February 11, 2016
The Supreme Court rejected a request to lift a permanent injunction banning the sale of ZYNAPS, an anti-convulsant drug for epilepsy. In a Petition for Review seeking to set aside a Court of Appeals’ decision permanently enjoining the sale of ZYNAPS, the Supreme Court ruled that the issue has become moot in view of the trial court’s decision on the merits of a trademark infringement case. This is an important procedural case regarding the effect of a final decision on the merits when there is a pending appeal on an ancillary writ such as those involving a temporary restraining order or preliminary injunction.
The case originated from a complaint filed by Natrapharm, Inc., a local pharmaceutical company, which manufactures and sells a medicine for heart and stroke patients under the “ZYNAPSE” trademark. Natrapharm filed a case against Zuneca Pharmaceutical, the distributor of ZYNAPS, for trademark infringement with a prayer for a temporary restraining order or a writ for preliminary injunction. In its Answer, Zuneca alleged that it was the first to use the mark “ZYNAPS” based on a product registration issued in 2003. On the other hand, Natrapharm only obtained its trademark registration for “ZYNAPSE” in 2007.
