The Delhi High Court has issued an interim order restraining Dr. Reddy’s Laboratories from manufacturing and selling its VENUSIA sunscreens with a label that includes the word “SUN”. The court’s decision comes in response to a lawsuit filed by Glenmark Pharmaceuticals, which claims that Dr. Reddy’s is infringing on its trademark rights.
Glenmark Pharmaceuticals had launched its own sunscreen product, SUNSTAR, in 2018, and had obtained a trademark registration for the mark “SUN” in relation to sunscreen products. The company claims that Dr. Reddy’s use of the word “SUN” on its VENUSIA sunscreens is likely to cause confusion among consumers and dilute the distinctiveness of Glenmark’s trademark.
The Delhi High Court has agreed with Glenmark’s arguments, observing that Dr. Reddy’s use of the word “SUN” on its products is likely to cause confusion among consumers, who may mistakenly believe that the VENUSIA sunscreens are connected to Glenmark’s SUNSTAR product. The court has therefore restrained Dr. Reddy’s from using the word “SUN” on its VENUSIA sunscreens, pending the outcome of the lawsuit.
The court’s order is a significant setback for Dr. Reddy’s, which had launched its VENUSIA sunscreens with the SUN label in an attempt to capitalize on the popularity of sunscreens in the Indian market. The company will now have to rebrand its products and remove the SUN label, which could result in significant losses and damage to its reputation.
The lawsuit highlights the importance of trademark protection in the pharmaceutical industry, where companies invest heavily in building their brands and trademarks. The Delhi High Court’s decision demonstrates that courts will take a strict view of trademark infringement, particularly in cases where there is a likelihood of confusion among consumers.
The case will now proceed to trial, where Glenmark will have to prove that Dr. Reddy’s use of the word “SUN” on its VENUSIA sunscreens constitutes trademark infringement. If the court ultimately rules in favor of Glenmark, Dr. Reddy’s could face significant damages and penalties for its alleged infringement. The case is being closely watched by the pharmaceutical industry, which is keen to see how the courts will interpret trademark laws in cases of alleged infringement.