Court Orders Trader To Pay Perodua Over RM500,000 For Counterfeit Lubricants

Genuine Perodua engine oils (lubricants) pictured.

The Kuala Lumpur High Court has reportedly punished an automotive trading firm, ordering it pay over RM500,000 in compensation to automaker Perodua. Said firm was found guilty by the court for selling counterfeit Perodua engine lubricants bearing Perodua trademarks.

According to a report by The Edge Malaysia, the offending firm – Eco Auto Supply – had their premises raided by enforcers from the Ministry of Domestic Trade and Cost of Living (KPDNHEP) back in May 2019.

From said raid, enforcers found various items such as Perodua-branded cap liners, empty Perodua-branded bottles, Perodua-branded engine lubricants (finished products), along with lubricants syphoned from aluminium tanks, oil additives, base oil, gear, oil, and various documents.

Initially, Eco Auto Supply’s sole proprietor Lee Lap Kee was charged under the Trade Descriptions Act 2011 and subsequently pleaded guilty, and was later fined RM52,920. Perodua then followed up with a civil action against Lee for trademark infringement and passing off  In Sept 2022.

From the latter, a consent of judgement was declared in Sept 2022, and it prohibits Lee from:

Additionally, as part of the consent judgement, Lee also agreed to publish a full apology to Perodua across several daily newspapers.

In determining the damages, the High Court also elected to award Perodua RM16,777.91 for lost business profits and a further RM500,000 for harming its goodwill and reputation.

High Court judge Adlin Abdul Majid deemed this sum “fair and reasonable” given the impact on Perodua’s brand, and she also awarded an additional RM 15,000 to the automaker in legal costs.