New Delhi: The Delhi High Court has delivered a significant ruling against counterfeit medical supplies, ordering those involved in the illegal distribution of fake Johnson & Johnson (J&J) surgical products to pay ₹3.34 crore in damages. The judgment emphasized the severe risks posed to public health and the blatant misuse of J&J’s trademarks.
Justice Amit Bansal censured the accused for selling contaminated, unsterilized surgical materials under J&J’s legally registered brands, including SURGICEL, ETHICON, and LIGACLIP. These fake medical devices, crucial in surgical procedures, were found to be improperly treated, raising serious safety concerns for patients.
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Counterfeiting Threatens Lives
The court stressed that the crime extended beyond mere trademark infringement, calling it a “serious offense with life-threatening consequences.” The ruling noted that the counterfeiters deliberately deceived consumers for financial gain, undermining patient safety and trust in medical products. Additionally, the judgment highlighted how the scandal tarnished J&J’s reputation, as substandard products carried its branding.
International Fraud Uncovered
The case, initiated in 2019, gained traction after a U.S.-based neurosurgeon identified irregularities in SURGICEL products while performing brain surgery. A subsequent investigation led to the exposure of a counterfeit supply chain spanning distributors in the UAE, the U.S., and a Delhi-based firm, M/s Medserve. Authorities discovered that expired medical goods had been repackaged with forged expiry dates and then circulated through international markets.
Hefty Penalties for Offenders
The court imposed ₹2.34 crore in compensatory damages, calculated as 25% of the estimated ₹9.39 crore illicit earnings of the accused. An additional ₹1 crore in punitive damages was levied to set a precedent against fraudulent medical trade. “A 25% margin is a cautious estimate of the actual damage inflicted,” observed Justice Bansal, citing financial records and confiscated documents.
In addition to financial penalties, a permanent injunction now restrains the accused from using J&J’s trademarks or engaging in activities that could mislead consumers. The judgment was based on substantial evidence from court-appointed Local Commissioners, who recovered fake stock, falsified invoices, and incriminating records during enforcement raids.
J&J’s legal team, represented by Lall & Sethi Advocates, hailed the ruling as a landmark step toward protecting patient safety and strengthening medical supply chain integrity.
