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High Court of Ireland Decisions |
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You are here: BAILII >> Databases >> High Court of Ireland Decisions >> Smithkline Beecham plc v. Antigen Pharmaceuticals Ltd. [1999] IEHC 144; [1999] 2 ILRM 190 (25th March, 1999) URL: http://www.bailii.org/ie/cases/IEHC/1999/144.html Cite as: [1999] IEHC 144, [1999] 2 ILRM 190 |
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1. This
is an application for interlocutory injunctions restraining the Defendant from
passing off its goods as goods of the Plaintiffs and also from infringing the
Plaintiffs trade marks.
3. In
October 1998 the Defendant commenced to market a soluble analgesic in which the
active ingredient is ibuprofen, and I am told that it is the first time that
ibuprofen has become available in a soluble form. It is marketed under the
name "Solfen" in a box of approximately the same size as that used for the
Plaintiffs' efflervescent product, although the design on the front of the box
runs horizontally rather than vertically as in the case of the Plaintiff's
product. Over half of the front of the Defendant's box has a background of
brick red with the word "Solfen" in white. The remainder of the box is an
impression of a head which is largely dark blue, and contains a zigzag device
across it in yellow which, where it leaves the head, becomes a yellow straight
line above the word "Solfen".
4. The
Plaintiff's are registered owners of a number of trade marks in class 5 for
pharmaceutical preparations and substances, three of which appear to me to be
relevant. These are:
5. The
trade mark "Solpafen", although registered since 1993, has not in fact been
used by the Plaintiffs, but it does still remain on the register.
6. The
Defendant has applied to register the word "Solfen" which word has been
accepted by the Comptroller for registration, but the registration is being
opposed by the Plaintiffs. It should be noted, however, that the word "Solfen"
was registered as a trade mark in class 5 by a different owner on 8th October
1986, but that mark was removed from the register on 5th December 1997 because
of non-use. Therefore the words "Solpadeine", "Solpafen" and "Solfen" did in
fact co-exist on the register for some years. Prior to the Trade Marks Act
1996, this would certainly have militated strongly against an argument that
what I might call the re-registration of "Solfen" would amount to an
infringement of the other marks. However, section 14(2) of the Trade Marks
Act, 1996 has introduced a totally new concept into the definition of
infringement. The relevant portion of that sub-section reads:-
7. As
far as I am aware, this idea of "association" has not been considered by our
Courts, but would certainly seem to envisage an extension of the meaning of
"confusion" as used in the Trade Marks Act 1963. At this interlocutory stage
of these proceedings it is not for me to say there is in fact a likelihood of
association of the Defendant's sign with the Plaintiffs registered trade mark,
but I do have to determine whether there is a serious issue to be tried in this
regard. The concept itself comes from article 4(1)(b) of the Council Directive
of 21st December 1988, and apparently derived from Benelux Case Law. In the
case of
Union
v Union Solure
(1984) BIE 137, quoted at paragraph 31.25 of Clark and Smyth on Intellectual
Property Law in Ireland, it was stated:-
8. If
that is the correct test, then I certainly would hold that there is a serious
issue to be tried when all the particular circumstances of this case are looked
at at an oral hearing, as to whether there is such a likelihood of association
in the present case.
9. To
turn to the question of passing off, it has to be said that if one enumerates
the elements of the Plaintiffs packaging, very many of those elements are also
present in the Defendant's packaging. However, that is not the true test.
What the Court must do is look at the overall get up of the packaging, and the
way in which these individual elements are combined. A number of definitions
of passing off have been opened to me, and I personally think that the
definition with the most general application is that of Lord Diplock in
Warnink
v Townsend & Sons (Hull)
(1979) AC 731 where he defined the necessary elements:-
10. It
should be emphasised that the misrepresentation does not have to be a
fraudulent or intentional misrepresentation, and while the Plaintiffs in this
case have sought to impugn the motives of the Defendant in selecting its get
up, I certainly would not be prepared to do so on the evidence as it stands
before me.
11. This
is a somewhat unusual case in that the products themselves are not allowed to
be sold on open shelves by pharmacists, or in supermarkets. They must be sold
over the counter, that is only when asked for by name by the purchaser and
under the supervision of a qualified pharmacist. They are somewhat of a half
way house between prescription drugs and those which may be freely sold in any
supermarket. This does not mean that the public will not see the packaging on
the shelves, but it does mean that the customer will not be able to pick up the
package and examine it closely. It has been suggested in argument on behalf of
the Plaintiffs that there is a strong possibility that a customer with an
uncertain recollection, and I accept that this is the correct test, might ask
a pharmacist for a pain killer with a phrase such as "sol something" and that
confusion would occur. That confusion would be the confusion of the
pharmacist, or the carelessness of the pharmacist in not asking further
questions, rather than the confusion of the customer purchasing the product.
A somewhat similar situation arose in
Sterwin
AG v Brocades (Great Britain) Limited
(1979) RPC 481, where the Plaintiffs drug was in fact a prescription drug. In
that case Whitford J. took the view that there was no likelihood of confusion
as doctors and pharmacists were trained to take very great care in their work
and, if in doubt, to check before acting. There is no doubt that in the
present case, the Plaintiffs' case is very much weakened by the fact that these
are not products on a supermarket shelf but are products which are dispensed by
a person trained to take care. However, while I feel that the Plaintiffs case
is a weak one, I think there is enough merit in it for me to hold that there is
a serious case to be tried on the issue of passing off but I will return to the
weakness in the Plaintiffs case in another context.
12. Having
determined there is a serious issue to be tried, the next point I have to
consider is whether damages are an adequate remedy to the Plaintiffs, should
they succeed, or whether damages would be an adequate remedy for the Defendant,
should an injunction be granted against it, but should the Defendant ultimately
succeed. In both cases, damages are clearly an adequate remedy in the sense
that both parties are very substantial and solvent commercial concerns, and
would be well able to pay any award of damages. The issue remains, however,
whether damages could properly compensate in these circumstances.
13. As
in all these cases, the Plaintiff finds itself in the very difficult position
that it does not know, and cannot know, the extent to which it has lost or may
lose sales through possible confusion, rather than legitimate business
competition. To this extent, damages can virtually never be an adequate remedy
to a Plaintiff, certainly in a situation where there are a number of competing
products on the market, the performance of any of which could affect the
Plaintiffs sales. Similarly, the Defendant can legitimately make the case
that, having expended considerable amounts of money in launching a new product,
it could not possibly calculate the financial loss if it has to take that
product off the market and then possibly re-launch it in a few months time.
This is particularly so when, as in the present case, it is a new type of
product, namely a soluble form of ibuprofen, as somebody else may put a soluble
form of the product on the market in the meantime, and effectively get in first.
14. I
think in the present case damages would not be an adequate remedy for either
side, and accordingly in determining whether an interlocutory injunction should
be granted I have to look at the balance of convenience. In doing so, I come
back to the strength of the Plaintiffs' case, not in relation to the argument
in favour of or against passing off, but in relation to a possible loss should
an interlocutory injunction not be granted. The Plaintiff has sought to
support its argument that there is a likelihood of confusion with evidence from
two sources. Firstly, there is an affidavit from Joseph Gibbons, who is a sales
representative employed by the third named Plaintiff, and secondly there is
survey evidence.
15. Mr
Gibbons purports to give what is of course pure hearsay evidence of three
occasions in which he has been told by pharmacists that they were confused. It
should be noted that the Plaintiffs did not produce any evidence from any
pharmacist. However, the Defendant has produced affidavits from two of the
three persons named by Mr Gibbons, both of whom say that they were not confused
in relation to any similarity between the names on the packet, or indeed the
get up. While hearsay evidence is admissible under certain circumstances in
interlocutory applications, I think this shows the dangers of relying upon it.
16. With
regard to the survey evidence, I can think I can do no more than quote from the
judgment of Whitford J. in
Imperial
Group PLC v Philip Morris Limited
(1984) RPC 293 at page 302 where he said:-
17. In
the present case the methodology of the survey has been severely criticised by
the Defendant, and a good deal of that criticism seems to me to be valid.
However, in any event my own view is that survey evidence is of little or no
value in interlocutory applications, where that evidence is not tested by
cross-examination, and indeed all the background facts relating to that
evidence, such as the actual questionnaires and answers, are not put in
evidence. In the present case there is also the factor that the survey was
taken among members of the public, while it would seem to me to have little
relevance unless it were taken among pharmacists.
18. The
Defendant's product first came on the market about five months ago, and has
been aggressively marketed ever since, with a considerable amount of
advertising. I find it somewhat astonishing that in all that time the
Plaintiffs have been unable to find anybody who says they were confused. Of
course, this is not a prerequisite for success in the action itself, but it is
in my view a highly relevant matter in relation to the balance of convenience.
If there is no evidence that anybody was confused in the last five months, then
I think there is only a weak case for saying that anybody will be confused, or
the Plaintiffs will suffer any loss, in the next three or four months pending
the full hearing of this action. On the other hand, if the Defendant has to
take its product off the shelves and repackage it, and therefore re-market it,
this could cause an enormous loss in the short term. I am prepared to do
everything possible to ensure a speedy trial, and the case will certainly be
heard before the Long Vacation. In those circumstances I have no doubt that
the balance of convenience is against the granting of an interlocutory
injunction and I refuse the relief claimed.