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As the Government seeks to censure social networking sites, drug-maker Cipla came up against perils of the Internet, but of a different kind.
Cipla has settled a trademark infringement case with German drug major Bayer Healthcare after it found Cipla's veterinary products finding their way into the United States market, through Web site channels.
“The products were not for sale in the US, and as a company we do not sell these products in the US,” a Cipla official familiar with the development told Business Line .
Pet products
Bayer said the settlement was with Cipla and Vanuatu-based Archipelago Suppliers, an operator of several Web sites. “Both companies have entered into settlements and agreed to immediately stop selling products that infringe Bayer's Advantage and Advantix trademarks and disgorge profits from such sales,” Bayer said.
Bayer's pet products include flea preventatives Advantage II and K9 Advantix II. Cipla has also paid $100,000 to reimburse Bayer for attorneys' fees and agreed to recall any product remaining in the sales pipeline, Bayer said.
Cipla decided to settle the case with Bayer, as litigation costs are high in the US, the Cipla official said. Incidentally, the two companies have a history of patent-related litigation in India.
Injunction
“Bayer became aware of Cipla's manufacture of an infringing product, DA Double Advantage, and of sales by various Web sites to the US consumers, in violation of Bayer's Advantage trademark rights. The company sought a preliminary injunction to quickly block any further illegal sales into the country,” Bayer said.
As part of the settlement, “Cipla would discontinue all use of the DA Double Advantage trademark (in the US and on a global basis). Cipla will also stop use of the trademark Advance for a companion animal product; refrain from manufacturing any product with the same formula as Bayer's patented Advantix and K9 Advantix II (US) products during the remaining term of those patents; and disgorge its total profits from the sale of DA Double Advantage, in excess of $100,000,” Bayer said.
Archipelago Suppliers
A similar outcome was formalised with Archipelago Suppliers, who agreed to a consent decree. Under the Court's order, Archipelago Suppliers is prohibited from selling DA Double Advantage or any product with the same formulation as DA Double Advantage.
The Consent Decree also prohibits Archipelago Suppliers from selling Advantix into the US. The case was filed in the US District Court of the Southern District of New York on September 12, Bayer said.
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