In a significant ruling, Delhi High Court protecting Intellectual Property Rights and public health, has issued a permanent injunction in favor of Johnson & Johnson, restraining a New Delhi-based entity from infringing its trademarks and distributing counterfeit surgical devices. Justice Amit Bansal, who presided over the case, not only granted Johnson & Johnson’s plea but also imposed substantial costs of approximately Rs. 3.34 crore on the defendants, emphasizing the grave public health risks posed by counterfeit medical products.

The pharmaceutical giant had moved the court against M/s Medserve, owned by Pritamdas Arora, after large quantities of fake medical products bearing the trademarks ‘Surgicel,’ ‘Ligaclip,’ and ‘Ethicon’ were discovered in circulation.

The dispute arose after a neurosurgeon at the University of Kentucky Medical Center in the United States identified irregularities in surgical devices labeled with Johnson & Johnson’s ‘Surgicel’ mark during a brain surgery in 2019. Upon investigation, it was found that over 1,000 counterfeit units had been purchased from a U.S.-based company, XS Supply, which sourced them through a complex supply chain involving multiple entities, eventually tracing back to Pritamdas Arora’s Medserve in India. This revelation prompted Johnson & Johnson to file a suit seeking a permanent injunction, prohibition of counterfeit sales, and damages.

The Court noted that a temporary injunction had already been issued in October 2019, barring the defendants from trading under Johnson & Johnson’s trademarks. During enforcement, court-appointed Local Commissioners searched the defendants' premises and uncovered a significant cache of counterfeit products, along with documents detailing illegal import and export activities.

A staggering 10,000 counterfeit surgical products were seized, along with Rs. 16 lakh in cash, indicating the scale of the fraudulent operation. Further scrutiny of financial records revealed suspected involvement in illicit hawala transactions to launder illegal profits.

Expressing concern over the risk posed by these counterfeit medical devices, the Court stated, “The sale of fraudulent surgical equipment is not just an infringement of trademark but a reckless endangerment of public health. The defendants have exhibited a calculated and malicious intent to deceive medical professionals and patients alike.”

The Court was particularly disturbed by intercepted conversations in which Arora allegedly suggested bribery as a solution to complaints about contaminated counterfeit products rather than corrective action. The defendants’ repeated failure to disclose their financial details, despite multiple orders, further highlighted their lack of transparency.

Considering the overwhelming evidence of fraud and public endangerment, the Court deemed it appropriate to impose both compensatory and exemplary damages. It awarded Johnson & Johnson Rs. 2.34 crore in compensatory damages and an additional Rs. 1 crore in punitive damages, reaffirming that counterfeiting medical products would not be tolerated. "The deliberate misrepresentation and falsification of expiry dates on surgical devices demonstrate an alarming disregard for human lives," the judgment noted.

Case Title: Johnson & Johnson vs.Pritamdas Arora T/A M/S Medserve & Ors.

Advocates for Plaintiff: Ms. Nancy Roy, Mr. Raghav Malik, Ms. Prakriti Varshney and ors.