Delhi HC Grants Injunction to Falcon Autotech on Sortation System

In the case, Falcon Autotech Private Limited v Kengic Intelligent Technology Co. Ltd, the Delhi High Court passed an ex-parte ad-interim injunction to stop Kengic Intelligent Technology Co. Ltd (Kengic) from manufacturing, selling, importing, exporting, and/or offering for sale, advertising, exhibiting, and/or promoting, in any manner, products or any product, which infringed upon a patent of Falcon Autotech Private Limited (Falcon).

Falcon, an Indian company specialising in intralogistics automation solutions, leads in creating machines to optimise and automate key processes in warehouses and logistics centres. In 2022, Falcon patented an integrated pre-sortation system designed to enhance supply chain efficiency, particularly benefiting e-commerce and delivery services. The technology includes feed lines, a pre-sorting setup, cross-belt sorter segments, and apparatuses connected to a server via a communication network.

In June 2024, Falcon learnt that Kengic, a Chinese warehouse automation company, had installed an identical sorter machine at one of Falcon’s client’s premises which had virtually identical specifications, configuration and usage as their patented integrated system. Falcon subsequently filed a suit before the Delhi High Court against Kengic asserting that Kengic’s machine infringed on their suit patent. To further bolster their claim, Falcon submitted a visual comparison mapping the claims of their patent with Kengic’s machine.

Falcon informed the Court that Kengic had been operating in India without proper registration as a foreign company, despite the closure of its Indian subsidiary in 2021. Falcon presented evidence showing Kengic’s continued activities in India, which the Court found to be unlawful.

The Court found a clear case of patent infringement in favour of Falcon, along with evidence of Kengic’s clandestine operations in India. Therefore, the Court restrained Kengic, along with its employees, representatives, dealers, distributors, and franchisees, from manufacturing, importing, selling, offering for sale, advertising, or promoting any products that infringe upon Falcon’s suit patent.

This decision underscores the significance of intellectual property rights in safeguarding technological innovations and promoting equitable business conduct among companies. This decision also serves as a prompt, highlighting the necessity for strict adherence to patent laws and ethical business practices.