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Sudarshan Chemical Industries, a Pune-based producer of performance colorants and effect pigments, has won an appeal in the European Courts against Clariant.
The Court of Appeal, London, has dismissed an appeal raised by Germany-based Clariant Produkte GmbH and awarded costs and damages for wrongful threats to Sudarshan.
The appeal pertained to an earlier judgment of the High Court of Justice in favour of Sudarshan in which the court held that its product, Sudafast Yellow 132, did not infringe Clariant’s patent. It had ordered an inquiry into damages and awarded the cost of the action to Sudarshan.
Clariant had issued threats to Sudarshan’s customers in November 2009, and refused to agree to an amicable settlement following which the company stopped promoting and selling Sudafast in the overseas market.
Rajesh Rathi, head of Sudarshan’s pigment division, estimated the loss in turnover at $4.8 million annually based on projected sales of Sudafast in the countries protected by the second patents. The losses are wider as Sudarshan had also invested in a new production line at its Roha facility.
The legal battle was conducted by Anderson Strathern, Scotland, on behalf of Sudarshan.
“We are extremely happy that we were given a fair trial in the court of law and this victory sets an important precedent for Indian manufacturers. It may open up trade opportunities and give them the courage to challenge patents in international courts,” Rathi said.
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