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Informist, Tuesday, May 19, 2026

 

--HC bars Reddy Pharma from using 'Reddy' name for pdts on plea by Dr Reddy's

 

NEW DELHI – The Delhi High Court has permanently restrained Reddy Pharmaceuticals Ltd. from manufacturing, selling or using the name 'Reddy' for its pharmaceutical products, as it is similar to Dr. Reddy's Laboratories Ltd.'s 'Dr. Reddy's' trademark. The high court also upheld an order by the Intellectual Property Appellate Board that directed the trademarks registry to remove 'Reddy' from the name of Reddy Pharmaceuticals. 

 

The adoption and use of the 'Reddy' trademark by Reddy Pharmaceuticals is tainted from the outset and cannot be saved by subsequent use or by claiming that it is a common surname, the high court said. Reddy Pharmaceuticals' actions indicate an attempt to capitalise on Dr. Reddy's Laboratories' established goodwill in the pharmaceutical sector, and as such, the former cannot claim protection on its mark, said the court.

 

Reddy Pharmaceuticals was fully aware of Dr. Reddy's Laboratories' goodwill and reputation in the pharmaceutical market, said a bench of Justice Om Prakash Shukla and Justice C. Hari Shankar. The parties were engaged in a subsisting commercial relationship, and Reddy Pharmaceuticals had direct knowledge of Dr. Reddy's Laboratories' business operations, the bench said. Reddy Pharmaceuticals' subsequent adoption of the mark 'Reddy' in the same field of activity, coupled with the use of the address on its packaging despite having no manufacturing facility in Hyderabad, clearly points towards lack of bona fides, it said. 

 

Dr. Reddy's Laboratories has established a significant market presence and goodwill associated with the mark 'Dr. Reddy's', said the high court. Adoption of the mark 'Reddy' by Reddy Pharmaceuticals, within the same field of activity, is likely to create an impression of association, affiliation, or continuation with Dr. Reddy's business, said the court.

 

Dr. Reddy's Laboratories was established in 1984 by Dr. K. Anji Reddy, and has built a strong foundation in the fields of research and drug development. Dr. Reddy's Laboratories said that through long, continuous, and extensive use of its trading style, it has acquired substantial reputation and goodwill in the pharmaceutical industry. The word 'Reddy' is the essential and dominant feature of its trading style, and extensive use of this in relation to pharmaceutical products has led to a strong association of the mark with its goods, Dr. Reddy's Laboratories said.

 

It added that it had initially engaged Reddy Pharmaceuticals for the business in relation to supply of active pharmaceutical ingredients to the latter and had been purchasing bulk drugs from it since 1997 for distribution to other formulators. The relationship between the two companies was initially cooperative, with Dr. Reddy's Laboratories supplying ingredients to Reddy Pharmaceuticals for distribution in the market. 

 

In the beginning of their business relationship, Dr. Reddy's Laboratories did not object to Reddy Pharmaceuticals' use of the corporate name because, at that time, the latter operated merely as a distributor of Dr. Reddy's products. However, the relationship between the parties changed significantly when Reddy Pharmaceuticals was appointed as Dr. Reddy's commercial agent for marketing the latter's products in northern India. Dr. Reddy's contended that Reddy Pharmaceuticals' subsequent activities, particularly the prominent use of the term 'Reddy' in its branding and marketing, caused confusion among the public and gave rise to the likelihood of "passing off" in law. Reddy Pharmaceuticals' actions, including the use of 'Reddy' as part of its branding for pharmaceutical products, are in direct conflict with the established goodwill associated with the mark 'Dr. Reddy's', said Dr. Reddy's Laboratories.

 

Thereafter, Reddy Pharmaceuticals began marketing pharmaceutical preparations in finished dosage forms under various brand names, prominently displaying the mark 'Reddy', said Dr. Reddy's Laboratories. Reddy Pharmaceuticals represented to its distributors and agents that it was part of the 'Reddy group', thereby attempting to leverage the goodwill and reputation associated with Dr. Reddy's name and mark, it said. Consequently, Dr. Reddy's filed a permanent injunction suit against Reddy Pharmaceuticals and also sought removal of the 'Reddy' name from the trademarks registry.

 

Reddy Pharmaceuticals said 'Reddy' is a common surname, which forms part of its bona fide corporate name, adopted because it is the surname of its managing director. It use is consistent with industry practices and does not infringe upon any proprietary rights held by Dr. Reddy's, Reddy Pharmaceuticals argued. 

 

At 1338 IST, shares of Dr. Reddy's Laboratories Ltd. were down 0.7% at INR 1,322.40 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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