Supreme Court Shocker: Mediation Transforms Counterfeit Scandal into Million-Dollar Collaboration

Supreme Court Justice Manmohan has highlighted the revolutionary potential of mediation, sharing an inspiring case where a court battle over counterfeiting turned into a business alliance. Addressing the conference "India's Legal and Regulatory Framework: Navigating International Trade Opportunities," Justice Manmohan explained how mediation can accomplish more than simply resolve conflict-it can produce surprising, positive partnerships.

He explained the tale of an international brand of jeans who sued a small Indian company for making counterfeits. Following the grant of an injunction by the court, the matter was sent to mediation. Through the process, it was learned by the brand that the accused counterfeiter was making top-of-the-line jeans. Instead of pursuing the court battle, the brand had a chance: it made the Indian company its authorized supplier, converting an opponent into a valued business partner.

Justice Manmohan called this a testament to the potential of Alternative Dispute Resolution (ADR), especially under India’s new Mediation Act. He emphasized that mediation, when approached with openness, can reveal hidden strengths and opportunities that litigation often overlooks.

Key highlights from Justice Manmohan’s address:

Mediation can turn adversaries into allies, as demonstrated in the jeans trademark case.

ADR mechanisms are increasingly vital in a world of complex, cross-border commerce and technology.

On standard essential patents (SEPs), he asked whether a national or worldwide system should deal with disputes, emphasizing the requirements for new systems of international disputes resolution.

He used analogies to music and youth to symbolize the entanglements in mergers and the uncertain potential of artificial intelligence, calling on legal harmonization and strong rule of law in order to court global investment.

Data protection and cybersecurity, he added, need to be the pillars of India's digital trade destiny.

Lalit Bhasin, President of the Society of Indian Law Firms, seconded the appeal for India to emerge as a global hub for legal services, backed by reforms such as the Mediation Act and increased legal diplomacy.

This case is a strong illustration of how mediation, not confrontation, can unleash value and redefine relationships in the legal and business communities. 

Sources: Bar & Bench, LinkedIn, Instagram