Competition Tribunal Upholds CCP Penalty in Trademark Dispute

The Competition Appellate Tribunal (CAT) has dismissed the appeal filed by M/s Baba Plastic against the Competition Commission of Pakistan’s (CCP) order concerning the fraudulent use of M/s ShajarPak (Pvt) Limited’s registered trademark. ShajarPak, a fabric manufacturer, filed a complaint with the CCP alleging that eight companies, including M/s Baba Plastic, were fraudulently using its trademark ‘Pasha Fabrics’ on their products’ packaging and labeling. Following an inquiry, the CCP confirmed that ShajarPak had not authorized any company to use its trademark. By copying the trademark and trade dress, these companies were deceiving consumers, which was capable of harming ShajarPak’s business interests, in violation of Section 10 of the Competition Act, 2010. Consequently, the CCP issued a Show Cause Notice and, after having heard the parties, imposed a penalty of PKR 750,000 on Baba Plastic. Baba Plastic appealed the CCP’s decision before the CAT. However, due to their repeated failure to appear at scheduled hearings, the Tribunal dismissed the appeal for non-prosecution.