Delhi High Court Grants Interim Injunction Against Alchem International Pvt. Ltd. for Trademark Infringement

Alkem Laboratories Ltd. secures legal victory in trademark battle over "ALKEM" vs. "ALCHEM" in pharmaceutical sector.

In a significant ruling, the Delhi High Court has granted an interim injunction in favor of Alkem Laboratories Ltd., restraining Alchem International Pvt. Ltd. from using the trademark "ALCHEM" for similar pharmaceutical products. The judgment, delivered by Justice Amit Bansal, underscores the importance of protecting established trademarks and preventing consumer confusion in the pharmaceutical industry.

The dispute arose when Alkem Laboratories, a leading pharmaceutical company, sought to prevent Alchem International from using a mark that was phonetically and visually similar to its own registered trademark "ALKEM." The court found that the defendant's adoption of the "ALCHEM" mark was not bona fide and caused a likelihood of confusion among consumers due to the overlapping trade channels and identical product categories.

Alkem Laboratories, established in 1973, holds multiple trademark registrations for "ALKEM" and has built significant goodwill over decades. Despite Alchem International's claims of concurrent usage since 1982, the court ruled that mere delay in filing the suit did not amount to acquiescence. Alkem Laboratories had actively opposed Alchem's trademark applications and issued cease-and-desist notices as early as 2005, demonstrating its consistent efforts to protect its trademark rights.

Justice Bansal emphasized that in trademark cases, especially within the pharmaceutical sector, courts must adopt a stricter approach to prevent consumer confusion. The interim injunction aims to protect both the plaintiff's business interests and the public, who may be misled into purchasing products under the belief they originate from Alkem Laboratories.

The judgment allows Alchem International to continue using the "ALCHEM" mark solely for the manufacture and sale of APIs, provided they are not retailed in India, thus balancing the interests of both parties while maintaining market integrity.

The case highlights the critical role of trademark law in safeguarding brand identity and consumer trust, particularly in industries where product differentiation is vital for public health and safety.

Bottom Line:

Trademark law - Plaintiff's registered trademark 'ALKEM' restrained defendant's use of phonetically and visually similar mark 'ALCHEM' for similar pharmaceutical products, as it amounted to infringement and passing off.

Statutory provision(s): Trade Marks Act, 1999 Sections 29(5), 29(6), 33, Order XXXIX Rule 1 and 2, CPC, Order XXXIX Rule 4, CPC.

 Alkem Laboratories Ltd. v. Alchem International Pvt. Ltd., (Delhi) : Law Finder Doc Id # 2792286