In an unprecedented order, the Bombay High Court has imposed that the infringing party to a suit, i.e., Galpha Laboratories Ltd., pay a sum of Rs. 1.5 Crores as cost.

The Court came to this conclusion after noting that Galpha Laboratories was a habitual offender and they had had multiple suits of infringement against them. Added is the fact that in 2017, the Central Drugs Standard Control Organization (CDSCO) had published a list of drugs which were “Not of Standard Quality/Spurious/Adulterated/Misbranded”. Five products on that list belonged to Galpha Labs. In this light, the Court observed that Galpha had no respect for the law and was a repeat offender.

The court noted that the present case was a perfect example wherein pharmaceutical companies had their judgment clouded by profits and turnovers which resulted in acts that were detrimental to the public health/good.

Thus, when the Court imposed the heavy damages, it noted that had Galpha Labs been penalised heavily in its earlier acts of infringement, it would have acted as a dissuasive measure for future acts.

This order of the Court highlights the seriousness of the Judiciary with respect to the protection of Intellectual Property, and the gradual development from penalty to punitive justice.

The purpose of punitive remedies/justice is that the offender should pay for his crimes in a manner that is proportionate to the offence.

Galpha Laboratories had amassed huge profits through repeated infringement of popular brands of medical goods. Despite various courts orders, they were audacious enough to continue with the acts because the fines/penalties imposed by the courts were a mere slap on the wrist as compared to the “illegal” profits they were making by duping the general public.

The present judgment hereby comes with a hope that pharmaceutical companies would think twice about branding spurious goods under infringing trademarks. The damages imposed upon the infringer is an actual deterrent factor not just for the infringer in the present case but for other companies engaging in such acts.

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