CCP slaps Rs45m penalty on two companies

Companies were found copying trademark of another firm

ISLAMABAD: The Competition Commission of Pakistan (CCP) has passed an order and imposed a penalty of Rs45 million on two snack food (Nimco) sellers for copying the registered trademark and other designs of another company and violating Section 10 of the Competition Act 2010.

Nimco Corner filed a complaint with the CCP that its registered trademark, name and product packaging were being fraudulently used by Mr Nimko Corner and Karachi Nimco.

The company claimed to be the sole proprietor of the registered name "Nimco" since 1947 as well as distinctive logos and packaging.

The CCP's inquiry established that Mr Nimko Corner and Karachi Nimco had violated Section 10 by imitating the trademark, packaging, colour scheme, design and theme of products of Nimco Corner.

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In the wake of the inquiry, show-cause notices were issued to the two companies. During hearings, Mr Nimko Corner failed to appear before the bench despite several reminders.

The bench found that Mr Nimko Corner had committed severe violation by using the colour scheme, taglines, shapes, patterns and the name of Nimco Corner.

The bench observed that Mr Nimko Corner, instead of investing in developing its own brand, opted to freely ride on the trademark "Nimco" owned by Nimco Corner.

Similarly, the bench also found Karachi Nimco violating Section 10 by using the word "Nimco" in its branding and also copying the name and packaging of Nimco Corner.

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While rejecting the objections raised by Karachi Nimco's counsel, the bench held that under Section 59 of the Competition Act, the Act would have an overriding effect on any other law for the time being in force, which inter alia includes the Trademark Ordinance.

The CCP imposed a penalty of Rs25 million on Mr Nimko Corner and Rs20 million on Karachi Nimco for violating Section 10 of the Competition Act and directed the companies to cease and desist from the use of word "Nimco", trademark, trade dress and packaging material similar to that of the Nimco Corner.

Published in The Express Tribune, January 11^th, 2020.

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