To safeguard consumers, it is necessary to have clear, simplified and consistent parameters for the
comparison of marks, while avoiding the stifling of competition
Branding in the pharmaceutical industry is a difficult issue. Restrictions on advertising and promotion are an obvious impediment to the building of brand recognition. Purchase decisions are influenced not only by consumers, but also by prescribing doctors or pharmacists. Furthermore, trademarks and brand names are often chosen to reflect a drugs principal component or the ailment it is intended to cure. While the general principle for determining similarity between marks is well established marks should be compared as a whole. It is not right to take a portion of a word and say that because that portion of the word differs from the corresponding portion of the other word, there is insufficient similarity to cause confusion court decisions in relation to pharmaceutical marks are often inconsistent, influenced by factors such as the use of handwritten prescriptions and medical abbreviations, and whether the drug is a Schedule H drug (which can be sold only on the written prescription of a medical practitioner) or an over-the-counter drug. As early as 1963, the Supreme Court took the view that the question of similarity has to be approached from the point of view of a man of average intelligence and imperfect recollection. In Amritdhara Pharmacy v Satya De it concluded that to such a man the overall structural and phonetic similarity of the two names Amritdhara and Lakshmandhara is in our opinion, likely to cause confusion. The case concerned the respondents application to register the mark LAKSHMANDHARA and the appellants opposition based on its trade name AMRITDHARA, which had been previously registered in respect of a similar medicinal preparation. However, the Supreme Court subsequently took a different view in F Hoffmann-La Roche & Co Ltd v Geoffrey Manners & Co Pvt Ltd, finding the marks DROPOVIT and PROTOVIT, both used on abbreviation of the generic term meropenem and therefore considered in the public domain. Consequently, AstraZeneca was held to not be entitled to claim exclusive rights to use of the term mero, as it was descriptive of the drug. The Division Bench further held that because mero was descriptive and in the public domain, customers would tend to ignore it and pay more attention to the uncommon features, namely mer and nem, which were clearly dissimilar. The court therefore refused to restrain Orchid Chemicals from using the mark MEROMER. In the second case Schering Corporation v Alkem Laboratories Ltd the marks in dispute were TEMODAL and TEMODAR (Schering), TEMOKEM (Alkem) and TEMOGET (Getwell Sciences India Pvt Ltd). All four marks derived from the active ingredient temozolomide. The two-judge bench agreed with the rationale of the AstraZeneca decision and dismissed Scherings argument that the term tem or temo had acquired secondary meaning as a result of its registration of the TEMODAL and TEMODAR marks in over 100 countries and its longstanding and uninterrupted use of the marks. The court took the view that merely because the molecule TEMOZOLOMIDE may have been patented and commercially pioneered by the Appellants, they do not become entitled, on the statutorily protected monopoly disappearing, to prevent others from calling, what the molecule is, by its gener ic name, and such other names which are publicly known to describe and denote it. The court held that TEMOKEM and TEMOGET could not be said to be either phoneticall y, visually or in any other manner deceptively similar to the appellants TEMODAL and TEMODAR trademarks. One of the defences often put forth in vitamin preparations, so dissimilar that there was no reasonable probability of confusion, whether from a visual or phonetic point of view. The terminal syllable -vit in the two marks was both descriptive and common to the trade, but the letters D and P in DROPO and the corresponding P and T in PROTO, which could not possibly be confused in pronunciation, made the words sufficiently dissimilar. Despite this decision, the overall trend of various high courts in India from 2009 to 2011 has been to apply the principle that marks should be compared as a whole while ascertaining whether or not they are deceptively similar: BOLAREN was held to be similar to DOLAREN (Gujarat High Court, 2009). NEUROCONTIN was held to be similar to CONTIN (Delhi High Court, 2009). SCALIS was held to be similar to CIALIS (Delhi High Court, 2009). NIMAID was held to be similar to NIMSAID (Mumbai High Court, 2010). SOREX was held to be similar to COREX (Delhi High Court, 2011). BECNATE-N and BECNATE-C were held to be similar to BETNOVATE (Delhi High Court, 2011). When comparing marks, much debate has focused on whether those parts that derive from the ingredient name should be ignored. The issue has, to an extent, been settled by two Delhi High Court cases. In the first case AstraZeneca UK Ltd v Orchid Chemicals & Pharmaceuticals Ltd the marks in dispute were MERONEM (owned by AstraZeneca) and MEROMER (owned by Orchid), both derived from the active ingredient meropenem. The Division Bench of the Delhi High Court concluded that meropenem is a molecule used to treat bacterial infection, and the term mero is an Ranjan Narula Associates Protecting consumers and brand owners Co-published editorial 84 www.WorldTrademarkReview.com World Trademark ReviewOctober/November 2011 Companies connected with medical field keep abreast of latest developments in medicine and preparations worldwide. Medical literature is freely available in this country. Doctors, medical practitioners and persons connected with the medical field regularly attend medical conferences, symposiums, lectures etc. It must also be remembered that nowadays goods are widely advertised in newspapers, periodicals, magazines and other media which are available in the country. This results in a product acquiring a worldwide reputation. Thus, if a mark in respect of a drug is associated with the Respondents worldwide it would lead to an anomalous situation if an identical mark in respect of a similar drug is allowed to be sold in India. However, one note of caution must be expressed. Multinational corporations, who have no intention of coming to India or introducing their product in India should not be allowed to throttle an Indian Company by not permitting it to sell a product in India, if the Indian Company has genuinely adopted the mark and developed the product and is first in the market. Thus, the ultimate test should be who is first in the market. An issue often debated is the role of drug controllers in ensuring that conflicting drug names are not approved. Section 17B of the Drugs and Cosmetics Act provides that before granting approval for the manufacture of a new drug, the drug controller should be satisfied that the product name does not resemble that of a pre-existing drug and will cause no confusion and deception in the course of trade. However, in practice, the role of the Drugs Authority in reviewing and analysing proposed pharmaceutical trademarks is unclear. The records of the Drugs Authority and the Trademarks Office are not interlinked and there is no provision for consultation between the two authorities before a trademark is approved. The trademark system has been designed to protect consumers from confusion and brand owners from misuse of their intellectual property. Of course, the pharmaceutical industry does have particular features that create challenges for the balancing of these interests. In the case of pharmaceutical products, it is perhaps more important to safeguard consumer interest, as confusion between medicinal products can be life threatening. Here, as elsewhere, it is necessary to have clear, simplified and consistent parameters for the comparison of marks to ensure consumer protection without stifling competition. WTR pharmaceutical cases is that where the drug in question is a Schedule H drug (ie, to be sold only on the written prescription of a medical practitioner), this should be taken into account when determining similarity and resulting confusion. In Ciba Geigy Ltd v Sun Pharmaceutical Industries, when comparing the marks CLOFRANIL and ANAFRANIL, the court considered the weight to be given to the significance of drug being a Schedule H drug and held that: In my judgement, inclusion of a drug in Schedule H to the Drugs and Cosmetics Rules, 1945 and its availability only on the prescription by a doctor is indeed a fact which cannot be ignored by a Court of law. There is, therefore, really [the] remotest possibility of mistake or confusion. However, in subsequent decisions the courts have disagreed. In Ciba Geigy Ltd v Crosslands Research Laboratories Ltd, the court held as follows: in the mark relating to sale of medicinal preparations, the distributors have a vital role to play. The manufacturers depend on the wholesale distributors and the retail medical shops. There are hundreds and thousands of primary health centres all over India and medical representatives and they often go by the words of the medical shops in their locality. The doctors in the towns and the Metropolitan Cities are very busy and they depend upon the junior doctors for writing the prescription and we have come across cases where doctors give wrong prescriptions without knowing the exact composition of the medicines and the manufacturers of the medicines. The court further stated that: [It did] not for a moment state that the doctors do not know the difference between VOLTAREN and VOLTA-K. But when the life has become very busy, one is apt to commit an error and at the time of prescription one cannot expect a doctor, however eminent he might be, to know the exact manufacturer of a product. What happens is when a doctor gives a prescription, say Voltaren i.e. taken to the medical shop and the medical shop tells the patient that Volta-K is available in his shop and it is the same as Voltaren. The medical shop man also does not know the difference and he may unknowingly say Volta-K thinking that is the product of the Plaintiff Co. That is where the confusion would arise. Therefore, the argument that the scheduled drugs are sold only on prescription and, therefore, there is no scope for any confusion cannot at all be advanced. Recent rulings suggest that while a marks use on a Schedule H drug is one factor that should be taken into account in Country correspondent: India 85 www.WorldTrademarkReview.com October/November 2011 World Trademark Review Ranjan Narula Managing partner rnarula@indiaiprights.com Ranjan Narula Managing partner rnarula@indiaiprights.com Ranjan Narula is the managing partner of Ranjan Narula Associates, a specialist IP firm that he founded in 2004. He has 20 years of post-qualification experience in contentious and non-contentious intellectual property and has worked with the legal department of Burmah Castrol (now BP). He was also a partner with Rouse and headed its India practice for 10 years. He extensively advises IP holders on brand management issues and providesstrategic advice on IP clearance, exploitation, acquisition, protection and enforcement. assessing confusion, it is not decisive. With the growth of Indias pharmaceutical industry, the courts have taken steps to protect consumers from the confusion that can arise when a local company adopts an established international mark. It will be heartening for rights holders to know that the courts in India have taken the view that the adoption of such marks should be considered in a global context. The position was aptly summarised by the Supreme Court in Milment Oftho Industries v Allergan Inc in relation to the OCUFLOX mark: Whilst considering the possibility of likelihood of deception or confusion, in present times and particularly in the field of medicines, the Courts must also keep in mind the fact [that] nowadays the field of medicine is of an international character. The Court has to keep in mind the possibility that with the passage of time, some conflict may occur between the use of the mark by the Applicant in India and the user by the overseas company. The Court must ensure that public interest is in no way imperilled. Doctors, particularly eminent doctors, medical practitioners and persons or
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