KUALA LUMPUR (Nov 5): The High Court here has ordered an automotive trader of parts and lubricants to pay RM516,777 to Perodua Otomobil Kedua Sdn Bhd and Perodua Sales Sdn Bhd for selling counterfeit Perodua lubricants bearing Perodua trademarks.
The sole proprietor, Lee Lap Kee, of the business known as Eco Auto Supply had his premises raided on May 16, 2019, by the enforcement division of the Ministry of Domestic Trade and Cost of Living (previously known as the Ministry of Domestic Trade and Consumer Affairs).
During that raid and seizure, various items were found, including Perodua-branded cap liners, empty Perodua-branded bottles, Perodua-branded engine oil (finished products), lubricants syphoned from aluminium tanks, oil additives, base oil, gear oil, and various documents.
Following the raid and seizure, Lee was charged under the Trade Descriptions Act 2011 at the Shah Alam Sessions Court for exposing for supply or having in his possession, custody or control for supply, automotive lubricants which include the Perodua brand of goods to which a false trade description is applied. The defendant pleaded guilty to the charges and was sentenced to a fine of RM52,920.
Perodua Otomobil Kedua and Perodua Sales had then commenced a civil action against Lee for trademark infringement and for passing off for manufacturing, producing, reproducing, distributing, supplying, selling and offering for sale counterfeit automotive lubricants bearing the Perodua trademarks.
Lee and both Perodua entities had entered into a consent judgment in September 2022.
A consent judgment is when a settlement or agreement of both parties is made before the judge.
In the consent judgment, the two parties agreed that Lee be restrained from:
- Infringing or attempting to infringe the Perodua trademarks and/or the Perodua Get-Up by importing, manufacturing, producing, reproducing, distributing, supplying, selling, offering for sale or otherwise howsoever automotive lubricants which are not permitted and/or authorised;
- Passing off or attempting to pass off, or causing, enabling or assisting others to pass off automotive lubricants that are not permitted and/or authorised by Perodua;
- Using Perodua trademarks without the consent of Perodua;
- Importing, manufacturing, producing, reproducing, distributing, supplying, selling, offering for sale or otherwise howsoever, automotive lubricants from Perodua;
- Manufacturing, producing, reproducing, distributing, supplying, selling, offering for sale or otherwise howsoever, automotive lubricants in doing the same.
Lee also agreed to publish a full apology in three daily newspapers.
This decision by the High Court in awarding the aforementioned sum of money was brought by Perodua as they had opted to let the court decide the quantum of damages to be awarded.
The court found that Perodua had suffered a loss of business profit totalling RM16,777.91.
The judge also awarded a sum of RM500,000 to Perodua for loss of goodwill and reputation.
High Court judge Adlin Abdul Majid who awarded the sums surmised that it was a “fair and reasonable” sum to be awarded for Perodua’s loss of reputation and goodwill in her judgment dated Oct 4, 2024.
She also awarded RM15,000 in costs to Perodua.