Kalina JSC and Nefis Cosmetics JSC go for voluntary settlement of suit

25 August 2006 (13:27)

Kalina JSC announced that that it had settled its suit concerning Nefis Cosmetics JSC out of court in today’s press release.

The consent decree signed today states that the parties withdraw all the claims against each other and; it also declares that all the disputes concerning the use of one another’s trademarks should be seen as settled by the parties; the parties admit that they have no claims against each other, be they the ones mentioned in the decree or the ones currently processed by the courts of arbitration.

‘This dispute between Russia’s two largest household chemicals and beauty products producers started in April 2003 when Kalina launched TriMax laundry detergent whose packaging was extremely similar to that of BiMax, produced by Nefis Cosmetics since 2001. This resulted in both legal action against Kalina and a counterattack by Nefis Cosmetics, namely, the launching of Milenkaya Feya (Pretty Fairy) shampoo (a total look-alike of Malenkaya Feya (Little Fairy) produced by Kalina) in February 2004,’ reported the spokesperson for Kalina.

Neither of the trademark-abusing items is currently produced, and selling them has been made illegal. In the course of the court proceedings, which lasted for three years, the two parties laid 46 claims against each other altogether, and the sum of damages claimed by the companies amounted to 1.214 billion RUR. Kalina and Nefis Cosmetics have already paid 1.375 billion to one another following the decisions of courts. By the time they reached the voluntary settlement, they had laid claims against each other worth 1.178 billion altogether.

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