Each of the plaintiff companies ("the plaintiff") is a pharmaceutical
company. It sells various medicinal products under different brand names.
They are a group. They call themselves the Mankind Group. The second
defendant was the Sales Manager of their Ahmedabad division in Gujrat.
The third defendant is his wife. The first defendant is a company promoted
by the husband and the wife.
This defendant company started selling eleven or twelve medicinal products,
under eleven different trade marks, in the market. Although the marks are
eleven, the medicinal products are twelve. A table showing the twelve
products and the eleven marks is set out below:
SAME COMPOSITION
SR. KEPLER BRAND KEPLER COMPOSITION MANKIND GROUP MANKIND
NO. NAME BRAND NAME GROUP
COMPOSITION
1 KEPODIL Cefpodomime KEPODIL Cefpodoxime
2 KEPREB Rabeprazole KEPREB Rabeprazole
3 D3FLOW Vitamin D3 D3FLOW Vitamin D3
4 KEPTRON Ondansetron KEPTRON Ondansetron
5 TWAGIC Aceclofenac + TWAGIC Aceclofenac +
Paracetamol Paracetamol
6 BEE12 OD Methylcobalamin BEE12 OD Methylcobala
min
7 KEP-X Terbutaline + KEP-X Terbutaline +
Guaiphenesin + Guaiphenesin
Bromhexine + Bromhexine
8 KEP-D Dextromethorphan + KEP-D Dextromethor
Chlorpheniramine phan +
maleate + Chlorpheniram
Phenylephrine ine maleate +
Phenylephrine
DIFFERENT COMPOSITION
SR. KEPLER BRAND KEPLER COMPOSITION MANKIND GROUP MANKIND
NO. NAME BRAND NAME GROUP
COMPOSITION
1 AMOKAV Amoxicillin + AMOKAV Amlodipine
Clavulanic acid Besilate
2 MOISER Cream Aloe Vera + Wheat MOISER Tablet Metformin
Germ Oil + Honey
Extract + Tea Tree Oil
Cream
3 KEPTAFINE Terbinafine KEPTAFINE Fluconazole
4 NOSIER Cetirizine + NOSIER Cetrizine
Phenylephrine +
Paracetamol + Zinc
One will notice that the mark KEP of the Mankind Group is also used with
slight variation by the defendants by the marks KEP-X and KEP-D.
What is shell shocking is that one brand is used to sell two different
medicinal preparations, one by the plaintiff and the other by the defendants.
This is the case with four brands tabulated in the second part of the table
above. The effect of this is disastrous. Take the brand AMOKAV. The
composition of the plaintiff's drug helps in reduction of hypertension
whereas the composition of the defendants` drug is a powerful antibiotic
used for many purposes. If a physician just wrote AMOKAV in the
prescription there was every likelihood of the wrong drug being handed out
by the pharmacist. I had pointed out the public danger in the sale of these
kinds of drugs in the interim order made by me in this application on 8th
November 2013, apart from the utter confusion that would be caused in the
trade.
The plaintiff is seriously aggrieved. They claim that all these eleven marks
were coined by them and belong to them. These marks have been allegedly
stolen by these defendants (hereafter "the defendants"). They are trading on
the goodwill of the plaintiff by marketing their medicinal products under
those brand names and making profit, according to the plaintiff. They seek
an order of injunction restraining the defendants from marketing these
eleven medicinal products. They want a Receiver to take possession of those
goods and destroy them so that they cannot be surreptitiously sold in the
market.
However, none of these marks are registered, although both the plaintiff and
the defendant companies have made applications for their registration.
There are four plaintiff companies. Mankind Pharma Ltd claims to be the
proprietor of seven out of eleven trade marks. The other three plaintiff
companies claims ownership of the other four marks. The group claims
ownership of the mark or brand KEP. They say that it stands for "Keep
effective protection".
On or about 8th November, 2013, four suits were filed by these plaintiffs.
Immediately thereafter, four interim applications were moved exparte before
me. On 8th November, 2013, I passed an interim order restraining the
defendants from selling the eleven products, appointed Joint Receivers to
take possession of the goods with the help of the police if necessary. The
interim order was made valid till 9th December and the applications made
returnable on 26th November, 2013.
On 22nd November, 2013, the defendants in each suit took out an
application for discharge of the interim order. In addition to this evidence,
both the parties handed over charts, tables, list of dates of facts pleaded and
even not pleaded, supplementary affidavits and so on. Counsel on both
sides agreed that the interim applications as well as the applications for
vacating the interim order could be disposed of on the said papers. From
time to time and lastly, till judgment, the interim order was extended, whilst
the matter was being heard.
It is very important to note that LifeStar Pharma Private Limited, a group
had employed the second defendant on 22nd August 2007 with retrospective
effect from 6th August 2007, as the Divisional Sales Manager, with his
headquarters at Ahmedabad at a gross annual remuneration of Rs.
497760/-The term of employment that is most important for the purposes of
this case is that he was forbidden from parting with confidential
information. Therefore, the terms of employment contemplated that he
would be entrusted with confidential information.
On or about 12th March, 2013 the plaintiff had approached an organisation
Prompact, by letter, to suggest brand names or trade marks for the eleven
medical products. By their letter dated 18th March, 2013 this organisation
had suggested inter alia these eleven marks. These marks were accepted by
the plaintiff and proposed to be used in their medicinal products. However,
they wrote to Daswani & Daswani on 20th March, 2013 to provide them a
report as to whether there were similar marks in the market, to which the
Attorneys replied on 21st March, 2013 that the proposed marks may be
adopted. They are as follows: 1. AMOKAV, 2. BEE12, 3. D3 FLOW, 4.
KEPODIL, 5. KEPTAFINE, 6. MOISER-500XR, 7. NOSIER, 8. TWAGIC, 9.
KEP SYRUP, 10. KEPTRON, 11. KEPREB.
The second defendant became aware that the plaintiff had adopted the
marks and intended to use them for their medicinal products, as will appear
from the letter of the plaintiff to him, dated 8th April, 2013. It is in the
following terms:
"To,
Harpal Vala,
Sales Manager,
Ahmedabad
We are sending you promotions material for Terbinaforce Dusting
Powder. Kindly start your market survey as per doctor selection.
You are also informed that we are launching the following
products KEPODIL for Cefpodoxime, MOISER for Metformin,
BEE12 for Mecobalamin + Vitamin B12, KEPTRON for
Ondensetron, KEPTAFINE for Fluconazale, NOISER FOR Cetrizine
Hydrochloride, TWAGIC for Aceclofenac and paracetamol combo,
KEP for Tebutaline Sulphate, AMOKAV for Amlodipine Besilate,
D3FLOW for Vitamin D3, and KEPREB for Rabeprazole. Trade
dispatches form depot, promotions & samples shall be dispatched
to concerned tem shortly. Kindly start doctor selection and keep
it ready.
As you also know that your Region did not do too well during the
last quarter we would expect much better results this time.
Rgd,
Dr. Sanjay Koul
Head PMT"
The plaintiff thinks that this was confidential information of the highest
degree and top trade secret entrusted by them with the second defendant.
On or about 11th April, 2013 the second defendant caused his wife, the third
defendant to incorporate the first defendant company, it is alleged. Her
husband continued to work with the plaintiff.
On 15th June, 2013, he submitted his resignation letter which was forthwith
accepted by the plaintiff. It appears from the records that although by this
letter, the second defendant had given one month's notice to the company,
the company discharged him forthwith.
Now it appears that the defendants applied for Drug Licence for the self-
same brands or marks or in the chemical composition constituting them.
The plaintiff also obtained similar licence, a few days before the defendants.
The plaintiff and the defendant started selling the products, quite
contemporaneously. The plaintiff was a few weeks ahead in the race. The
defendants' application for registration was earlier.
A helpful chart was handed up by counsel indicating the dates when the
drug controller granted permission, and the date of the first Invoice for each
product of the parties. This chart tends to show that in terms of making the
first sale each of the plaintiff's products was first in the market, although by
only a few days. The chart is inserted below:
According to learned counsel for the defendants, they had invented or
coined the mark. The process by which these names were coined was
mentioned in a sheet of paper handed up to this Court. It is as follows as
per table below:
KEPLER BRAND ADOPTION LOGIC
SR. Defendant's Brand Defendant's Adoption Logic Plaintiff Company
No.
It is astonishing that these eleven marks are identical to the marks claimed
to have been invented by the plaintiff. According to the defendants, the
plaintiff became aware that the defendants were preparing to market these
marks. Since the second defendant had left the employment of the plaintiff,
they had a deep grudge against him. They would not allow him to set up his
own business. So they decided to manufacture the self-same medicinal
products with the self-same trade marks or brand names. To establish prior
user they fabricated the correspondence made to the organisaiton Prompact,
apparently requesting them to coin the names. Further the defendants say,
the plaintiff pretended to write to Daswani & Co. Trade Marks attorneys for
verification whether the brands could be adopted by the company or not, by
a backdated letter, to create evidence of bona fide coinage of the marks.
The intention of the plaintiff is to kill the business of the defendants, it is
alleged.
Furthermore, it was submitted on behalf of the defendants that the plaintiffs
were marketing the self-same eleven products under different marks, as per
the table given later on in this judgment.
The plaintiff is still marketing these products under the said trade marks.
Therefore, having a substantial sale with the existing trade marks, there
was no need for the plaintiff to adopt eleven other marks and to propose to
sell the products under them. The stand of the plaintiff is that any person is
entitled to sell a product with more than one trade mark. Mr. Kapur
submitted that Glaxo & Co. was marketing paracetamol under two brand
names, Calpol and Crocin. Mr. S.N. Mookerjee, learned Senior advocate said
that sometimes the same product was sold by a manufacturer in two
geographical locations by two different marks.
It was also contended on behalf of the defendants that a mark could not be
a trade secret. An industrial process may be a secret but a mark could not
be so. Therefore, the basic case of the plaintiff of theft of trade secrets had
no basis.
The defendants maintained that they made prior use of the marks. They
were entitled to use the eleven marks.
Therefore, a few basic issues arise for consideration in this interim
application:
i) Whether coinage of the subject trademarks could be called a trade
secret or confidential information?
ii) Whether the defendants were guilty of stealing this trade secret from
the plaintiff?
iii) Whether the defendants were guilty of passing off their goods as those
of the plaintiff?
A Division Bench judgment of Ruma Pal J. in the case of Allergan Inc Vs.
Milment Oftho Industries and Others reported in AIR 1998 Cal 261 had
settled several important points in this branch of the law. In the case of a
passing off action, where both the marks are unregistered, prior user of the
mark would entitle its owner or licensee to claim its exclusive use. It does
not matter whether a particular product is actually sold in a particular
market. "Reputation of a product (international) may precede its
introduction and may exist without trade in such product in the company."
If at an earlier point of time, the mark is able to establish some kind of
reputation in the market then the owner of that mark can claim exclusive
use thereof. In other words, the people must be able to make some kind of
association of a particular mark with its source or manufacturer. "The
reputation must be well established or a known one".
Justice Pal went out to say:
"16. First it is not essential for the plaintiff
to prove long user to establish reputation in
a passing off action. It would depend upon
the volume of sales and extent of
advertisements. In Stanard v. REAY, 1967
(19) RPC 589 the plaintiff started a business
under the name of Mr. Chippy of selling fish
and chips from a van. Three weeks later the
defendant also started same business under
the same name. Allowing the application of
the plaintiff to restrain the defendants from
using the same name, Buckley J. found on
evidence that even in the 3 short weeks the
sale was sufficient to establish a connection
in the mind of the public between the name
Mr. Chippy and the plaintiff's business.
Similarly in Consolidated Foods Corporation
v. Brandon & Co., AIR 1965 Bom 35 it was
said: "A trader acquires a right to property
in a distinctive mark irrespective of length
of user or extent of his trade". The question
according to Their Lordships is - who gets
there first?"
Mr. Debal Banerjee, learned Senior Advocate cited this in submitting that
the Court has to appreciate the prima facie case on the basis of the records
before it. It has to take the record as correct, unless on their face the
records appear to be forged, fabricated or distorted.
"22. There is evidence of voluminous sales
of the appellant's product OCUFLOX both in
terms of quantity and value world wide from
1992 before the respondent thought of the
name. At the interlocutory stage, where the
deponents to the affidavits are not
subjected to cross-examination, the Court
necessarily has to proceed on the basis of
affidavit of evidence. There is no reason at
this stage to disregard the statements made
on path by the appellant." (Allergan case)
He urged me to declare the plaintiff as the first user of the subject marks, or
their inventor, as they had furnished prima facie proof of prior user. (See
also Satyam Infoway Vs. Sifynet Solutions reported in (2004) 6 SCC 145,
cited by Mr. Kapur)
Mr. Banerjee submitted that the plaintiff had brought adequate materials-
on-record to prima facie prove its case that they were the prior user of the
marks.
Mr. Gupta had pointed out, discrepancies here and there, in the documents
and in the case of the plaintiff. But he was unable to show that the evidence
relied upon by the plaintiff were on the face of it false or fabricated.
In those circumstances the plaintiff was entitled to rely on those documents.
The start dates of the production of the plaintiff's products and that of the
defendants' products were only a few weeks apart. Obtaining the drug
controller's licence was also a close race. Prior user of the plaintiff, if at all,
according to Mr. Gupta, was small. He relied on the following passage of
Uniply Industries Ltd. Vs. Unicorn Plywood Pvt. Ltd. And Others
reported in (2001) 5 SCC 95:
"8. Some courts indicate that even prior
small sales of goods with the mark are
sufficient to establish priority, the test
being to determine continuous prior user
and the volume of scale or the degree of
familiarity of the public with the mark.
Bona fide test of marketing, promotional
gifts and experimental sales in small volume
may be sufficient to establish a continuous
prior use of the mark. But on some other
occasions courts have classified small scales
volume as so small and inconsequential for
priority purposes. Therefore, these facts will
have to be thrashed out at the trial and at
the stage of grant of temporary injunction a
strong prima facie case will have to be
established. It has also to be borne in mind
whether the appellant had also honestly and
concurrently used the trade marks of there
are other special circumstances arising in
the matter. The courts below have merely
looked at what the prima facie case is and
tried to decide the matter without
considering the various other aspects
arising in the matter. Therefore, we think,
the appropriate order to be made is that
injunction either in the favour of the
appellant or against them or vice versa is
not appropriate and the proceedings in the
suit shall be conducted as expeditiously as
possible or the Registrar under the Trade
and Merchandise Marks Act, 1958 may
decide the matter which may govern the
rights of the parties."
On this he argued that the order of injunction was not an appropriate
remedy and that the trial should be expedited.
The above Supreme Court judgment would be applicable to this case if it
was only a case of doubtful prior user or negligible prior user. But this case
is quite different for many reasons. The first and foremost is that
preparation of medicinal products is involved. In such a case there is no
room for any doubt or confusion with regard to the mark. Public health is
involved. Public danger is to be avoided. The Court would not allow marks
even slightly resembling each other so as to protect public health. The
Courts have to be extra careful with regard to medicinal preparations. (See
Cadila Health Care Ltd. Vs. Cadila Pharmaceuticals Ltd. reported in
(2001) 5 SCC 73 Paras 28 and 32 and Milmet Oftho Industries And
Others Vs. Allergan Inc. reported in (2004) 12 SCC 624 Paras 7 and 9
read with Ciba Geigy Ltd. Vs. Crosslands Research Laboratories Ltd.
reported in (1996) 16 PTC Page 1; Pfizer Products Inc. Vs. Rajesh
Chopra and Ors. reported in 2007 (35) PTC 59 (Del))
Therefore, of two similar marks selling the same product of two different
manufacturers, only one mark can circulate in the market and not two.
Hence, even if there is only marginal prior user by the plaintiff, the
defendants' marks have to give way.
Moreover, the defendants are using four marks, the chemical composition of
which is different from those four products sold by the plaintiff under
identical names. For e.g., AMOKAV is sold by the plaintiff to reduce
hypertension, whereas, it is sold by the defendants to kill bacteria. This is
dangerous. It is fraught with the danger of a wrong AMOKAV being sold to a
patient, causing him immense damage, if not death.
There is an added reason also. The second defendant was an employee of
the plaintiff. His contract of employment provided for confidential
information of the company to be held by him. Therefore, when the plaintiff
and the second defendant come out with the same marks, there is a strong
presumption against the second defendant having pilfered the information
or mark of his employer.
The plaintiff argues that the second defendant was their Sales Manger in
Ahmedabad. He held a very responsible position. He knew their trade
secrets and held their confidential information. He was aware of the
plaintiff's coinage of the eleven marks. He had misutilised the information
for this gain and causing loss to his employers.
The case of Lamb Vs. Evans, a Court of Appeal decision and reported in
1893 (1) CH 218 cited by Mr. Kapur, learned Senior Counsel was a
copyright case. A trade dictionary of advertisements was arranged under
careful composed headings. The Court of Appeal declared that copyright
existed in those headings. The next two cases cited by the samelearned
Counsel Morison V. Moat reported in 9 HARE [241] 492 and Amber Size
And Chemical Company, Limited Vs. Menzel reported in 1913 (2) CH
239 are more important. Morison V. Moat related to a secret process of
preparing a medicinal preparation. It appears that the medicinal
preparation was the product of a secret compound of a person called
Morison. It was held that Morison had a right to the trade secret not being
divulged and could restrain anybody from doing so. Similar was the case of
Amber Size And Chemical Company, Limited Vs. Menzel reported in
1913 (2) Ch 239, although this case concerned a secret process of
manufacture. The principles laid down in this decision go far enough to say
that whenever an information had been communicated to an ex-servant
with the understanding expressed or implied that he would not make an
improper use of it to the detriment of his master, he could be restrained
from doing so. The following passage in the judgment of the said decision is
very important:
"In my view, after giving the
authorities the best attention I can,
the law stands thus:- The Court will
restrain as ex-servant from
publishing or divulging that which
has been communicated to him in
confidence or under a contract by
him, express or implied, not to do so:
Morison V. Moat (1), and generally
from making an improper use of
information obtained in the course of
confidential employment: Truck &
Sons V. Priester (2), and, further,
from using to his late master's
detriment information and
knowledge surreptitiously obtained
from him during his, the servant's,
employment: Robb V. Green.(3)"
In the case of Saltman Engineering Co. Ltd. And Others V. Campbell
Engineering Co. Ltd. reported in [1963] 3 ALL ER 413 (The citation is
wrong. It is a much earlier case reported in 65 RPC 203), also cited by Mr.
Kapur, Lord Greene sitting in the Court of Appeal said that an information
to be confidential must have the necessary "quality of confidence about it".
It must have some originality. The Court said "what makes it confidential is
the fact that the maker of the document has used his brain and thus
produced a result which can only be produced by some body should goes
through some process". The Court referred to a formula, a plan, a sketch or
something of that kind".
Lord Greene added:
"If a defendant is proved to have used
confidential information, directly or
indirectly obtained from a plaintiff, without
the consent, express or implied of the
plaintiff, he will be guilty of an infringement
of the plaintiff's rights."
The springboard concept was of Roskill J in Cranleigh Precision
Engineering Ltd. V. Bryant reported in [1964] 3 ALL E.R. 289 at pages
301 and 302, relied on by Mr. Kapur. His lordship observed as follows:
"As I understand it, the essence of this
branch of the law, whatever the origin of it
may be, is that a person who has obtained
information in confidence is not allowed to
use ti as a springboard for activities
detrimental to the person who made the
confidential communication, and
springboard it remains even when all the
features have been published or can be
ascertained by actual inspection by any
member of the public."
Lord Denning adopted the above principles in the case of Seager V.
Copydex Ltd. reported in [1967] 2 ALL ER 415, referred to, by Mr. Kapur.
He thought that he who had received information in confidence should not
take unfair advantage of it nor shall use it to the detriment of the person
reposing the confidence, without his consent. Mr. Megarry J grappling with
the question as to when an information had to be considered as secret or
confidential thought that the Courts would have to fall back upon the test
by which a reasonable man would consider an information to be confidential
or secret. (See Coco V. A.N. Clark reported in [1969] RPC Page 41), cited
by Mr. Gupta.
A full description of all confidential information had to be given by the
plaintiff to enable the order of injunction to be certain and to enable the
defendant to know what case to meet, (See the case of Ocular Sciences Ltd.
& Anr. V. Aspect Vision Care Ltd. & Ors. reported in [1997] R.P.C. 289),
cited by Mr. Gupta. A Malasyan decision in the case of Electro Cad
Australia Pty Ltd. And Others V. Mejati Rcs Sdn Bhd And Others
reported in FSR (1999) 291 was also cited by Mr. A. Gupta. This decision
expands the same principle as propounded in the earlier English cases.
These principles were followed in the case of Lancashire Fires Limited V.
S.A. Lyons & Company Limited And Others reported in Fleet Street
Report (1996) 629. (See also Harvy Tiling Company (Pty.) Limited V.
Rodomac (Pty.) Limited And Another reported in [1977] RPC 399), cited
by Mr. Pratap Chatterjee, learned Senior advocate.
The letter of 8th April, 2013 of the plaintiff to the second defendant clearly
fulfils the factual requirements of the above judgments. The trade names of
the proposed drugs were disclosed by Dr. Sanjay Kaul, Head PMT to the
second defendant and further notifying him that those products were
shortly to be launched in the market by the plaintiff. Furthermore, the
second defendant was asked to start the "market survey" and "doctor
selection". He was also told that his region was not also doing well at that
stage. Therefore, information was given to the second defendant regarding
the trade marks, the company was proposing to market. The second
defendant was requested to do market survey, improve sales, and make
proper "doctor selection". Therefore, this information was given to the said
defendant with the confidence that it would be acted upon for the benefit of
the plaintiff and not to its detriment.
Having held that the plaintiff had prior use of the eleven marks, I also hold
that it is possible for information regarding coinage of new trade marks to
be classified as trade secrets and confidential information of an employer
which may be entrusted with an employee. Furthermore the second
defendant held the confidential information and trade secret of the plaintiff
in respect of these eleven marks. He misutilised the same for his own gain
and causing loss to the plaintiff. In the case of The British India Corpn.
Ltd. Vs. Kharaiti Ram and Ors. reported in 2000 AIR (Delhi) 289 cited by
Mr. Kapur, the Court observed as follows:
"12. It is an admitted positionb that the
respondent No. 1 was an employee of the
petitioner from 19-6-1946 till he was
dismissed from service on 26-11-1985. The
said respondent No. 1 has adopted a trade
mark which is almost similar to that of the
petitioner i.e. ''DWM-DHARIWAL' as against
'DHARIWAL' of the petitioner and also using
the same device as also using the trade
mark in the same script. The adoption of
the aforesaid trade mark cannot be said to
be an honest adoption, for dishonesty is
writ large on the face of the record. In
Consolidated Foods Corporation v. Brandon
and Co.; AIR 1965 Bombay 35 it was held
that the discretion under Section 12 (3) of
the Act can only be exercised where two or
more parties unknown to each other are
unaware of the mark used by each other
innocently adopt and use the same mark in
respect of their respective goods of the
same nature. The present is a case of a
contrary nature, for the parties were known
to each other, the respondent No. 1 being an
employee of the petitioner for a long period
of time till he was dismissed from service
and therefore, respondent No. 1 was fully
aware of the trade mark used by the
petitioner. Even in spite of such awareness
he proceeded to adopt deceptively similar
trade mark and thus the user cannot be said
to be honest concurrent user. Thus the
adoption of the trade mark is also against
the provisions of Sections 12 and 18 of the
Act."
Before proceeding to the next issue one question requires consideration. In
the midst of hearing of these applications, Mr. Ajay Gupta, learned senior
advocate for the defendants revealed, that for each of these 11 trade names
or marks, the plaintiff had existing marks or brands. This meant that the
plaintiff was marketing a particular composition with more than one mark
or brand name, one already existing and the other claimed to have been
coined by them and recently introduced in the market. A table provided by
Mr. Gupta is very helpful and is inserted below.
The defendants produced evidence in the supplementary affidavit that the
existing brands and the newly introduced brands were being marketed at
the same time by the plaintiff. The plaintiff in their rejoinder of the
supplementary affidavit very casually stated that they were entitled to do so.
Learned Counsel on both sides advanced arguments.
Mr. Debal Kumar Banerjee, learned senior advocate stated that one product
may be marketed through two brands by the same manufacturer. But one
brand could not have two manufacturers or sources. Mr. S.N. Mookerjee,
learned Senior advocate said that different marks may be used by a
manufacturer in different geographical locations.
Mr. Gupta submitted that the contention of Mr. Banerjee was correct but as
far as a medicinal preparation was concerned a particular molecular
formulation could not be sold under two brands or trade names/marks
which could cause deception to the public.
I consulted KERLY on trade marks. KERLY states
" 8. Miscellaneous points
8.1 Primary, Secondary And Limping Marks
Potentially, this is a problem which faces any trader who
claims that there is more than one badge of origin for his
product or service. The trader has a primary mark which
the public see as a badge of origin. However, the trader
wishes to establish a secondary mark as an additional
badge of origin. Whether he succeeds obviously depends
on the facts. The potential problem is avoided if, for
example, the secondary mark has an inherent distinctive
character of its own particularly if such a mark joins a
group of other secondary marks on a range of products all
sold under a recognised house mark. However, the
problem faces any trader who adopts as his secondary
mark a descriptive or laudatory word, some feature of the
goods or their get-up which is seen as decorative or,
worse, functional. The problem inherent in the mark itself
is then compounded by being used in conjunction with a
distinctive mark.
Here, the trader faces a dilemma. He does not want to
remove his primary distinctive mark form the product
altogether, for fear that the public would then be unable
to identify the origin of the product. On the other hand,
he must reduce the public's reliance on the primary mark
and attempt to increase recognition and hence reliance
on the secondary mark or feature of the product. This
exercise is very difficult to do on the product itself, but is
much easier to achieve in advertising where a campaign
emphasizes the secondary mark to the public. In time,
the advertising may even drop the primary mark,
indicating a degree of confidence on the part of the trader
in the ability of his secondary mark to distinguish."
Fifteenth Edition of Year 2011
Hence, one manufacturer or source may have two marks or brands.
Therefore the plaintiff's simultaneous use of two marks for a product is not
wrongful.
For all those reasons each of the interim applications (G.A. No. 3276 of
2013, G.A. No. 3277 of 2013, G.A. No. 3278 of 2013 and G.A. No. 3279 of
2013) succeeds. In each of these applications, I confirm the interim order
dated 8th November, 2013, subject to the modification below till the disposal
of the suit. The Joint Special Officers are to continue till the disposal of the
suit. Each of the Joint Special Officers may be paid a further ad hoc
remuneration of 1200 GMs by the plaintiff-petitioner and thereafter 300
Gms per month from February, 2014.
The defendants will, however, have the option of removing the active
ingredients, only from the bottles, sachets, phials, strips, cartons etc. seized
by the Special Officers under their strict supervision. The other materials
are to be retained by the Joint Special Officers. These chemicals may be
used by the defendants for whatever purpose they like, without infringing
the subject trade marks, in accordance with law.
Each of the applications (G.A. No. 3425 of 2013, G.A. No. 3426 of 2013, G.
A. No. 3427 of 2013 and G.A. No. 3428 of 2018) for discharge of the interim
order dated 8th November, 2013 is hereby dismissed.
Urgent certified photocopy of this judgment/ order, if applied for, be
supplied to the parties subject to compliance with all requisite formalities.
(I.P. MUKERJI, J.)