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2019 Supreme(Bom) 1202

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
K.R. SHRIRAM, J.
Aglowmed Limited - Appellant
Versus
Aglow Pharmaceuticals Private Limited - Respondent
Commercial IP Suit No.15 of 2005
Decided On : 30-07-2019

Advocates Appeared:
For the Appellant : Mr. Mahesh A. Mahadgut a/w. Ms. Poonam Teddu i/b. Mr. Mahesh A. Mahadgut.
For the Respondent: Mr. A.W. Ansari.

Headnote:

Plaintiff, a pharmaceutical company, filed a suit against defendant, also a pharmaceutical company, for infringement of its registered trademark 'AGLOWMED' and passing off of its goods as plaintiff's. Plaintiff sought permanent injunction, damages, and an account of profits.

Fact of the Case:

Plaintiff had been using the trademark 'AGLOWMED' since 1983 and had acquired a reputation and goodwill in the market. Defendant was incorporated in 1992 and adopted the name 'AGLOW' for its corporate name and used it in its pharmaceutical products. Plaintiff contended that defendant's use of the word 'AGLOW' was deceptively similar to its trademark 'AGLOWMED' and was likely to cause confusion among consumers.

Finding of the Court:

The court held that defendant's use of the word 'AGLOW' in its corporate name and products was an infringement of plaintiff's registered trademark 'AGLOWMED' and amounted to passing off of defendant's goods as plaintiff's. The court found that the two names were deceptively similar and were likely to cause confusion among consumers, especially considering that both companies were in the same pharmaceutical business. The court also noted that defendant had not provided any valid reason for adopting the name 'AGLOW' and that its use of the name was likely intended to capitalize on plaintiff's reputation and goodwill.

Issues: 1. Whether plaintiff is the registered proprietor of Trade Mark AGLOWMED in Class 5 under Registration No.415101 dated 02.01.1984? 2. Whether by use of the mark 'AGLOW' defendants have infringed plaintiff's trade mark AGLOWMED? 3. Whether plaintiffs have acquired goodwill and reputation in the trade mark AGLOWMED? 4. Whether by use of word AGLOW in the corporate name of defendant, defendants are passing off their goods and/or services as and for plaintiff's goods and/or services? 5. Whether plaintiffs is entitled to the relief of permanent injunction as prayed for? 6. Whether plaintiffs are entitled for damages or alternately accounts of profits as prayed for? 7. What relief and what order?

Ratio Decidendi: The court applied the principles of trademark infringement and passing off to reach its decision. The court held that defendant's use of the word 'AGLOW' in its corporate name and products was likely to cause confusion among consumers and that defendant had not provided any valid reason for adopting the name 'AGLOW'. The court also considered the fact that both companies were in the same pharmaceutical business and that defendant's use of the name 'AGLOW' was likely intended to capitalize on plaintiff's reputation and goodwill.

Final Decision: The court granted a permanent injunction restraining defendant from using the word 'AGLOW' in its corporate name and products. The court also directed defendant to deliver up all products, cartons, labels, goods, articles, dies, papers, and all other things bearing and/or containing reference in any manner whatsoever to the impugned name 'AGLOW' for destruction without compensation. Additionally, defendant was directed to apply to the Registrar of Companies, Patna, for a change of name within two weeks of the judgment being uploaded, and the new name was not to contain the trade name 'AGLOW'. The court awarded costs in the sum of Rs. 2 Lakhs to be paid by defendant to plaintiff within four weeks.

JUDGMENT :

1. Plaintiff has approached this Court seeking (a) permanent injunction against defendant from using in relation to its business of manufacturing, marketing, selling, trading, exporting medicinal and pharmaceutical preparations and substances using the trading name 'AGLOW' or any other trading name or mark as part of its trading style or corporate name that is identical and/or deceptively similar to plaintiff's trading name/mark/trading style/corporate name 'AGLOWMED' and/or using the word 'AGLOW' or and other word/name/mark identical and/or deceptively similar to plaintiff's mark 'AGLOWMED' and prevent defendant from infringing the registered trade mark of plaintiff 'AGLOWMED' bearing no.415401 dated 02.01.1984 and (b) to restrain defendant from using the trading name 'AGLOW' or and other word/name/mark identical and/or deceptively similar to plaintiff's mark 'AGLOWMED' in relation to defendant's medicinal and/or pharmaceutical preparations so as to pass off defendant's business or goods as plaintiff's goods. Plaintiff is also claiming damages in the sum of Rs.5,00,000/.

2 Plaintiff is a company that was incorporated on 07.11.1983 with the trading name/trading style 'AGLOWMED' as its dominant and memorable feature. Since then plaintiff has been carrying on business of manufacturing and selling of pharmaceutical preparations. Plaintiff has been making and selling various pharmaceutical products like aglozyme syrup, aglozyme capsules, pancef injections and aglonim and various other products.

3 According to plaintiff, and it is not contradicted by defendant, that the word 'AGLOWMED' is a meaningless word. The word 'AGLOWMED' is a part of plaintiff's trading name, trading style which prominently appears on all its products including its business literatures, advertisements, visual aids, etc. The annual turn over of plaintiff for the year 2003-2004 was Rs.7246.42 lakhs. Plaintiff has a wide network of distribution of its products in India and abroad with depots in several locations and employs around 800 people. It is also stated in the plaint that plaintiff has been exporting its goods to several countries like Russia, Europe, London, Ukraine, Angola, Ghana, Nigeria, Liberia, Sierra Leone etc. Plaintiff is also recognised as an export house. Plaintiff's range includes products in various segments like Vitamins, Antibiotics, Antibacterial, Antidiabetic, Analgesic, Haematinic, Digestive Enzymes, Antiamoebic, Antidiarrhoeal, Antioxidant, Antidepressant, Antiulcer, Antihistamine, etc. Plaintiff has three manufacturing facilities at three different locations, viz., Roorkee, Daman and Ankleshwar. Plaintiff is a registered proprietor of 'AGLOWMED' in several classes under the provisions of The Trade Marks Act, 1999, list of which can be found in paragraph 5 of the plaint. Plaintiff's turn over from 1990-1991 upto 2003-2004 were as under :

Year

Turnover (in Lacs)

1990-1991

Rs.730.96

1991-1992

Rs.889.64

1992-1993

Rs.1,127.48

1993-1994

Rs.1,267.33

1994-1995

Rs.1,695.84

1995-1996

Rs.1,596.31

1996-1997

Rs.1,958.39

1997-1998

Rs.2,480.24

1998-1999

Rs.3,509.64

1999-2000

Rs.3,850.85

2000-2001

Rs.4,769.92

2001-2002

Rs.6,061.34

2002-2003

Rs.5,925.50

2003-2004

Rs.7,246.42

4 Plaintiff claims to have spent large sums of money towards sales and promotional expenses as stated in paragraph 7 of the plaint and it reads as under :

Year

Turnover (in Lacs)

1990-1991

Rs.234.34

1991-1992

Rs.301.92

1992-1993

Rs.365.36

1993-1994

Rs.420.44

1994-1995

Rs.539.59

1995-1996

Rs.543.45

1996-1997

Rs.629.19

1997-1998

Rs.773.66

1998-1999

Rs.1,081.40

1999-2000

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