Browns’ attempt to piggyback on goodwill of Mackwoods tea enjoined by Court

After the contentious sale of Agalwatte Plantations Plc to Browns Power Holdings Ltd. by the Mackwoods Group, the reputed Labookellie Tea Centre, established by Mackwoods around 2003, has continued to be run under the management of Browns.

This was, however, in violation of an enjoining order granted by the Nuwara Eliya District Court in case No. SPL/176/16 in favour of Mackwoods, preventing Browns from entering the tea centre. Browns, in complete disregard of the enjoining order, took over the management of the Labookellie Tea Centre, ousting Mackwoods from the tea centre.  

Browns thereafter sold their brand Labookellie Tea packaged in boxes almost identical to the packaging of the world-renowned Mackwoods Tea.

Mackwoods Tea has been associated with the colour combination of British Racing Green and Gold for over 175 years and even after the re-branding of Mackwoods Tea around 2002, the above colour combination continued as a result of the broad reputation it had gained worldwide.

Browns, being aware of the reputation gained by Mackwoods Tea, marketed their brand Labookellie Tea at the Labookellie Tea Centre previously run by Mackwoods in the same manner and form as Mackwoods, causing the general public to wrongly believe that both the Labookellie Tea Centre and the brand Labookellie Tea were still associated with Mackwoods.

Browns had affixed their name board at the tea centre replacing the Mackwoods board, copying the same shape and colour combination of the latter. Furthermore, it is alleged that Browns had not only copied the tea packages but also the tea sets in which Mackwoods served their tea, other handloom gift items sold by Mackwoods at their gift shop and even the paper bags in which the tea was packed and given to the customers, in a desperate attempt to piggyback on the goodwill and reputation of Mackwoods Tea gained through over 175 years’ experience in the tea industry. 

Mackwoods Tea Ltd. instituted action against Brown and Company Plc and three other companies of the Browns Group in the Commercial High Court of Colombo on 30 March 2017 and supported the matter on 31 March 2017 given the urgency of the matter to prevent Browns engaging in unfair competition while causing irreparable damage to the goodwill and reputation of Mackwoods Tea. 

President’s Counsel K. Kanag-Isawaran, appearing for the plaintiff, while seeking the first enjoining order, drew the attention of the Court to various acts of the defendants constituting unfair competition in the running of the Labookellie Tea Centre, misleading the public as to who was in fact running the tea centre.

Additionally, a further enjoining order was sought preventing the defendants from using tea packages confusingly similar to that of Mackwoods tea with the colour combination of British Racing Green and Gold.

The third enjoining order was sought to prevent the defendants from using a tea canister similar to that of the iconic silver tea canister introduced by Mackwoods for their 160th anniversary which is being used by Mackwoods even at present. 

While cases of unfair competition are commonly instituted to prevent the offender from using trade names, trade dress, etc. which are confusingly similar to that of the plaintiff, these are unique circumstances where relief is sought to prevent another from copying the running of a business at the business premises posing to be another. 

President’s Counsel K. Kanag-Isawaran with Lakshmanan Jaykumar and Rozali Fernando instructed by F.J & G de Saram appeared for Mackwoods. After considering the submissions made by the counsel for Mackwoods and documents filed in Court, Ruwan Fernando granted all three enjoining orders sought against Browns.