Background
Johnson & Johnson (J&J) filed a lawsuit in 2019 against M/s Medserve and others for counterfeiting and illegally selling J&J’s medical products, including SURGICEL, a product used in surgical procedures.
Key Findings
- The defendants were found guilty of manufacturing and selling counterfeit SURGICEL products, which posed severe risks to patient safety.
- The counterfeit products were sold in India and exported to other countries, including the US.
- The court held that the defendants’ actions constituted trademark infringement, copyright infringement, and passing off.
Court Ruling
The Delhi High Court ruled in favor of J&J, awarding ₹3.34 crore in damages. The breakdown of the award is as follows:
- ₹2.34 crore in compensatory damages for the harm caused to J&J’s business and reputation.
- ₹1 crore in exemplary damages to deter future infringements.
Quotes from the Court and Judgment
“The evidence presented before the Court, including invoices, bank receipts, and chat extracts, establishes without a doubt that defendant no. 1 has received substantial financial gains in the course of carrying out the infringing and counterfeiting activities,” the Court said.
“I am convinced with the evidence presented and submissions made by the counsel for Plaintiff and conclude that a conservative profit margin of 25% can be assumed for awarding actual damages in favour of the plaintiff and against the defendants in the present case,” the judgment said.
Injunction
The court granted a permanent injunction restraining the defendants from:
- Using J&J’s trademarks, including the SURGICEL mark.
- Selling counterfeit products.
- Engaging in any activities that could mislead consumers into believing that the counterfeit products are genuine J&J products.
Implications
The court’s ruling highlights the importance of protecting intellectual property rights, particularly in the healthcare industry where counterfeit products can have serious consequences for patient safety.
Conclusion
The Delhi High Court’s decision sends a strong message that counterfeiting and trademark infringement will not be tolerated. The award of ₹3.34 crore in damages and the grant of a permanent injunction demonstrate the court’s commitment to protecting the rights of intellectual property owners and ensuring public safety.
Click here to read the original judgment//
