Durex in court to stop condom imports

Anglo-Dutch multinational Durex has moved to court seeking to stop a Kenyan pharmaceutical firm from importing its condoms, arguing that it has exclusive rights to bring the products into the country.

Durex says Metro Pharmaceuticals has infringed on its exclusive right to import the condoms in Kenya. The condom maker holds that Metro is illegally supplying Durex condoms in several major towns in the country including Nairobi, Naivasha, Thika, Meru, Nyeri and Nakuru.

The condom-maker has sued Metro through LRC Products Limited — one of its sister companies registered in England and Wales. LRC Products operates in the country through Reckitt Benckiser, another sister company. It is seeking to seize any Durex products in Metro’s possession.

The High Court has temporarily stopped Metro Pharmaceuticals from importing, supplying or offering for sale Durex products until the suit is heard.

“Metro is importing, distributing and selling Durex products without authority from the LRC, which action has greatly affected the operations of the plaintiff leading to huge loss in terms of profit. Metro’s actions are outrightly [sic] illegal and unfair business competition against LRC,” the UK firm holds.

Metro has denied claims by LRC that it has been repackaging Durex condoms, arguing that it sources for the goods from wholesale suppliers in the UK.

Metro says in its response that it reserves the right to buy the condoms from other suppliers around the world and to resell them in the Kenyan market.

Niraj Shah, a director of the Kenyan firm, says Metro buys Durex condoms from other suppliers in the UK who are free to sell them to anyone.
He adds that as the owner of the Durex trademark, LRC only has exclusive rights to manufacture the condoms.

But Durex argues that Metro is defying a cease-and-desist order by the Pharmacy and Poisons Board (PPB), which regulates the drugs and medical devices industry, by importing the condoms. It has attached a letter from PPB to Metro, ordering it to stop dealing in the products.

The UK-based condom-maker wants the police to help it seize all Durex products in Metro’s possession.

Metro holds that allowing LRC to exclusively supply Durex condoms in Kenya would lower the product’s stock, which would see its price shoot up.

Mr Shah says it would be in the interest of the public to allow other suppliers to deal in the product, as it is a contraceptive intended to reduce unwanted pregnancies and the spread of sexually transmitted diseases. 

“Should the court grant the orders sought, it would be imposing a restriction on a number of sellers of Durex products. The effect would be to reduce supply and increase the price for the consumer,” Mr Shah holds.

Metro has accused Durex of selectively disclosing information to the court, as it says the issue was first in dispute in 2013. It says it adequately responded to Durex’s concerns in a letter.