Delhi Court orders Permanent Injunction in a Trademark case

Laborate Pharmaceuticals has registered the trademark "Labdic Relief" for its anti-inflammatory medication.

The Health Master

November 6, 2024

Table of Contents

Last Updated on November 6, 2024 by The Health Master

Trademark

Key Points:

Trademark Dispute: SGS Pharmaceuticals’ “Diclozen Relief” found to infringe Laborate Pharmaceuticals’ registered trademark “Labdic Relief.”
Packaging Similarity: Delhi Court rules that SGS Pharma’s packaging design closely mimics Laborate Pharma’s, leading to potential consumer confusion.
Permanent Injunction: Court issues a permanent injunction, barring SGS Pharma from manufacturing and marketing “Diclozen Relief.”
Nominal Damages: SGS Pharma ordered to pay Laborate Pharma nominal damages of Rs 5,00,000.

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Delhi Court Orders Permanent Injunction

In a significant legal victory for intellectual property rights, a Delhi District Court has issued a permanent injunction against SGS Pharmaceuticals Pvt. Ltd., compelling the company to cease manufacturing and marketing its pharmaceutical product “Diclozen Relief.”

The court’s decision stems from a trademark infringement lawsuit filed by Laborate Pharmaceuticals India Ltd., alleging that SGS Pharma’s product closely resembles its registered trademark “Labdic Relief” in terms of packaging design and overall presentation.

The Trademark Case

Laborate Pharmaceuticals, a well-established pharmaceutical company operating since 1990, has registered the trademark “Labdic Relief” for its anti-inflammatory medication.

The company has also secured copyright protection for its unique packaging design, which includes the term “Fast Dissolving” and the acronym “FD.”

In 2019, Laborate Pharma discovered that SGS Pharma was marketing “Diclozen Relief,” an analgesic, with strikingly similar packaging and design.

The company argued that SGS Pharma’s product was deliberately designed to imitate its own, with the intent to deceive consumers and capitalize on Laborate Pharma’s established goodwill.

Court’s Decision and Rationale

After careful consideration of the evidence presented by both parties, the court ruled in favor of Laborate Pharma.

Key factors influencing the court’s decision include:

Trademark Similarity: The court found that the overall appearance of SGS Pharma’s “Diclozen Relief” packaging was substantially similar to Laborate Pharma’s “Labdic Relief” packaging, potentially leading to consumer confusion.
Copyright Infringement: The court determined that SGS Pharma’s packaging design infringed upon Laborate Pharma’s copyrighted design, as it closely imitated the color scheme, font style, and layout.
Passing Off: The court concluded that SGS Pharma’s actions constituted passing off, as the company was attempting to trade on Laborate Pharma’s reputation and goodwill.

Implications for Pharmaceutical Industry

The court’s decision underscores the importance of protecting intellectual property rights in the pharmaceutical industry.

It serves as a strong reminder to pharmaceutical companies to safeguard their trademarks and copyrights to prevent unauthorized use and dilution.

By upholding the rights of innovators and protecting consumer interests, the court’s decision has far-reaching implications for the industry as a whole.

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