Bombay High Court Grants Injunction Against Trade Mark Infringement and Passing Off in Pharmaceutical Product 'ONCO BCG' - Defendant's Mark 'BCG ONCO' Held Deceptively Similar Despite Common Descriptive Element 'BCG'.

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

The plaintiff, Serum Institute of India Limited, a pharmaceutical company, filed a suit for trade mark infringement and passing off against Green Signal Bio Pharma Pvt. Ltd. and another, alleging that the defendants' use of the mark 'BCG ONCO' for medicinal preparations infringed its registered trade mark 'ONCO BCG' (Registration No. 1481471 in Class 5). The plaintiff had conceived the mark in 2006, obtained registration on 24 August 2006, and commenced use in 2007 after obtaining necessary drug manufacturing permissions. The plaintiff's product, containing the generic drug Bacillus Calmette Guerin (BCG), achieved sales of Rs. 5.80 lakhs in 2006-2007, rising to Rs. 176.44 lakhs in 2009-2010, with promotional expenditure of Rs. 7,08,575. The defendants, also in the pharmaceutical business, adopted the mark 'BCG ONCO' for similar goods. The plaintiff sought an interim injunction restraining infringement and passing off. The defendants argued that 'BCG' is a descriptive generic term and that the plaintiff's registration disclaimed exclusive use of 'BCG', so the transposition of words did not cause confusion. The court analyzed the marks and found that despite the disclaimer, the composite mark 'ONCO BCG' is distinctive. The court held that mere reversal of words does not avoid deceptive similarity, especially in the pharmaceutical field where confusion could have serious consequences. The court noted that the marks are visually, phonetically, and structurally similar, and the defendant's adoption appeared to be with knowledge of the plaintiff's mark. The court concluded that the plaintiff had made out a strong prima facie case for infringement and passing off, and the balance of convenience favored granting an injunction. Accordingly, the court allowed the Notice of Motion and restrained the defendants from using the mark 'BCG ONCO' or any deceptively similar mark pending the suit.

Headnote

A) Trade Marks - Infringement - Deceptive Similarity - Sections 28, 29 Trade Marks Act, 1999 - Plaintiff registered mark 'ONCO BCG' for medicinal preparations containing BCG - Defendant used 'BCG ONCO' for similar goods - Court held that mere transposition of words does not avoid infringement; marks are deceptively similar and likely to cause confusion among medical professionals and patients - Held that plaintiff is entitled to interim injunction restraining defendant from using 'BCG ONCO' or any deceptively similar mark (Paras 1-10).

B) Trade Marks - Passing Off - Common Law Remedy - Plaintiff established prior use and reputation in 'ONCO BCG' since 2007 with substantial sales and promotional expenditure - Defendant's adoption of 'BCG ONCO' was likely to mislead purchasers into believing defendant's goods originate from plaintiff - Held that plaintiff made out a strong prima facie case for passing off (Paras 4-10).

C) Trade Marks - Descriptive Mark - Exclusive Use - Section 17 Trade Marks Act, 1999 - Plaintiff's registration disclaimed exclusive use of 'BCG' as it is a generic drug name - However, the composite mark 'ONCO BCG' is distinctive and entitled to protection - Defendant cannot appropriate the whole mark by merely reversing the order - Held that the disclaimer does not permit defendant to use a mark that is deceptively similar as a whole (Paras 3, 10).

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Issue of Consideration

Whether the defendant's use of the mark 'BCG ONCO' for pharmaceutical preparations infringes the plaintiff's registered trade mark 'ONCO BCG' and amounts to passing off, despite the common descriptive element 'BCG'.

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Final Decision

The Notice of Motion is allowed. The defendants are restrained by an order of injunction from infringing the plaintiff's registered trade mark 'ONCO BCG' by using the mark 'BCG ONCO' or any other deceptively similar mark, and from passing off their goods as those of the plaintiff, pending the disposal of the suit.

Law Points

  • Trade mark infringement
  • passing off
  • deceptive similarity
  • pharmaceutical products
  • common descriptive element
  • likelihood of confusion
  • interim injunction
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Case Details

2011 LawText (BOM) (06) 78

Notice of Motion No.2696 of 2010 in Suit No.2564 of 2010

2011-06-14

S.J. Kathawalla, J.

Mr. Himanshu Kane a/w Mr. Hiren Kamod, Mr. Ashutosh Kane for plaintiff; Mr. S. Gowthaman a/w Mr. Rajiv Singh i/by Chitnis & Co. for defendant no.1

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Nature of Litigation

Civil suit for trade mark infringement and passing off

Remedy Sought

Interim injunction restraining defendants from using the mark 'BCG ONCO' or any deceptively similar mark

Filing Reason

Defendants adopted a mark deceptively similar to plaintiff's registered trade mark 'ONCO BCG'

Previous Decisions

None

Issues

Whether the defendant's mark 'BCG ONCO' infringes the plaintiff's registered trade mark 'ONCO BCG' under the Trade Marks Act, 1999? Whether the defendant's use of 'BCG ONCO' amounts to passing off? Whether the plaintiff is entitled to an interim injunction?

Submissions/Arguments

Plaintiff argued that 'ONCO BCG' is a registered trade mark and the defendant's mark 'BCG ONCO' is deceptively similar, causing confusion among consumers and medical professionals. Defendant argued that 'BCG' is a generic descriptive term and the plaintiff's registration disclaims exclusive use of 'BCG', so the transposition of words does not create infringement.

Ratio Decidendi

In a trade mark infringement action, mere transposition of words in a composite mark does not avoid a finding of deceptive similarity, especially in the pharmaceutical field where confusion can have serious health consequences. The disclaimer of exclusive use of a descriptive element does not permit a third party to adopt a mark that is deceptively similar as a whole.

Judgment Excerpts

By this Notice of Motion the plaintiff has prayed for an order and injunction restraining the defendants from infringing the plaintiff's trade mark 'ONCO BCG' bearing registration number 1481471 in class 05... The registered trade mark is valid and subsisting. However, the registration of the said trade mark does not give right to the plaintiff to the exclusive use of the letters 'BCG'.

Procedural History

The plaintiff filed Suit No.2564 of 2010 along with Notice of Motion No.2696 of 2010 seeking interim relief. The motion was heard and reserved on 3rd March 2011, and judgment pronounced on 14th June 2011.

Acts & Sections

  • Trade Marks Act, 1999: 28, 29, 17
  • Companies Act, 1956:
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