Bombay High Court Grants Injunction in Favor of Plaintiff in Trademark Infringement Suit Over STIMULIV vs STIMULET. Marks Held Deceptively Similar Despite Differences in Pharmaceutical Formulation and Therapeutic Use.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The dispute involves two pharmaceutical companies: Franco Indian Pharmaceuticals Pvt Ltd (Plaintiff) and Corona Remedies Pvt Ltd (Defendant). The Plaintiff markets an Ayurvedic preparation under the trademark STIMULIV, sold in syrup and tablet form, used as a health supplement. The Defendant markets an allopathic formulation under the trademark STIMULET, used specifically for breast cancer disorders and infertility. The Plaintiff filed a suit for trademark infringement and passing off in November 2020, seeking an interim injunction restraining the Defendant from using the mark STIMULET. The Defendant filed an application for rejection of the plaint under Order VII Rule 11 CPC. The court compared the two marks and found them to be structurally, phonetically, and visually similar, with the common prefix 'STIMU' being the dominant feature. The court held that the addition of the suffix 'LET' does not sufficiently distinguish the marks, and there is a likelihood of confusion among consumers, especially in the pharmaceutical context. The court rejected the Defendant's arguments that the products are different (Ayurvedic vs allopathic) and that the marks are not deceptively similar. The court also dismissed the Defendant's application for rejection of the plaint, holding that the plaint discloses a cause of action and the issues raised are triable. The court granted the interim injunction in favor of the Plaintiff, restraining the Defendant from using the mark STIMULET or any other deceptively similar mark.

Headnote

A) Trade Marks - Infringement - Deceptive Similarity - Section 29(2)(b) of the Trade Marks Act, 1999 - The court compared the marks STIMULIV and STIMULET and found them to be structurally, phonetically, and visually similar, with the common prefix 'STIMU' being the dominant feature. The court held that the addition of the suffix 'LET' does not sufficiently distinguish the marks, and there is a likelihood of confusion among consumers, especially in the pharmaceutical context. (Paras 6-14)

B) Trade Marks - Passing Off - Deceptive Similarity - Common Law - The court applied the test of likelihood of confusion and held that the similarity between the marks STIMULIV and STIMULET is likely to cause confusion or deception among the public, leading to passing off. The court rejected the argument that the products are different (Ayurvedic vs allopathic) as irrelevant for the purpose of passing off. (Paras 15-20)

C) Civil Procedure - Rejection of Plaint - Order VII Rule 11 CPC - The court dismissed the Defendant's application for rejection of the plaint, holding that the plaint discloses a cause of action and the issues raised are triable. The court noted that the application was not maintainable as it sought rejection on merits which is not permissible under Order VII Rule 11. (Paras 21-25)

D) Trade Marks - Honest Concurrent Use - Section 12 of the Trade Marks Act, 1999 - The court rejected the Defendant's defense of honest concurrent use, finding that the Defendant's adoption of the mark STIMULET was not honest given the prior use and registration of the Plaintiff's mark STIMULIV. The court held that the Defendant failed to provide sufficient evidence of honest concurrent use. (Paras 26-30)

E) Trade Marks - Delay and Acquiescence - The court rejected the Defendant's argument of delay and acquiescence, holding that the Plaintiff acted promptly in filing the suit and that mere delay without prejudice does not bar an injunction. The court found no evidence of acquiescence by the Plaintiff. (Paras 31-35)

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Issue of Consideration

Whether the mark STIMULET of the Defendant is deceptively similar to the Plaintiff's mark STIMULIV, and whether the Plaintiff is entitled to an interim injunction restraining the Defendant from using the mark STIMULET.

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Final Decision

The court allowed Franco Indian's Interim Application (L) No. 142 of 2021, granting an interim injunction restraining Corona Remedies from using the mark STIMULET or any other deceptively similar mark. The court dismissed Corona Remedies' Interim Application No. 374 of 2021 for rejection of the plaint.

Law Points

  • Trademark infringement
  • passing off
  • deceptive similarity
  • pharmaceutical trademarks
  • Ayurvedic vs allopathic
  • likelihood of confusion
  • phonetic similarity
  • structural similarity
  • prefix dominance
  • suffix variation
  • honest concurrent use
  • delay and acquiescence
  • rejection of plaint under Order VII Rule 11 CPC
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Case Details

2021 LawText (BOM) (03) 99

Interim Application (L) No. 142 of 2021 in Commercial IP Suit (L) No. 136 of 2021

2021-03-01

G.S. Patel, J

Mr Amit Jamsandekar, with Mr Kiran Mehta, Mr Vighnesh Kamat & Ms Archita Gharat, i/b Kiran J Mehta, for the Plaintiff. Mr Vikas Khera, with Mr Amit Kukreja & Mr Ashish Rohra, for the Defendant.

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Nature of Litigation

Trademark infringement and passing off action between two pharmaceutical companies.

Remedy Sought

Franco Indian sought an interim injunction restraining Corona Remedies from using the mark STIMULET / STIMU-LET, alleging infringement of its registered trademark STIMULIV and passing off.

Filing Reason

Franco Indian alleged that Corona Remedies' mark STIMULET is deceptively similar to its mark STIMULIV, causing confusion and damage to its business.

Issues

Whether the mark STIMULET is deceptively similar to the mark STIMULIV. Whether the Plaintiff is entitled to an interim injunction. Whether the Defendant's application for rejection of the plaint under Order VII Rule 11 CPC should be allowed.

Submissions/Arguments

Plaintiff argued that the marks STIMULIV and STIMULET are structurally, phonetically, and visually similar, with the common prefix 'STIMU' being dominant, leading to likelihood of confusion. Defendant argued that the marks are dissimilar due to different suffixes, the products are different (Ayurvedic vs allopathic), and there is no likelihood of confusion. Also raised defenses of honest concurrent use, delay, and acquiescence, and sought rejection of the plaint.

Ratio Decidendi

The court held that the marks STIMULIV and STIMULET are deceptively similar, as the common prefix 'STIMU' is the dominant and memorable part, and the suffix 'LET' does not sufficiently distinguish the marks. The court applied the test of likelihood of confusion, considering the nature of pharmaceutical products where even slight similarity can cause confusion. The court also held that the defenses of honest concurrent use, delay, and acquiescence were not made out, and the plaint disclosed a cause of action, thus rejecting the application for rejection of plaint.

Judgment Excerpts

The contest in this trade mark infringement and passing off action is between Franco Indian’s mark STIMULIV, an Ayurvedic preparation sold in syrup and tablet form, and Corona Remedies’ STIMULET, an allopathic formulation used only in the treatment for breast cancer disorders and infertility. Having carefully considered the rival submissions, I am not persuaded that the various defences raised by Corona Remedies have enough substance to defeat the injunction application by Franco Indian. I begin this judgment by turning directly to the question of similarity between the two marks. It seems to me that this is a determinative, and even dispositive, threshold consideration.

Procedural History

The suit was filed in November 2020. Affidavits in Reply, Rejoinder, and further Affidavits were filed. The court heard the parties on the interim application and the application for rejection of plaint, and delivered judgment on 1st March 2021.

Acts & Sections

  • Trade Marks Act, 1999: Section 29(2)(b), Section 12
  • Code of Civil Procedure, 1908 (CPC): Order VII Rule 11, Section 151
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High Court Bombay High Court Grants Injunction in Favor of Plaintiff in Trademark Infringement Suit Over STIMULIV vs STIMULET. Marks Held Deceptively Similar Despite Differences in Pharmaceutical Formulation and Therapeutic Use.
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