Joint Ventures

INDIA

Case filed against Emami fairness cream

The Calcutta High Court has restrained Emami Ltd from using the name of Activor Corporation, a US based company, on their products, packaging and publicity material.

The suit was filed on the basis of an agreement entered into with some Calcutta-based businessmen as petitioners and the US-based company where the foreign company agreed to transfer know-how to the petitioners to manufacture pharmaceutical, neutraceutical and cosmoceutical products.

It was alleged by the petitioners that the Emami "Fair & Handsome" fairness cream for men used the name of the US company, without any authorisation.

It was further alleged that Emami claimed on the packaging that the product was being sold by it in collaboration with the US company.

The petitioners said they were shocked at such claims of Emami and sought clarification from the US company, which in reply confirmed that it had not entered into any tie up with Emami nor allowed Emami to use its name in any way.

The counsel for the petitioners, said in the court that the petitioners were solely and exclusively entitled to use and exploit all technical information on behalf of the foreign company.

They argued that Emami had launched a massive marketing and advertisement campaign using the Activor brand name and corporate name, which only the petitioners were exclusively entitled to use in India .

It was further alleged, the Emami group was seeking to unfairly capture the huge market for the product, Fair and Handsome, a fairness cream for men. The claim of Emami, that it had permission to use the name of the US company, was false and fraudulent, the counsel alleged.

The petitioners alleged that The Emami group was acting fraudulently and making misrepresentation to consumers and public at large with intent to deceive the public and the petitioners.

The petitioners sought the appointment of a Receiver to take possession of all boxes, cartoons, labels, containers and other packaging materials and publicity materials containing the name of the foreign company. Justice K J SenGupta of Calcutta High Court directed the petitioners to serve notice to Emami and has passed an interim order, appointing a further hearing in February 2006.