
Retai
l
Ltd
[2012]
1
All
SA
636
(WCC) para 64.
[16]
Capital
Estate
and
General
Agen
cies
(Ply)
Ltd
and
Others
v
H
oliday
I
nns
Inc
and
Others
1977
(2)
SA
916
(A)
at
929C
-D
;
Ko
n
i
M
u
lt
i
nat
io
nal
Brand
s
(Ply}
Ltd
v
Beiersdorf
AG
(553/19)
[202
1]
ZASCA
2
4
para 19.
[17]
Answering
affid
a
v
i
t
para 5
3
.
sino noindex
make_database footer start
Similar Cases
DF Dynamic Freight (Pty) Ltd and Others v Two Six Nine Sydney Road Share Block (Pty) Ltd (D259/2021) [2024] ZAKZDHC 95 (17 October 2024)
[2024] ZAKZDHC 95High Court of South Africa (KwaZulu-Natal Division, Durban)97% similar
Talksure Trading (Pty) Ltd v Naidoo and Another (D4630/2021) [2023] ZAKZDHC 50 (28 July 2023)
[2023] ZAKZDHC 50High Court of South Africa (KwaZulu-Natal Division, Durban)96% similar
Xmoor Transport (Pty) Ltd v Ethekwini Municipality and Others (D12238/2022) [2025] ZAKZDHC 67 (6 November 2025)
[2025] ZAKZDHC 67High Court of South Africa (KwaZulu-Natal Division, Durban)96% similar
Renian Distributors (Pty) Ltd v Crown Footwear (Pty) Ltd and Another (3898/2022) [2024] ZAKZDHC 4 (1 February 2024)
[2024] ZAKZDHC 4High Court of South Africa (KwaZulu-Natal Division, Durban)96% similar
Mzansi Auto Parts and Repairs (Pty) Ltd v Wesbank Limited (A Division of Firstrand Bank Limited) (D9955/2023 ; D9141/2023 ; D9140/2023) [2024] ZAKZDHC 96 (12 November 2024)
[2024] ZAKZDHC 96High Court of South Africa (KwaZulu-Natal Division, Durban)96% similar