Wednesday, June 22, 2011

PUNITIVE DAMAGES FOR USING DECEPTIVE AND PHONETICAL SIMILAR TRADE MARK

Through a landmark judgement , the Delhi High Court held in a trade mark infringement verdict  that will help to hamper companies from employing deceptively and phonetically  analogues trade mark, the Delhi HC recently granted damages to the tune of Rs.1 lakh as punitive damages to a subsidiary of Pfizer.

For the first time in trade mark litigation history that punitive damages have been granted by the Court against Omax Healthcare though no actual damages have been corroborated or established.

The Delhi High court also granted an injunction restraining Omax Healthcare from manufacturing, marketing and distributing cough syrup under the mark 'Orex' or any mark deceptively similar to that of the Pfizer's Corex.


Subsidiary of Omex had initiated a legal suit for injunction, production of accounts and damages against the Omax Healthcare for branding and marketing their cough syrup under the mark 'Orex' being deceptively and  phonetically analogues to their registered mark being, 'Corex'.

As per trade mark law, any one employing  a mark, either
deceptively,visually, phonetically and  analogues to that of a registered trademark thereby generating chaos in the minds of the customers, would end in damages for passing off and infringement


Deceitful usage of misleading mark tantamounts to fake misrepresentation to the general public. No one  is permitted to employ trade marks of opponents with an aim of arrogating their goodwill and standing in the market. Either enrichment upon the brand value created by others or colorable usage of marks is not allowable under the Act.

In spite of legal requirements, cough syrup being one of the most frequently sold syrups and is commonly available without prescription in the market. 


People staying in villages and possessing average intelligence might not be vigilant enough to ensure small details and products sold with phonetic and visual resemblance may cause perplexity among customers. Such defective usage could adversely affect the reputation of the registered trademark owner as quality of all cough syrups is not similar.

On the basis of the trademark jurisprudence in India and on the above said reasoning and, the Delhi HC granted injunction against the manufacture, sale and distribution of cough syrup of the defendants under the name of 'Orex' or any other name/mark which is deceptively and phonetically analogous to the registered mark 'Corex'.


Industry Sources observed that, "This move would generate preclusion in the minds of users resorting to infringing or fraudulent usage registered marks of well-known manufacturers and averting puzzlement in the minds of customers."

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