Case No. 12230/1/q between Roxtec International AB Vs. Mashareq Commercial Technical Institution. Infringement of a registered trademark Goods not from original source shall be destroyed. Damages will require cause-and-effect relationship

This case was filed on the basis of a registered trademark ROXTEC in Saudi Arabia. The claim of the plaintiff was that the defendant is selling counterfeit products using the registered trademark of the plaintiff which is prohibited under Saudi trademark law. Proceedings were initiated before Administrative Court in Riyadh.

The defendant pleaded that the products were purchased from a third party as an intermediary, and that intermediary had purchased the goods from manufacturer. On this basis, the stance of defendant was that there is no liability of infringement. The defendant also relied on decision in criminal proceedings, in a same case, initiated separately by Bureau of Investigation and Prosecution where the court declared that defendant is not liable since the goods were purchased from third party and such third party had purchased this from manufacturer.

The Administrative Court relied on the outcome of Criminal proceedings and did not put liability upon the defendant, however the court further ruled that it is clear from the investigation report of government agency that the goods are not from the original source, therefore the goods are infringing goods under Saudi trademark law. The court ordered the defendant to stop dealing in such infringing goods and further ordered that all the infringing goods shall be destructed.

Court refused to award compensation due to lack of sufficient evidence which could establish cause and effect relationship as required under Islamic shariah law. The fact that defendant had purchased goods from intermediary, and lack of sufficient evidence to prove damages were relied upon for refusal of compensation award.