The UK High Court of Justice has ruled that an American branch of a European pharmaceutical company has breached a decades old trademark agreement.
In a ruling this month, the court found that the US-based Merck Sharp & Dohme (MSD) had gone against the terms of what had previously been agreed.
Following the end of the Second World War, the firm had split into two parts, with MSD becoming an independent US branch. A trademark co-existence agreement was struck between the two parties in 1955 and modified 15 years later.
Four years ago, Merck – which has its headquarters in Germany – wrote to MSD raising concerns that the American firm with which it was no longer affiliated was using the ‘Merck’ brand outside of the US.
Legal battles were launched in a number of jurisdictions, including Britain.
The court had to consider how the terms of an agreement set out 45 years ago should be interpreted in the internet age. Ultimately it found that MSD was in breach of the terms.
As a consequence, an order was made restraining MSD from describing itself as ‘Merck’ in any online or printed material made available in the UK.
Friederike Rotsch, general counsel at Germany’s Merck, said the firm had set out to protect the status quo established by the 1970 agreement.
MSD said it was disappointed by the ruling and would be appealing against the court’s decision.