Bad Faith Adoption And Interim Injunction
The plaintiffs, Novartis AG and its affiliate, are globally recognized
pharmaceutical companies engaged in the manufacture, marketing, research, and
development of high-quality pharmaceutical products. They are the registered
proprietors of the trademark "NOVARTIS," which has been in use since 1996 and is
registered in multiple jurisdictions, including India. The plaintiffs contended
that the defendants, operating under the name "Novitas Lifesciences," had
adopted the mark "NOVITAS," which was almost identical to "NOVARTIS" both
phonetically and visually. The plaintiffs alleged that the defendants' use of
the impugned mark for pharmaceutical products amounted to trademark
infringement, passing off, and unfair competition, creating a likelihood of
consumer confusion. They sought a permanent injunction restraining the
defendants from using the mark "NOVITAS" or any deceptively similar variant.
Issues
The primary issue before the court was whether the defendants' adoption and use
of the mark "NOVITAS" amounted to infringement of the plaintiffs' registered
trademark "NOVARTIS." Additionally, the court had to determine whether the
plaintiffs had made out a prima facie case for the grant of an interim
injunction to prevent further use of the allegedly infringing mark pending final
adjudication.
Submissions of Parties
The plaintiffs submitted that the mark "NOVARTIS" was a well-known trademark
under Indian law, enjoying statutory and common law protection. They argued that
the defendants had dishonestly adopted "NOVITAS" by merely rearranging the
letters of "NOVARTIS," demonstrating bad faith and an intention to ride upon the
plaintiffs' goodwill. The plaintiffs also pointed out that the defendants'
domain name "novitaslifesciences.com" and their presence on e-commerce platforms
compounded the risk of consumer deception. They further contended that confusion
in the pharmaceutical sector posed serious public health risks. The defendants
failed to appear before the court, despite being duly served with summons.
Reasoning and Analysis of the Judge
The court observed that the plaintiffs had established a prima facie case of
trademark infringement and passing off. It noted that the marks "NOVARTIS" and "NOVITAS"
were deceptively similar, both visually and phonetically, which could mislead an
average consumer with imperfect recollection. Given the identical nature of the
goods—pharmaceutical products—the likelihood of confusion was significantly
high. The court emphasized that in the pharmaceutical industry, confusion
between two brands could have grave consequences for consumers. It also found
that the defendants' continued use of "NOVITAS" would cause irreparable harm to
the plaintiffs, as it could lead to dilution of the well-known "NOVARTIS" mark.
The balance of convenience was in favor of the plaintiffs, as allowing the
defendants to continue using "NOVITAS" would unfairly exploit the plaintiffs'
reputation.
Decision of the Judge
The court granted an interim injunction restraining the defendants, their
agents, distributors, and affiliates from using the mark "NOVITAS" or any other
deceptively similar trademark for medicinal or pharmaceutical preparations. The
defendants were also prohibited from using "NOVITAS" in their trade name, domain
name, or any promotional material. The court clarified that the defendants were
free to carry on their business under a different name that was not deceptively
similar to "NOVARTIS." The matter was listed for further proceedings, with
directions for filing replies and rejoinders within stipulated timelines.
Case Title: Novartis AG & Anr. v. Novitas Lifesciences & Anr.
Date of Order: February 3, 2025
Case No.: CS(COMM) 97/2025
Name of Court: High Court of Delhi
Name of Judge: Hon’ble Ms. Justice Mini Pushkarna
Disclaimer: The information shared here is intended to serve the public interest
by offering insights and perspectives. However, readers are advised to exercise
their own discretion when interpreting and applying this information. The
content herein is subjective and may contain errors in perception,
interpretation, and presentation.
Written By: Advocate Ajay Amitabh Suman, IP Adjutor - Patent and
Trademark Attorney
Email: ajayamitabhsuman@gmail.com, Ph no: 9990389539
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