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2023 Supreme(Del) 833

IN THE HIGH COURT OF DELHI AT NEW DELHI
C. Hari Shankar, J.
Glaxo Group Limited – Appellant
Versus
Maiden Pharmaceuticals Limited – Respondent
CS(COMM) 75 of 2023
Decided On : 06-04-2023

Advocates appeared:
Mr. Urfee Roomi, Ms. Janaki Arun, Mr. Alvin Antony and Mr. Anubhav Chhabra, Advocates, for the Plaintiff.
Mr. Inderdeep Singh and Mr. Chander Shekhar Patney, Advocates, for the Defendant.

The main legal point established is that an intent to copy the plaintiff's mark, phonetic similarity, and the use of abbreviations in pharmaceutical product names are crucial factors in determining trademark infringement.

Headnote:

TRADEMARK INFRINGEMENT - Trade Marks Act, 1999 - Section 29(2)(b) - [29] - [SUMMARY]

Fact of the Case:

The plaintiff alleged that the defendant's use of marks BETASON, BETNOMAID, and MEDNOVATE infringed the plaintiff's registered trademarks BETNESOL and BETNOVATE under the Trade Marks Act, 1999.

Finding of the Court:

The court found that the mark BETASON did not infringe the plaintiff's mark BETNESOL, but granted an injunction against the use of marks BETNOMAID and MEDNOVATE by the defendant.

Issues: The issues revolved around the phonetic similarity of the marks, the use of abbreviations in pharmaceutical product names, and the intent to copy the plaintiff's mark.

Ratio Decidendi: The court held that phonetic similarity must be proximate, not remote, and that the use of abbreviations in pharmaceutical product names is permissible. It also emphasized that an intent to copy the plaintiff's mark could lead to a finding of infringement.

Final Decision: The court partly allowed the application, granting an injunction against the use of marks BETNOMAID and MEDNOVATE, but rejecting the injunction in respect of the mark BETASON.

JUDGMENT (Oral)

I.A. 2642/2023 (Order XXXIX Rules 1 and 2 of the CPC)

1. The plaintiff asserts the marks BETNESOL and BETNOVATE, which stand registered under the Trade Marks Act, 1999 in its favour with effect from 21st February 1961 and 5th December 1963 respectively.

2. The plaintiff alleges that the defendant, by using the marks BETASON, BETNOMAID and MEDNOVATE, is infringing the aforesaid registered trademarks of the plaintiff, within the meaning of Section 29(2)(b)1 [29. Infringement of registered trade marks.-- ***** (2) A registered trade mark is infringed by a person who, not being a registered proprietor or a person using by way of permitted use, uses in the course of trade, a mark which because of-- ***** (b) its similarity to the registered trade mark and the identity or similarity of the goods or services covered by such registered trade mark; ***** R<> is likely to cause confusion on the part of the public, or which is likely to have an association with the registered trade mark] of the Trade Marks Act.

3. The active pharmaceutical ingredient (API) in all these five products, it may be noted is betamethasone. BETNESOL contains betamethasone alone, whereas BETASON, BETNOVATE, BETNOMAID and MEDNOVATE contain betamethasone with neomycin. Betamethasone is a corticosteroid.

4. BETNOVATE, BETNOMAID and MEDNOVATE are skin creams, though BETNOMAID is also available in the form of eye/ear drops. BETNESOL and BETASON are dispensed as tablets and as eye and ear drops.

Rival Contentions

5. Petitioner`s submissions

5.1. Mr. Urfee Roomi, learned Counsel for the plaintiff, submitted that the defendant`s marks BETASON, BETNOMAID and MEDNOVATE are phonetically similar to the plaintiff`s corresponding marks BETNESOL and BETNOVATE. He submits that, owing to the common letters "BET" and "SO", the names BETASON and BETNESOL are phonetically similar. He also relies, in this context, that on the fact that each of these words comprises three syllables and that the first syllable is the same, i.e. "BET" and the third syllable in each of the words "SON" and "SOL" are phonetically similar.

5.2. Apropos the defendant`s marks BETNOMAID and MEDNOVATE, Mr. Roomi submits that the defendant has, craftily, as he would put it, dissected the plaintiff`s BETNOVATE mark and used the first five letters of the mark i.e. "BETNO", as the first five letters of the mark BETNOMAID and the last six letters of the mark "NOVATE" as the last six letters of the mark MEDNOVATE. BETNOMAID and MEDNOVATE contain the same chemical constituents as BETNOVATE, i.e. betamethasone and neomycin and, in thus partly copying the plaintiff`s BETNOVATE mark in one and partly in another, Mr. Roomi submits that bad faith on the part of the defendant is transparently apparent.

5.3. As the products in question are pharmaceutical preparations, Mr. Roomi submits that his client is entitled to an interlocutory injunction against the use, by the defendant, of the impugned BETASON, BETNOMAID and MEDNOVATE marks, pending disposal of the suit.

6. Defendant`s submissions in reply and findings thereon

6.1. Preliminary objections:

6.1.1. Responding to the submissions of Mr. Roomi, Mr. Inderdeep Singh on behalf of the defendant raised a preliminary objection based on the Power of Attorney that the plaintiff has placed on record, which authorises the plaintiff to institute the plaint. He submits that the authorization granted to the plaintiff to sue the defendant Maiden Pharmaceuticals Limited refers only to the plaintiff`s marks BETNESOL and BETNOVATE and makes no reference to the defendant`s marks. The relevant paras 1 and 2 of the said authorisation may be reproduced thus.

    "1. To represent the Company in civil proceedings, including appeals, instituted by the Company against Maiden Pharmaceuticals Limited (hereinafter "MPL"), a company incorporated under the provisions of the Companies Act, 1956 and any other individuals, companies or entities that are related or affiliated to the aboveno

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