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Bombay High Court Decrees Against The Infringer For A Whopping
Amount Of 1.5 Crs To Be Paid To Kerela Relief Fund)
Glenmark Pharmaceutical, which has been always vigilant of their
products and IP rights was successful in instituting an IP
infringement suit against Galpha Laboratories, which resulted in a
distinct judgment and a whooping amount of 1.5 Crore damages to be
paid by the infringer as a donation to Kerala flood relief.
Galpha Laboratories were involved with manufacturing of the
infringing medical product under the infringing trademark
"Clodid B" deceptively similar to the
Plaintiff's famous medical product of Plaintiff –
"Candid -B".
The Bombay High Court relied heavily on the judgment pronounced
by Delhi High Court in the Win-Medicare Pvt. Ltd. Vs. Galpha
Laboratories Ltd. & Ors.1, which declared the
defendant a 'habitual infringer' as was evident from many
cases that has been instituted against it by various parties such
as Times Drugs and Pharmaceuticals (P) Ltd., Smithkline Beecham PLC
and Jagsonpal Pharmaceuticals Ltd.
The plaintiffs highlighted that Galpha Labs has sold the
impugned goods bearing the mark CLODID worth Rs 2.92 crores
(approx). The Court also found out that Defendant's drugs and
medicine do not meet the standard as prescribed by the Government
authorities and FDA regulations and thus, raised concerns over the
health of consumers and general public, who are being repeatedly
cheated by the Defendant.
After repeatedly being sued by other pharmaceutical companies
for their IP infringement and found guilty thereon, the Defendants
were audacious to carry on manufacturing substandard, infringing
medicinal product. Thus, the hon'ble Court held the Defendant
liable and opined that they are a habitual offender with a set
modus operandi of copying brands of other companies to make
profits.
Although, the defendant submitted that he is willing to submit a
decree and bring the present suit to an end. But looking at
continuous and habitual act of infringement by the Defendant, the
Court decreed against the defendant, a whopping amount of 1.5 Cr as
damages along with permanently restraining them from using the
infringed product. The Court also directed the infringing party to
manufacture the product in compliance of FDA regulations.
Such serious damages were ordered by the Hon'ble Court to
deter the infringer from infringing other products. Such judgment
showcases firstly, the seriousness of the Judiciary with
respect to the protection of intellectual Property, and
secondly, the changing nature of punishment from
mere penalty to punitive damages imposed upon the infringer as
actual deterrent factor is when defendants have to participate in
the proceedings and have to shell out money from their pockets.
Another prominent factor of this judgment was that the Court
ruminated over the catastrophe that has hit Kerala recently, which
has been categorized as L3 Level of Disaster by the National
Disaster Management Guidelines. Therefore, the Defendant was
directed to pay the damages to the Chief Minister's Distress
Relief Fund, with the consent of the Plaintiffs.
Such kind of damages decreed against defendants helps in
maintaining transparency among public, thereby keeping faith among
them and provides incentives to the entities in
knocking the doors of the Judiciary for restoration and enforcement
of IP rights.
Footnote
1 Win-Medicare Pvt. Ltd. Vs. Galpha Laboratories Ltd.
& Ors. reported in 2016 (65) PTC 506 (Del)
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