PAY ₹1.5 CR TO KERALA FUND: HC TO ERRANT PHARMA FIRM

MUMBAI: The Bombay high court (HC) directed a pharmaceutical company found violating the trademark of a pharmaceutical giant, to pay ₹1.5 crore to the chief minister’s relief fund in order to help the flood-hit state of Kerala.

The bench of justice SJ Kathawalla was hearing a suit filed by the well-known pharma giant against another pharma firm and the company producing products for it, for indulging in passing off of a well-known skin care product of the former. The HC was informed that the errant pharma firm had been a consistent infringer since 2003.

The pharma giant informed the court that in 2003 too, the firm had been warned of copying its products for which the firm had apologised and given an undertaking to desist from doing so. However, since 2007-08 it had been passing off a skincare product by making the label of the skincare product very similar to the one made by the pharma giant, to make profits.

The court appointed a receiver to look into the issue and found the allegations to be true. The receiver found that from 2007 to 2018, the company had produced and sold more than 65 lakh tubes of the skincare product.

The bench was also informed that the Food and Drug Administration department had found products of the other pharma firm to be spurious and hence, heavy costs should be levied on them so that it may deter them from copying the brand, artwork and label of other companies for profit. After perusing through the evidence, the bench ordered the accused errant pharma company to pay ₹1.5 crore to the pharma giant. However, the pharma giant sought the court to direct the smaller firm to contribute it to some charitable work. After the firm agreed , the court directed it to donate the ₹1.5 crore to the Kerala Chief Minister’s Distress Relief Fund. The bench also directed the firm to adhere to all norms of the FDA and to give an undertaking not to resort to copying and selling brands and products owned by other firms.