(Kampala) – The Commercial Division of the High Court in Kampala has ruled against Li Yao Industry Limited, ordering the company to stop producing plastic basins after it was found to have infringed on industrial designs owned by Victoria Nile Plastics Limited.
On September 2, 2024, Justice Patricia Kahigi Asiimwe issued the directive, instructing Li Yao Industry Limited to cease reproducing and selling basins that featured designs registered by Victoria Nile Plastics. The registration certificate for these designs was granted to Victoria Nile Plastics on September 5, 2018, by the Uganda Registration Services Bureau.
Victoria Nile Plastics filed a lawsuit seeking legal protection for its industrial designs, claiming that Li Yao Industry Limited had been manufacturing, stocking, and selling plastic basins that mimicked its registered designs without consent. The company argued that this infringement had caused it significant financial losses, as well as operational challenges and distress, and sought compensation for the damages.
In her ruling, Justice Asiimwe issued a permanent injunction, preventing Li Yao Industry Limited from producing, selling, or stocking any basins that replicated the designs registered by Victoria Nile Plastics. The court also awarded Victoria Nile Plastics 20 million Ugandan shillings in damages, with an 18% interest rate from the time the lawsuit was filed in 2021. Additionally, Li Yao Industry Limited was ordered to cover the legal costs incurred by the plaintiff.
The court further instructed that all infringing basins produced by Li Yao Industry Limited must be destroyed within 14 days, ensuring that no further sales or production of the contested designs would take place.
The following table summarizes the court’s rulings:
| Action Required from Li Yao Industry Ltd | Details |
|---|---|
| Cease Production | Plastic basins with designs resembling those of Victoria Nile Plastics |
| Compensation to Plaintiff | UGX 20 million, with 18% interest from 2021 |
| Legal Costs | To be paid by Li Yao Industry Limited |
| Destruction of Infringing Goods | Within 14 days |
