Delhi High Court Grants Interim Injunction To Novartis Against 'NOVIETS' For Trademark Infringement

The Delhi High Court on 28 February granted an interim injunction in favour of the global healthcare company Novartis, restraining several Bihar-based entities, including Noviets Pharma and Noviets Veterinary Private Limited, from using the marks 'NOVIETS' and its associated logos.

Justice Tejas Karia observed that the contested marks were deceptively similar to the well-known 'NOVARTIS' trademark and logo, noting a likelihood of confusion among the public.

The Court emphasised that a stricter standard must be applied to trademark disputes in the pharmaceutical sector, noting that:

“Confusion between medicinal products may be life-threatening, not merely inconvenient, and could have dire effects on public health.”

Novartis AG and its Indian subsidiaries filed an application seeking an interim injunction against the Bihar-based entities claiming that they merely replaced a few letters: changing 'AR' to 'IE' and removing the letter 'I', to create a visual and phonetic imitation intended to mislead consumers.

It submitted that the name used by the defendants was phonetically and visually similar to the mark 'NOVIETS' for identical pharmaceutical products. This was a dishonest attempt to misappropriate its established goodwill and reputation.

The healthcare major further told the Court that such close similarity in the medicinal sector creates a high likelihood of confusion among consumers, which could result in irreparable injury to its brand and pose a life-threatening risk to public health due to potential medication errors.

It also submitted that it has continuously used the 'NOVARTIS' mark since 1996 and highlighted substantial annual sales, reaching over Rs. 367 crore in the 2022-23 financial year.

In its defence, the Noviets group of companies The defendants maintained that they are independent, small-scale enterprises operating in localized offline markets in Begusarai and Patna, Bihar, with no commercial solicitation in Delhi. They contended that the prefix 'NOV' is a generic expression in the pharmaceutical industry, derived from the word "nova" meaning 'new,' and argued that Novartis cannot claim an exclusive monopoly over it.

On the merits of the trademark dispute, the Court held that the case satisfied the triple identity test, noting that (i) the marks were deceptively similar, (ii) the products were identical pharmaceutical goods, and (iii) the trade channels were the same.

The Court observed that an average consumer with imperfect recollection would be unable to distinguish between 'NOVARTIS' and 'NOVIETS' given their substantial phonetic and visual similarity.

The Court also rejected the argument that the prefix 'NOV' was common to the trade, pointing out that since the Noviets group had itself sought registration for the mark, it could not simultaneously claim that the prefix was generic.

Addressing the jurisdictional challenge, the Court noted that the companies' IndiaMart listing specifically displayed a place of business in Delhi and was accessible to local consumers. At the preliminary stage, the Court held that the fact that the entities purposefully availed themselves of a digital forum targeting Delhi was sufficient to permit the suit to proceed.

Justice Karia remarked that whether the website was truly “passive” or facilitated commercial transactions is a mixed question of fact and law requiring detailed examination during a full trial.

Accordingly, the Court issued an injunction restraining the Noviets group and its CEO, Ranjeet Kumar, from using 'NOVIETS' or any identical mark for their pharmaceutical and veterinary business and disposed of the application.