The Delhi High Court on Tuesday ruled in favor of Johnson & Johnson (J&J) in a case involving the counterfeiting of its medical products, awarding the healthcare giant ₹3.34 crore in damages against the defendants. .Justice Amit Bansal, who passed the judgment, noted that counterfeit medical products not only amounted to trademark infringement but also posed grave public health risks. "The counterfeit medical products sold by the defendants pose a significant threat to public health. Counterfeiting of medical devices is not merely a case of trade mark infringement, it is a grave offence that endangers the lives of people. The defendants’ conduct demonstrates a deliberate effort to mislead the public, jeopardize the consumer safety and exploit consumer trust for financial gain," the judgment said. .Counterfeiting of medical devices is not merely a case of trade mark infringement, it is a grave offence that endangers lives.Delhi High Court.The Court added that the defendants had also caused irreparable harm to J&J's good will and reputation. "The defendants’ deliberate and fraudulent acts have also caused irreparable harm to the plaintiff’s goodwill and market reputation. By selling substandard counterfeit products under the plaintiff’s trade marks, the defendants have misled consumers and associated the plaintiff’s name with the counterfeit goods," the Court said. .The lawsuit, filed in 2019, alleged that the defendants were involved in the production, distribution, and sale of counterfeit surgical products under J&J’s registered trademarks, including SURGICEL, ETHICON, and LIGACLIP. These products, used in critical surgical procedures, were found to be non-sterile, contaminated, and inadequately oxidized, posing significant risks to patient safety.The case came to light after a neurosurgeon at the University of Kentucky Medical Center in the United States reported irregularities in SURGICEL products during a brain surgery. Investigations revealed that the counterfeit products had entered the supply chain through a complex network of distributors, including entities in the UAE and the United States, ultimately tracing back to M/s Medserve in New Delhi..Justice Amit Bansal noted that the defendants had engaged in a deliberate, conscious, and wilful infringement of J&J’s intellectual property rights. The Court found that the defendants had manufactured and sold counterfeit medical devices, repackaged expired products with falsified expiration dates, and distributed them internationally, earning substantial profits in the process.Evidence presented during the trial included seized documents, electronic communications, and testimony from J&J’s witnesses. Local Commissioners appointed by the Court recovered counterfeit products, invoices, and financial records from the defendants’ premises, further substantiating J&J's claims."The evidence presented before the Court, including invoices, bank receipts, and chat extracts, establishes without a doubt that defendant no. 1 has received substantial financial gains in the course of carrying out the infringing and counterfeiting activities," the Court said. .The defendants’ deliberate and fraudulent acts have also caused irreparable harm to the plaintiff’s goodwill and market reputation, the Court held. By selling substandard counterfeit products under J&J's trade marks, the defendants have misled consumers and associated the plaintiff’s name with the counterfeit goods, it added. .The Court awarded ₹2.34 crores in compensatory damages, calculated as 25 per cent of the estimated ₹9.39 crore in sales generated by the defendants from counterfeit products. Additionally, ₹1 crore was imposed as exemplary damages on the defendants to deter future infringements and to punish the defendants for their "dishonest and fraudulent" activities."I am convinced with the evidence presented and submissions made by the counsel for plaintiff and conclude that a conservative profit margin of 25% can be assumed for awarding actual damages in favour of the plaintiff and against the defendants in the present case," the judgment said. .The Court also granted a permanent injunction restraining the defendants from using J&J’s trademarks, selling counterfeit products, or engaging in any activities that could mislead consumers into believing they were purchasing genuine J&J products..J&J was represented by Advocates Nancy Roy, Raghav Malik, Prakirti Varshney and Prashan from law from Lall & Sethi. .[Read Judgment]
