J&J Wants To Mediate Red Cross Dispute
Make a commentBy Ed Silverman // August 16th, 2007 // 6:13 pm
The health care giant actually sought mediation before filing its controversial lawsuit. So it’s not necessarily accurate to say J&J is suddenly crying uncle. But given that its action against the American Red Cross is generating a lot of heat, it’s not surprising J&J wants to shift the dispute to a private venue instead of an open courtroom.
“Johnson & Johnson is very interested in mediation,” a lawyer for the company told US District Judge Jed Rakoff during a hearing at the federal court in Manhattan, according to a Reuters report. For some reason, the report doesn’t name the attorney or any reaction from the judge. And there was no indication whether mediation will occur now or later, if at all.
To recap, J&J filed the lawsuit to stop the Red Cross from licensing the red cross symbol other businesses that are selling products with the emblem. At issue are conflicting claims about the trademark and a century-old Red Cross charter for commercial usage. J&J worries aloud about opening the floodgates to infringers, while the charity accuses the health care giant of bullying.
J&J has a point, but it comes at a price. In effect, J&J’s legal team has prodded the company into a no-win situation, because the Red Cross, for all its foibles, is viewed positively by many Americans. Drugmakers, on the other hand, aren’t. A recent Pharmalot poll, although not scientific, underscored that sentiment - 57 percent of readers said the lawsuit was a mistake.
Seeking mediation is a smart move. Perhaps J&J’s lawyers are on firm legal ground, and J&J execs are correct to file suit, simply on principle. That would be for a court to decide. But the court of public opinion is speaking loud and clear.