Delhi High Court Grants Interim Injunction in Trademark Infringement Case: AZIWOK vs. AZIWAKE

In a significant ruling on trademark infringement, the Delhi High Court has granted an interim injunction in favor of Dr. Reddys Laboratories Limited, against Smart Laboratories Pvt Ltd. The Court’s decision, pronounced on November 16, 2023, in case number CS(COMM) 744/2023, addresses the contentious issue of phonetic similarity between two pharmaceutical products: ‘AZIWOK’ and ‘AZIWAKE’.

Hon’ble Mr. Justice C. Hari Shankar, presiding over the case, underscored the importance of distinctiveness in pharmaceutical trademarks due to potential consumer confusion. “The existence, or otherwise, of confusion is required to be assessed at the ‘initial interest’ stage,” Justice Shankar observed, highlighting the risks associated with confusion in medicinal products.

The plaintiff, Dr. Reddys Laboratories Limited, holds the registered trademark ‘AZIWOK’, used for azithromycin pharmaceutical products. The defendant, Smart Laboratories Pvt Ltd, was alleged to have infringed upon this trademark with their product named ‘AZIWAKE’. The Court’s analysis leaned heavily on the phonetic similarity of the two marks, considering the potential for confusion among consumers, especially given the critical nature of pharmaceutical products.

Applying the ‘Pianotist’ test, Justice Shankar noted, “To the ear of the consumer of average intelligence and imperfect recollection, it is clear that the words ‘AZIWOK’ and ‘AZIWAKE’ are phonetically deceptively similar.” This observation formed a crucial part of the rationale for granting the injunction.

In balancing the equities, the Court found that the balance of convenience and irreparable harm favored the plaintiff. “Continuing infringement, by the defendant, of the plaintiff’s mark, is likely to dilute its brand value,” Justice Shankar stated, highlighting the inadequate nature of monetary compensation in such cases.

However, the Court allowed the defendant to sell their existing stock of ‘AZIWAKE’ already in the market, subject to specific compliance requirements.

Date of Decision: 16 November 2023

DR REDDYS LABORATORIES LIMITED VS  SMART LABORATORIES PVT LTD