The Competition Appellate Tribunal (CAT) has rejected M/s Karachi Nimco’s appeal, maintaining the Competition Commission of Pakistan’s (CCP) ruling that fined the company Rs. 20 million for trademark infringement and misleading advertising.
Because the appellant did not pursue the appeal, it was dismissed. Notably, the Tribunal has rejected the appeal on the identical grounds for the second time. The corporation filed an application for restoration after the initial dismissal, and the Tribunal granted it.
But when the company’s attorney failed to show up for the next round of proceedings, the Tribunal dismissed the appeal and voiced its disapproval of the use of delay tactics.
In 2019, M/s Nimco Corner filed a complaint with the Competition Commission of Pakistan (CCP) claiming that two rivals, M/s Nimko Corner and M/s Karachi Nimko, were copying its trade dress, trademark, and packaging.
After conducting a thorough investigation, the Commission determined that M/s Nimko Corner and M/s Karachi Nimko had engaged in misleading marketing activities, in contravention of Section 10 of the Competition Act, 2010. According to the investigation, the businesses harmed fair competition by deceiving customers by illegally copying branding aspects.
Unauthorized use of trade dress and trademarks was acknowledged by both parties. The CCP consequently fined M/s Nimko Corner Rs. 25 million and M/s Karachi Nimko Rs. 20 million. The Commission further ordered the entities to stop using the infringing branding and to provide a compliance report detailing the remedial measures they had taken.
The Competition Appellate Tribunal rejected M/s Karachi Nimko’s appeal against the CCP’s order.
CCP’s determination to stop misleading marketing tactics, defend intellectual property rights, and advance an equitable and open marketplace for both consumers and companies is reaffirmed by this enforcement action.
