Kiran Raj

The Delhi High Court has issued a decree of permanent injunction against Advanced Engineering Solutions and its director, restraining them from using unauthorized copies of Dassault Systèmes’ software, including ‘SOLIDWORKS,’ ‘SIMULIA,’ and ‘CATIA.’ The court recorded that the defendants had knowingly engaged in piracy by using unlicensed versions of the software on multiple computer systems. In addition to granting an injunction, the court awarded Rs. 2,78,34,320 as compensatory damages and Rs. 3,21,000 as legal costs in favor of the plaintiffs.

The plaintiffs, Dassault Systèmes and its subsidiaries, including Dassault Systèmes SolidWorks Corporation and Dassault Systèmes India Private Limited, filed a suit against Advanced Engineering Solutions and its director. Dassault Systèmes, a French multinational, develops computer-aided design (CAD), computer-aided manufacturing (CAM), and computer-aided engineering (CAE) software used across industries such as aviation, defense, automotive, and consumer products. The plaintiffs submitted that their software, including ‘SOLIDWORKS,’ ‘SIMULIA,’ and ‘CATIA,’ was protected under copyright law and licensed to users under strict terms.

The plaintiffs alleged that the defendants had been using pirated versions of their software without proper licenses. The matter came to light in April 2018, when the plaintiffs received credible information from market sources regarding unauthorized use of ‘SOLIDWORKS’ at the defendants’ business premises. To verify this, the plaintiffs reviewed their infringement database, which confirmed unauthorized installations on at least six computer systems.

In response to the infringement, the plaintiffs issued a legal notice on April 10, 2018, informing the defendants of their rights and demanding that they cease using pirated copies of the software. The plaintiffs also engaged compliance consultants, eCluewise Services, who attempted to communicate with the defendants. In their initial response, the defendants claimed to possess a licensed copy of ‘SOLIDWORKS’ and provided an invoice as proof. However, upon verification, the plaintiffs determined that the invoice did not match the software versions in use.

Despite multiple follow-ups and further legal notices issued on May 23, 2018, September 17, 2018, and May 10, 2019, the defendants failed to engage in discussions to resolve the matter. The plaintiffs also discovered that, in addition to ‘SOLIDWORKS,’ the defendants were using unauthorized versions of ‘SIMULIA’ and ‘CATIA’ software. A market investigator hired by the plaintiffs further confirmed in July 2020 that employees at the defendants’ company were using ‘CATIA V5’ for 3D modeling.

The court examined the plaintiffs' submissions and evidence, including infringement reports, internal database records, and legal notices. It recorded that the plaintiffs had established ownership of the copyrighted software and had demonstrated unauthorized use by the defendants.

"The plaint has been duly verified and is also supported by the affidavit of the plaintiffs. In view of the fact that no written statement has been filed on behalf of the defendants, all the averments made in the plaint have to be taken to be admitted."

The court noted that the defendants had initially appeared before the court on September 18, 2020, and undertook not to use the software without proper licenses. However, the defendants subsequently failed to appear and were proceeded against ex-parte on March 17, 2021.

The court examined infringement data from the plaintiffs’ monitoring systems, which confirmed multiple instances of unauthorized software usage. It observed: "The infringement hits recorded on the ‘phone home’ technology of the plaintiffs clearly show unauthorized use of the plaintiffs’ software programs on multiple computer systems of the defendants."

The court further noted that the defendants had failed to comply with their undertaking to obtain licenses for ‘SOLIDWORKS.’ It recorded that: "It appears that the defendants have deliberately infringed the copyright of the plaintiffs. The defendants’ failure to take any steps to contest the suit or comply with their undertaking reflects a willful disregard for the rights of the plaintiffs."

Regarding damages, the court referred to Rule 20 of the Delhi High Court Intellectual Property Rights Division Rules, 2022, which provides guidelines for computing damages based on lost profits, the duration of infringement, and other factors. It stated: "The plaintiffs have provided evidence demonstrating the income they would have earned through legitimate licensing. The total damages claimed by the plaintiffs, based on license values, amount to Rs. 4,49,32,244. However, the final sum sought in the updated affidavit is Rs. 2,78,34,320."

The court issued a decree of permanent injunction restraining the defendants from directly or indirectly copying, reproducing, installing, or using unauthorized copies of ‘SOLIDWORKS,’ ‘SIMULIA,’ ‘CATIA,’ or any other software developed by the plaintiffs. The court further ordered the defendants to deliver all unlicensed copies of the plaintiffs' software, as well as any duplicating equipment used in copying the software, to the plaintiffs.

Additionally, the court awarded compensatory damages amounting to Rs. 2,78,34,320 in favor of the plaintiffs and against the defendants. The court directed that the plaintiffs pay additional court fees on the differential amount awarded within three weeks.

The defendants were also ordered to pay Rs. 3,21,000 as legal costs incurred by the plaintiffs, including court fees and other litigation expenses. The court recorded: "A decree of damages of Rs. 2,78,34,320 is passed in favor of the plaintiffs and against the defendants. Additionally, costs of Rs. 3,21,000 are awarded to the plaintiffs in terms of legal expenses incurred."

Case Title: Dassault Systèmes & Ors. vs. Advanced Engineering Solutions & Anr.
Case Number: CS(COMM) 378/2020
Bench: Justice Amit Bansal

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