Perrigo, a private label manufacturer of over-the-counter beauty and pharmaceutical products was formerly known as Clay-Park Labs and is a member of the Israel-based Agis group. It supplies retailers all over the US with products that aim to undercut bigger brands.
The P&G lawsuit is for trademark and patent infringement and was filed with the US federal court for the Southern District of Ohio.
In the suit, P&G claims 'intellectual property infringement by numerous Clay-Park products which mimic Procter & Gamble's Olay skin care lines, including Olay Age Defying Daily Renewal Cleanser and Olay Age Defying Daily Renewal Cream products'.
It also claims infringement of Olay's 'stylized woman' registered trademark on Perrigo products. The image has adorned Olay products since its inception back in the 1950's and has become a symbol of the megabrands global reach.
There are four lines of products named in the suit and four separate P&G patents involved. P&G is asking the court to issue a permanent injunction to stop distribution of all of these products on the grounds that they piggyback the market and advertising efforts of the company and eat into its sales.
"We believe these products have been designed to trade on the goodwill of our brands and on our patented technologies," said Jim Johnson, P&G's chief legal officer.
"Consumers suffer when look-alike products create confusion. It's important that consumers looking for our products are confident the products they buy actually originate from P&G and provide the quality and benefits they seek. Therefore, we are asking the court to stop this conduct," Johnson added.
Perrigo's skin care line, which includes a daily face wash, renewal cleanser, gentle skin cleanser and night-time firming cream, has proved popular in retail outlets across the US and has contributed to a continued improvement in the company's performance.
Indeed shares in the Perrigo company jumped in recent trading on the New York Stock Exchange on the back of a significant jump in sales. Total sales for the 12 months ending in July stood at $1.36bn, an increase of 33 per cent on the figure for 2005, topped off by record earnings.
The company says that this success has been derived by successfully positioning products that favorably compare to mass national consumer brands.
These brands have been appealing to an increasingly price-conscious US consumers, who have been increasingly switching to lesser known brands for every-day purchases in an effort to make their retail spend go further.
But it seems that P&G is not prepared to accept that kind of competiion. It staunchly protects its brand portfolio, and frequently issues lawsuits against companies perceived to be imitating its brands or trying to piggyback its marketing efforts.
The latest lawsuit follows a string of similar activity this year that has included legal action against McLane over a copy of its NyQuil medicine brand and Vi-Jon Industries over a mouthwash that was said to imitate its Crest Pro-Health mouthwash brand.