FDC Limited Vs. Palsons Derma Private Limited

Background of the Dispute

FDC Limited, a well-established pharmaceutical company, filed a suit against Palsons Derma Pvt. Ltd., seeking to restrain the latter from using the mark "CHROMALITE" for cosmetic and skin brightening products, alleging it was deceptively similar to its own mark "KROMALITE", which had been in commercial use since 2016.

Claims of the Plaintiff

FDC claimed prior use and significant market presence of the "KROMALITE" mark in India, supported by registration in Class 5 and substantial sales. The mark, being a coined term with no prior industry use, had acquired distinctiveness. The plaintiff alleged that the defendant’s mark was phonetically and visually similar and adopted with dishonest intent to ride on their goodwill.

Defense by the Defendant

Palsons Derma argued that it independently adopted "CHROMALITE" in 2016 and began its use in 2022 after public demand to abandon its previous mark "FAIRLITE". It asserted that their mark was derived from the Greek word “Chroma” and denied knowledge of the plaintiff’s mark. The defendant contended that both parties’ marks coexisted on the trademark register and were distinguishable by packaging and target audience.

Court’s Findings

The Court held that the plaintiff was a prior user of the mark and had established goodwill and reputation through consistent use and sales. It found the two marks deceptively similar in sound and structure, with overlapping goods and trade channels, leading to a high likelihood of consumer confusion. The defendant’s argument of innocent adoption was rejected as irrelevant in a passing-off claim.

Legal Basis and Order

Relying on precedents including Syed Mohideen v. Sulochana Bai, the Court reiterated that rights of a prior user trump trademark registration in passing-off actions. The Court ruled in favor of the plaintiff, issuing an injunction restraining the defendant from using "CHROMALITE" or any deceptively similar mark during the pendency of the suit.

Case title: FDC Limited Vs. Palsons Derma Private Limited

Date of order: 15th April, 2025

Case No.: CS(COMM) 487/2023

Neutral Citation: 2025:DHC:2576

Name of Court: High Court of Delhi at New Delhi

Name of Judge: Hon’ble Mr. Justice Amit Bansal