Pharmacia Corp. v. Alcon Laboratories, Inc.

201 F. Supp. 2d 335, 2002 U.S. Dist. LEXIS 9323, 2002 WL 1059534
CourtDistrict Court, D. New Jersey
DecidedMay 14, 2002
DocketCiv. 01-1539(WGB)
StatusPublished
Cited by21 cases

This text of 201 F. Supp. 2d 335 (Pharmacia Corp. v. Alcon Laboratories, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pharmacia Corp. v. Alcon Laboratories, Inc., 201 F. Supp. 2d 335, 2002 U.S. Dist. LEXIS 9323, 2002 WL 1059534 (D.N.J. 2002).

Opinion

OPINION

(Amended)

BASSLER, District Judge.

This is an action arising under the Lan-ham Act, 15 U.S.C. § 1051, et seq. and the laws of the State of New Jersey for trademark infringement and trademark dilution. The Court has subject matter jurisdiction pursuant to 15 U.S.C. § 1121(a) and 28 *339 U.S.C. §§ 1331 and 1338. This Court has supplemental subject matter jurisdiction over all other claims under 28 U.S.C. § 1367(a). Venue is proper in this District. 28 U.S.C. § 1391(b).

Plaintiff Pharmacia Corporation and its related companies filed a complaint on March 30, 2001 against Alcon Laboratories Inc., seeking a preliminary injunction against the use of an existing trademark. The application for a preliminary injunction was submitted to the Court for determination on the basis of five days of testimony of witnesses at an evidentiary hearing, as well as affidavits, exhibits and the transcripts of testimony given upon oral depositions.

FINDINGS OF FACT

The Court makes the following findings of fact 1 and conclusions of law pursuant to Rule 52 of the Federal Rules of Civil Procedure. To the extent that any of the findings of fact might constitute conclusions of law, they are adopted as such. Conversely, to the extent that any conclusions of law constitute findings of fact, they are adopted as such.

I.THE PARTIES AND THE NATURE OF THE ACTION

A. THE PARTIES

1. Plaintiff Pharmacia Corporation.is a Delaware corporation with its principal place of business located at 100 Route 206 North, Peapack, New Jersey 07977. Phar-macia Corporation is the parent corporation of the other plaintiffs: Pharmacia AB (formerly known as Pharmacia & Upjohn AB), a company organized under the laws of Sweden; Pharmacia Enterprises S.A. (formerly known as Pharmacia & Upjohn S.A.), a company organized under the laws of Luxembourg; and Pharmacia & Upjohn Company, a company organized under the laws of Delaware (collectively, “Pharma-cia”).

2. Defendant Alcon Laboratories, Inc. (“Alcon”) is a Delaware corporation and a wholly-owned subsidiary of Alcon Holdings, which is a wholly-owned subsidiary of Alcon Universal Limited, which is a wholly owned subsidiary of Nestle S.A. Alcon’s principal place of business is 6201 South Freeway, Fort Worth, Texas 76134.

3. Pharmacia and Alcon are pharmaceutical companies that manufacture and market, inter alia, ophthalmic preparations for the treatment of the eye disease glaucoma.

B. THE NATURE OF THE ACTION

4. Pharmacia initiated this civil action on March 30, 2001 under the Lanham (Trademark) Act of 1946, 15 U.S.C. § 1051, et seq. (the “Lanham Act”) and New Jersey statutory and common law.

5. On April 16, 2001, Pharmacia moved for a preliminary injunction to enjoin defendant Alcon from infringing and diluting *340 Pharmacia’s federally registered Xalatan trademark in connection with Aleon’s use of the name Travatan for the sale of a prostaglandin-based product used for the treatment of the eye disease glaucoma.

II.THE EYE DISEASE GLAUCOMA AND THE GLAUCOMA MARKET

6. There is no dispute about the nature of the eye disease glaucoma and the glaucoma market. This case is about the medications used in the treatment of glaucoma, a disease of the eye marked by increased intraocular pressure (“IOP”) within the eye. Elevated IOP is caused by excess fluid within the eye that can result in damage to the optic disk and cause gradual loss of vision. Left untreated, glaucoma can result in blindness.

7. There is no known cure for glaucoma. The goal in treating patients with glaucoma and ocular hypertension is to decrease and maintain the IOP to within normal limits.

8. Three million Americans, primarily those age 40 and over, now suffer from the disease. One million are African-Americans, for whom the disease strikes with greater frequency, is more severe and is more difficult to treat.

9. The newest class of prescription drugs used to treat elevated IOP associated with glaucoma are “prostaglandin analogues.” They reduce IOP by increasing the outflow of fluid from the eye. The three largest-selling prostaglandin analogue products are Xalatan, Lumigan and Travatan. Pharmacia markets Xalatan; the generic name of its active ingredient is “latanoprost.” Aleon markets Travatan; the generic name of its active ingredient is “travoprost.” Allergan, Inc. (“Allergan”) markets Lumigan; the generic name of its active ingredient is “bimatoprost.”

10. Travatan, Xalatan and Lumigan can be dispensed only with a doctor’s prescription.

11. Surveys of ophthalmologists conducted by Pharmacia in May and August of 2001 show over 95% awareness of the brand names of all major glaucoma medications, including Travatan and Xalatan.

12. The Xalatan mark as a whole is strong and is a “famous” mark among ophthalmologists.

III. PHARMACIA AND THE DEVELOPMENT OF THE XALATAN PRODUCT AND NAME

13. Alcon does not dispute Pharmacia’s sales figures, advertising expenditures or that Xalatan has received media coverage.

14. Prior to Pharmacia’s introduction of Xalatan, no prostaglandin product for glaucoma was available on the market in this country and many doctors were uncertain about its use because the product was widely believed to cause inflammation, pain and other detrimental effects in eyes.

15. Xalatan was a commercial success from the beginning; in its first year, sales in this country were approximately $26 million.

16. Since 1996, sales in this country have continued to increase: In 1997 sales were $126 million; in 1998 sales were $197 million; in 1999 sales were $247 million and in 2000 they were $295 million.

17. In those years, worldwide sales of Xalatan were 139, 282, 452 and 615 million dollars.

18. From its launch of Xalatan in 1996, Pharmacia undertook a massive marketing and educational campaign designed to educate the medical field about its new product and its benefits, and to encourage practitioners to switch their patients to Xalatan. This marketing and educational campaign was particularly important be *341

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201 F. Supp. 2d 335, 2002 U.S. Dist. LEXIS 9323, 2002 WL 1059534, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pharmacia-corp-v-alcon-laboratories-inc-njd-2002.