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Upjohn Company v. Riahom Corporation

641 F. Supp. 1209 (1986)

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Upjohn Company v. Riahom Corporation

United States District Court for the District of Delaware
641 F. Supp. 1209 (1986)

Facts

The Upjohn Company (Upjohn) (plaintiff) discovered that one of its patented compounds, minoxidil, caused hair growth. Upjohn began marketing minoxidil as Regaine and sought FDA approval, which was required for a hair-growth drug. Upjohn spent over $100 million in research and development of Regaine. In Italy, Kemyos Bio Medical Research (Kemyos) later filed patent applications for a minoxidil compound called Rivixil after minimal clinical testing. No patent was issued. Riahom Corporation (defendant) bought Rivixil from Kemyos, shipped it to New York, and had a third party package it for sale. Riahom marketed Rivixil as a cosmetic to salons at a $150 price point. Riahom did not seek FDA approval and did not conduct any safety or efficacy testing. Riahom’s advertisements claimed Rivixil contained a clinically tested patented compound and referred to news coverage of Regaine. Riahom claimed that Rivixil grew hair. Upjohn sued Riahom for patent infringement and unfair competition, seeking a preliminary injunction. Riahom argued that Rivixil did not actually induce hair growth but merely promoted a fuller, thicker head of hair. After denying a preliminary injunction based on patent infringement, the court considered whether to grant a preliminary injunction due to unfair competition.

Rule of Law

Issue

Holding and Reasoning (Wright, J.)

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