Background of the Case:

Bahawalpur-based Al-Rehman Oil Mills complained to CCP against nine companies namely Niaz Corporation, Hamza Corporation, Muslim Corporation, Mian Traders, Bahawalpur Oil Mills, Riaz Oil Mills, Baloch Oil Mills, Azhar Kiryana Store, and Waqas Oil Mills for fraudulently using its registered trademark, ‘Taizgaam,’ with slight modifications in their marketing material. The complainant said that this practice by these companies was harming its business interest and its hard-earned goodwill among consumers.

The CCP’s enquiry found that the nine companies were infringing the trademark and imitating the trade dress (packaging size, colour combinations, logo design, label design, text, font type, size etc.) of Al-Rehman’s Taizgaam, resorting to copycat packaging or parasitic copying, which was a violation of Section 10 of the Competition Act, 2010. Show cause notices were issued to the said undertakings based on the recommendation of the enquiry report.

Order:

The Commission held, based on the available record, that all the nine respondents were acting in contravention of Section 10 the Competition Act and fraudulently using the Complainants trademark / labeling and packaging, which also resulted in the distribution of misleading information to the consumers lacking a reasonable basis.

The Commission further held that the Respondents’ conduct is intended to take advantage of the goodwill attached to the Complainant’s trademark and trade dress by misleading the consumer, which is a clear infraction of Section 10(2)(a) of the Competition Act and amounts to distribution of misleading information capable of harming the business interests of the Complainant.

During the hearings, majority of the Respondents expressed their willingness to comply with CCP’s directions. The Commission imposed a penalty of PKR 300,000 on each of the nine companies for violating Section 10 of the Competition Act and directed them to stop using “Taizgaam” with their products.

The undertakings were also directed to file individual compliance reports with CCP within 30 days.

CURRENT STATUS:

9 Feed Manufacturers filed appeal before CAT challenging the order. Matter is subjudice before CAT.