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Bombay HC orders copycat pharma firm to pay Rs 1.5 cr for Kerala CM's relief fund

Galpha Laboratories on Friday handed over a cheque equivalent to the fine imposed on it, for infringing on trademark of Glenmark Pharma under the Intellectual Property Rights Act

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Galpha Labs paid the fine amount to Kerala CM’s Distress Relief Fund
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The Bombay High Court has ordered a pharmaceutical company to pay Rs 1.5 crore to the Kerala Chief Minister's Distress Relief Fund after holding it guilty of copying a product of a reputed brand, in a sharp departure from its usual lenient stand in such cases.

Galpha Laboratories on Friday handed over a cheque equivalent to the fine imposed on it, for infringing on trademark of Glenmark Pharmaceuticals Ltd. under the Intellectual Property Rights Act.

Galpha ran into trouble after Glenmark dragged it to the HC saying the former's product "CLODID" was a copycat of its blockbuster cream Candid-B. Justice S J Kathawala has directed Galpha to immediately withdraw all products bearing the impugned mark and its variants from the market. The HC also ordered Galpha to conduct its business by abiding strictly by the rules and regulations of the Food and Drug Administration. Advocate Hiren Kamod, who represented Glenmark, had argued that Galpha had copied his client's Candid-B "to the last millimeter". He also told the court that the defendants were habitual offenders.

Citing a Delhi HC judgment and newspaper reports, Kamod contended that Galpha had earlier infringed upon trademarks of reputed pharma companies and was found to be manufacturing and selling substandard and spurious drugs.

After going through the evidence, the HC said it general takes a lenient view in cases of infringement of trademark.

However, in the present case, it said "This is a case where the conduct of the Defendant No.2 [Galpha Laboratories] is not only dishonest but also audacious and such which displays no regards to the authority/rule of law."

Stressing that drugs are not sweets, the HC said, "Pharmaceutical companies which provide medicines for health of the consumers have a special duty of care towards them. These companies, in fact, have a greater responsibility towards the general public. However, nowadays, the corporate and financial goals of such companies cloud the decision of its executives whose decisions are incentivized by profits, more often than not, at the cost of public health. This case is a perfect example of just that."

As many as 483 people have lost lives in Kerala since the onset of the monsoon on May 28 and 14 were still missing.

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