Trademark Enforcement and Public Interest in Pharmaceutical Disputes: DHC's Approach in Novo Nordisk

Introduction

In a significant resolution in Novo Nordisk A/S v. Dr. Reddy’s Laboratories Ltd [CS(COMM) 317/2026], decided on March 30, 2026 The Delhi High Court presents an important examination of the interplay between trademark enforcement and public health considerations in pharmaceutical disputes. The case raises a central question: to what extent can public interest influence the grant and scope of injunctive relief in cases involving deceptively similar medicinal trademarks?

While Indian trademark jurisprudence has traditionally emphasized strict standards in cases involving pharmaceutical products given the potential risks to patient safety this decision reflects a nuanced judicial approach. It demonstrates a willingness to calibrate remedies in light of broader societal considerations, particularly access to essential medicines.

Factual Background

The dispute arose when Novo Nordisk A/S, a global pharmaceutical company, sought an injunction against Dr. Reddy’s Laboratories Ltd. for the use of the mark “OLYMVIQ,” alleging deceptive similarity with its well-known trademark “OZEMPIC.” Both products were prescribed for the treatment of Type-2 diabetes and contained the same active ingredient, semaglutide.

Novo Nordisk argued that the similarity between the marks created a likelihood of confusion, particularly in a therapeutic context where prescribing and dispensing errors could have serious consequences. Dr. Reddy’s, on the other hand, had already manufactured and introduced its product into the market at a time when demand for semaglutide-based treatments was significantly high.

Legal Framework

Trademark infringement in India is governed by the Trade Marks Act, 1999, particularly Section 29, which addresses unauthorized use of marks leading to confusion or association. In pharmaceutical cases, courts apply a heightened standard of scrutiny, as established by the Supreme Court in Cadila Healthcare Ltd. v. Cadila Pharmaceuticals Ltd., which recognized that even a possibility of confusion in medicinal products may have severe public health implications.

The Cadila judgment laid down key factors for assessing deceptive similarity in pharmaceutical marks, including the nature of the goods, the class of purchasers, and the likelihood of confusion arising from phonetic and visual similarities. This stricter threshold has traditionally resulted in courts granting strong injunctive relief to prevent potential harm.

Findings of the Court

Justice Jyoti Singh held that “OLYMVIQ” was deceptively similar to “OZEMPIC,” thereby constituting trademark infringement under established principles.

Ordinarily, such a finding would result in a comprehensive injunction, including cessation of use, recall of products, and destruction of infringing goods. However, the Court departed from this conventional approach by introducing what it described as a “third factor” public interest.

Recognizing the critical role of semaglutide in managing Type-2 diabetes and the substantial demand for such medication, the Court declined to order immediate destruction of the existing stock. Instead, it adopted a calibrated remedy.

This represents a departure from established jurisprudence, moving beyond the binary "infringement vs. remedy" logic to a more holistic framework where social and economic consequences can override traditional proprietary rights.

Public Interest as a Limiting Factor in Remedies

The Court permitted Dr. Reddy’s to sell its existing stock for a limited period of 30 days, subject to an undertaking that no further production under the infringing mark would take place. Importantly, any unsold stock after this period was directed to be donated to government hospitals for free distribution.

This approach reflects an emerging trend in Indian jurisprudence toward an equitable calibration of remedies. Rather than adhering to a strictly prohibitory framework, the Court balanced two competing considerations:

• the enforcement of trademark rights, and

• the need to avoid disruption in access to essential medicines.

The decision suggests that, in appropriate cases, public interest may operate not as a defense to infringement, but as a factor influencing the nature and scope of relief granted.

Comparative Perspective

In contrast, courts in jurisdictions such as the United States and the European Union have generally adopted a stricter approach to trademark enforcement in pharmaceutical disputes. Under the Lanham Act in the United States, findings of likelihood of confusion often lead to immediate injunctive relief, with limited scope for public interest-based modification of remedies.

Similarly, European courts prioritize the prevention of consumer confusion, particularly in medicinal products, where even minor similarities may justify injunctive relief. While public health concerns are acknowledged, they are typically addressed through regulatory mechanisms rather than through dilution of trademark remedies.

Against this backdrop, the Indian approach reflects a distinct model one that integrates public interest considerations directly into the adjudicatory process.

Critical Analysis

The Delhi High Court’s decision represents a significant development in the evolution of trademark remedies in India. By incorporating public interest into the remedial framework, the Court has introduced flexibility into an otherwise rigid enforcement regime.

However, this approach raises important questions. First, the dilution of immediate injunctive relief may weaken the deterrent effect of trademark enforcement, particularly in the pharmaceutical sector where brand differentiation serves as a critical safeguard against medical error. Second, there is a risk that infringers may seek to invoke public interest considerations strategically to mitigate liability.

At the same time, the Court’s refusal to permit continued production under the infringing mark ensures that the core principle of trademark protection remains intact. The remedy, therefore, can be understood as a calibrated response one that penalizes infringement while avoiding collateral harm to patients.

Conclusion

The decision in Novo Nordisk A/S v. Dr. Reddy’s Laboratories Ltd. illustrates a nuanced shift in Indian trademark jurisprudence, particularly in the context of pharmaceutical disputes. It demonstrates that while trademark rights remain enforceable, the nature of remedies may be shaped by compelling public interest considerations.

Rather than signaling a departure from established principles, the judgment reflects an evolution toward a more context-sensitive approach to enforcement, one that seeks to reconcile private rights with broader societal needs. In doing so, it positions Indian courts at the intersection of intellectual property protection and public health governance, offering a model that may influence future adjudication in similar disputes.

Authors:

Mohit Porwal, Associate Partner

Yashika Gupta, Intern

Disclaimer:

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