Business Law

IP Infringement: Delay Doesn't Negate Urgency for Ongoing Violations

Supreme Court rules continuous intellectual property theft creates inherent urgency - delay in filing lawsuit doesn't force companies into mediation

Case Reference: Novenco Building and Industry A/S vs. Xero Energy Engineering Solutions Private Ltd. & Anr. (Civil Appeal No. of 2025) Decided by: Supreme Court of India Date: October 27, 2025

❓ Question

IF A COMPANY DISCOVERS ITS PATENTS AND DESIGNS ARE BEING COPIED, BUT IT TAKES A FEW MONTHS TO GATHER EVIDENCE AND FILE A LAWSUIT, CAN A COURT DISMISS THE CASE FOR NOT BEING "URGENT ENOUGH," FORCING THE COMPANY INTO LENGTHY MEDIATION FIRST?

✅ Answer

NO, NOT IF THE INFRINGEMENT IS ONGOING. The Supreme Court has ruled that in cases of continuous intellectual property (IP) theft, the "urgency" is inherent in the nature of the violation itself. A delay in filing the lawsuit does not automatically negate this urgency. The court must recognize that every day the copying continues, the original creator suffers immediate and irreparable harm to its business and reputation.

⚖️ Understanding the Legal Principles

🔹 "Urgent Relief" Assessed from Plaintiff's Standpoint

  • Court clarified urgency isn't a mechanical count of days but a holistic view
  • Must evaluate from plaintiff's perspective facing ongoing harm
  • For continuing wrongs like IP infringement, injury is fresh each day
  • Protects rights holders from being penalized for investigation time

🔹 Continuing Infringement Creates Inherent Urgency

  • Each act of manufacturing/selling counterfeit products is a new legal wrong
  • Harm includes brand damage, customer confusion, market reputation loss
  • This type of harm is "irreparable" - impossible to fully quantify with money
  • Public interest in stopping deception adds to urgency

🔹 Delay in Filing Doesn't Kill Urgency for Ongoing Violations

  • Court corrected lower courts' over-emphasis on time gap
  • Lapse of time less important than persistence of the peril
  • Delay irrelevant when infringing activity continues unabated
  • Question is "Is harmful activity still happening?" not "Why did you wait?"

🔹 Court's Role: Check Plausible Urgency, Not Case Merits

  • Limited scope of inquiry at preliminary stage
  • Threshold test, not full trial - only check if request seems legitimate
  • Should verify urgency isn't "camouflage" to avoid mediation
  • If plaint shows real ongoing problem, mediation can be bypassed

📜 Key Legal Timeline

2017

Dealership Agreement: Appellant executed agreement with Xero Energy for marketing Novenco ZerAx fans across India

July 2022

Discovery of Infringement: Appellant discovered Xero Energy marketing competing products through newly formed Aeronaut Fans

Dec 2023

Technical Inspection: Appellant's expert inspected infringing fans at client sites, confirmed patent/design violations

June 2024

Lawsuit Filed: Commercial suit filed seeking injunction against continuing infringement

Oct 27, 2025

Supreme Court Ruling: "Delay doesn't negate urgency when infringement is continuing" - restored suit for merits hearing

🧭 Your Action Plan: Protecting Your Intellectual Property

📝 If Your IP Rights Are Being Infringed

✅ Document the "Continuing" Nature of Infringement

  • Gather dynamic evidence showing ongoing activity - dated receipts, ads, website updates
  • Maintain clear timeline of your actions and infringer's continuing actions
  • Keep records demonstrating diligence and uninterrupted nature of harm
  • Collect technical evidence through expert inspections when needed

✅ Frame Your Lawsuit to Highlight Inherent Urgency

  • Explicitly state infringement is "continuous" in legal complaint
  • Plead that each day causes "irreparable harm" to brand goodwill
  • Annex all evidence showing ongoing nature of violation
  • Clearly explain how IP theft itself creates urgent situation

✅ Advocate the Correct Legal Test

  • If challenged on delay, cite this Supreme Court judgment
  • Explain urgency is inherent for continuing IP infringement
  • Emphasize court should assess from rights holder's standpoint
  • Focus on present danger, not when infringement was first discovered

⚖️ Key Legal Provisions to Reference

Legal Provision What It Means Application in This Case
Section 12A
Commercial Courts Act
Makes pre-litigation mediation mandatory for commercial disputes Exception applies when suit "contemplates any urgent interim relief"
"Contemplates any urgent interim relief"
Exception to Section 12A
Allows direct lawsuit filing without mediation for urgent matters Continuous IP infringement creates inherent urgency qualifying for exception
Continuing Infringement
Legal Doctrine
Legal wrong that repeats over time with each act being fresh violation Each day of unauthorized IP use constitutes new cause of action
Irreparable Harm
Legal Standard
Injury that cannot be adequately compensated by money alone Brand reputation damage and market confusion qualify as irreparable harm

📘 Key Legal Terms Explained

Section 12A of Commercial Courts Act

A law that generally makes pre-litigation mediation mandatory for commercial disputes before a lawsuit can be filed.

"Contemplates any urgent interim relief"

The exception to Section 12A. If a lawsuit genuinely seeks urgent temporary orders (like injunction), it can bypass mediation.

Continuing Infringement

A legal wrong that repeats over time, like ongoing unauthorized use of patents/trademarks. Each day it continues is a new violation.

Irreparable Harm

A type of injury that cannot be adequately compensated by money alone. Damage to business reputation and brand identity are classic examples.

🚨 What to Avoid When Facing IP Infringement

❌ Don't Assume Delay Automatically Kills Urgency

  • Don't concede that investigation time eliminates urgency for ongoing violations
  • Avoid accepting court's mechanical counting of days between discovery and filing
  • Don't let procedural technicalities override substantive rights protection
  • Avoid framing your case as historical rather than continuing violation

❌ Don't Neglect Ongoing Evidence Collection

  • Don't rely only on initial evidence of infringement
  • Avoid letting documentation of continuing violations lapse
  • Don't fail to create clear chronology showing persistent harm
  • Avoid informal communications without proper records

💡 Core Takeaway from the Supreme Court

"In actions alleging continuing infringement of intellectual property rights, urgency must be assessed in the context of the ongoing injury and the public interest in preventing deception. Mere delay in institution of a suit by itself, does not negate urgency when the infringement is continuing."

This judgment ensures that the legal procedure serves the cause of justice, not the other way around. It empowers creators and innovators to protect their rights effectively against dishonest competitors, recognizing that the theft of ideas and brand identity requires swift and decisive action from the courts.

📞 When to Seek Professional Help

👨‍⚖️ IP Lawyer Essential For

  • Complex IP infringement cases with technical evidence requirements
  • Responding to court challenges regarding urgency and mediation requirements
  • Strategic framing of lawsuits to highlight continuing nature of violations
  • Appeals against incorrect application of procedural requirements
  • International IP protection and cross-border infringement issues

📝 You Can Handle With Support

  • Initial documentation of infringement evidence
  • Basic understanding of IP rights and protection mechanisms
  • Monitoring ongoing infringement activities
  • Maintaining chronology of events and communications
  • Understanding basic legal principles from this judgment

⚠️ DISCLAIMER

This content is for informational purposes only and does not constitute legal advice. Consult a qualified legal professional for specific legal guidance. The information provided is based on judicial interpretation and may be subject to changes in law.

🌿 LegalEcoSys Mission

Making Supreme Court judgments accessible and actionable for every Indian citizen navigating legal challenges.

This roadmap decodes a complex commercial procedure judgment to help businesses and innovators understand how to effectively seek urgent legal protection when their intellectual property is under continuous attack.