This post was originally published on 18th December, 2011.<\/p>\n
Bayer and Cipla have recently settled trade mark litigation with respect to Advantage and Advantix trade marks.\u00a0 These trade marks were registered by Bayer at the USPTO and are being used for veterinary products. Cipla has been marketing one of its pet products under the trade mark, DA Double Advantage with the aid of an online supplier called Archipelago. Aggrieved by Cipla’s actions, Bayer filed a suit in a US court asking for a\u00a0 preliminary injunction against use of the trade mark. The parties have now\u00a0 settled the dispute out of court.<\/p>\n
As per the settlement, Cipla has agreed to refrain from using the trade marks, DA Double Advantage and Advance for its animal products. It also agreed to pay a compensation of around two hundred\u00a0 thousand dollars for use of the trade mark and attorney costs. Furthermore, it has been reported\u00a0 that Cipla also agreed to refrain from making products covered by Bayer’s patent.<\/p>\n
A quick peek at recent IP litigation in India indicates that settlement of IP disputes is generally favoured by parties over fighting the case till the end. Litigation is used by many companies to show intent of enforcement and seriousness to safeguard their\u00a0 IP interests. Many cases are settled after initiation of the suit or preliminary orders. Courts also encourage parties to settle disputes to avoid long drawn battles that are more often than not unproductive. Settlements are more common in entertainment and pharma sectors as impact of cases on business interests is much higher in these fields.<\/p>\n