{"id":316437,"date":"2024-03-08T09:30:16","date_gmt":"2024-03-08T04:00:16","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=316437"},"modified":"2024-03-14T14:30:07","modified_gmt":"2024-03-14T09:00:07","slug":"obligation-upon-e-commerce-platforms-to-ensure-that-sellers-complete-details-are-available-dhc-legal-news-scc-times","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2024\/03\/08\/obligation-upon-e-commerce-platforms-to-ensure-that-sellers-complete-details-are-available-dhc-legal-news-scc-times\/","title":{"rendered":"Look-alike products undermine integrity of fair trade; Obligation upon e-commerce platforms to ensure that sellers\u2019 complete details are available: Delhi HC"},"content":{"rendered":"
\n

Delhi High Court:<\/span> The present suit was filed by plaintiff, Abhi Traders for copyright infringement and passing off, and other reliefs including damages against defendants who were advertising, publishing, and offering for sale, the garments, which were a complete copy of plaintiff’s garments and were also misusing the photographs and images in which plaintiff owned rights. Sanjeev Narula, J.<\/span>, held that plaintiff had made out a case for grant of an ex-parte ad-interim<\/span> injunction and it was also in the interest of the consumers that such look-alike products were not permitted to be sold. The Court thus prohibited Defendants 2 to 9, along with any other sellers who were showcasing their products on the Meesho.com platform, from reproducing, copying, publishing, or imitating any designs of plaintiff’s clothing. This injunction also extended to the prohibition against reproducing any images related to plaintiff’s products, including photographs.<\/p>\n

Background<\/p>\n

Plaintiff was a retailer in clothing items for men and women selling it under its mark “IBRANA \"\"<\/a>”. They offered for sale and advertised their goods on various E-Commerce platforms like Flipkart and Defendant 1’s platform ‘www.meesho.com’ (‘Meesho’). The said products were advertised and promoted through photographs over which the copyright of plaintiff subsisted. Defendant 1, Fashnear Technologies (P) Ltd was the company which runs ‘www.meesho.com’. Defendants 2- 9 were alleged to be unlawful and unauthorized operators who used plaintiff’s copyrighted pictures and photographs and sell their own counterfeit goods thereunder on the online platform owned, run, managed, and administered by Defendant 1.<\/p>\n

Plaintiff submitted that it was the sole manufacturer, promoter, marketer, and seller of the products listed under its own copyrighted pictures and therefore the question of genuine reselling or authorized re-selling did not arise. It was also submitted that it did not authorize Defendants 2 to 10 to use any photographs of its products over which they had copyright. The repeated misuse of plaintiffs copyrighted photographs, published on Defendant 1’s platform showed that Defendants 2 to 10 were riding upon the goodwill and reputation of plaintiff and making unauthorized gains.<\/p>\n

Plaintiff submitted that Defendants 2 to 10 were not only replicating plaintiff’s products but were also using identical photographs for marketing purposes and deliberately pricing their goods lower to inflict financial harm on plaintiff. Despite the inferior quality of products of Defendants 2 to 10, their external appearance was remarkably similar to that of plaintiff’s offerings, creating a deceptive semblance of equivalence that misleads consumers.<\/p>\n

Counsel for plaintiff submitted that Defendant 1 was under an obligation to publish contact details of all sellers on its platform under Rule 5(3)(a) of Consumer Protection (E-Commerce) Rules, 2020<\/a> (‘2020 Rules’). Defendant 1 did not provide any contact information on its website during the transaction process. The omission of essential contact information, combined with the failure to respond to legitimate requests for transparency regarding the entities involved in the sale of counterfeit goods, suggested that Defendant 1 was complicit in the activities of Defendants 2 to 9. Such conduct not only contravened the legal obligations incumbent upon e-marketplaces but also implicated Defendant 1 in aiding and abetting other defendants in their infringing activities. Thus, Defendant 1’s operations, were in violation of the regulatory framework established for e-commerce platforms, thereby disqualifying it from availing itself of the specific immunities provided under Section 79(1)<\/a> of the Information Technology Act, 2000<\/a>.<\/p>\n

\"\"<\/a><\/p>\n

Analysis, Law, and Decision<\/p>\n

The Court opined that a prima case<\/span> was established as defendants were egregiously exploiting plaintiff’s product images, listing visuals, and product designs for their financial gain, leveraging plaintiff’s reputation. Such sellers were unequivocally not entitled to replicate plaintiff’s photographs, images, or product designs, thereby harming plaintiff.<\/p>\n

The Court acknowledged the pivotal role of e-commerce platforms in offering new opportunities for small designers and enterprises but opined that it was imperative that these platforms were not exploited to facilitate the imitation of products and the infringement of intellectual property rights. The production of look-alike products, misuse of product images that infringe upon plaintiff’s copyrights undermines the integrity of fair trade and competition, warranting intervention to protect plaintiff’s lawful interests.<\/p>\n

The Court opined that there was also an obligation upon the E-Commerce platform to ensure that complete details of the sellers were available on the platform so that the consumer was aware of the sellers from whom the product was purchased and the entity, who was listing the product. The 2020 Rules, notified on 23-7-2020, imposed an obligation on the e-commerce platform to give the full geographic address, customer care number, rating, and other feedback about the seller for enabling consumers to make informed decision at the pre-purchase stage.<\/p>\n

The Court held that plaintiff had made out a case for grant of an ex-parte ad-interim<\/span> injunction and it was also in the interest of the consumers that such look-alike products were not permitted to be sold. The Court opined that irreparable harm would be caused if injunction was not granted, as on online platforms and marketplaces, it was extremely easy for sellers to proliferate the images and continue to dupe customers.<\/p>\n

The Court thus prohibited Defendants 2 to 9, along with any other sellers who were showcasing their products on the Meesho.com platform, from reproducing, copying, publishing, or imitating any designs of plaintiff’s clothing. This injunction also extended to the prohibition against reproducing any images related to plaintiff’s products, including photographs. The Court directed Defendant 1 to reveal all the available details of the sellers including the address, mobile numbers, email addresses, total sales made by the sellers, GST details, payments made to the sellers since the time listings have been put up.<\/p>\n

The matter would next be listed on 1-8-2024.<\/p>\n

[Abhi Traders v. Fashnear Technolgoies (P) Ltd., 2024 SCC OnLine Del 1604<\/a>, Order dated 29-2-2024<\/span>]<\/p>\n\n

Advocates who appeared in this case :<\/p>\n

For the Plaintiff: Anshuman Upadhyay, Naseem, Apoorva Sharma, Rahul Singh, Sunanda Chowdhury, Advocates<\/p>\n

For the Defendants: Sidharth Chopra, Savni Dutt Endlaw, Vivek Ayyagari, R. Ramya, Sanidhya Meheshwari, Advocates<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

“Irreparable harm will be caused if injunction is not granted, as on online platforms and marketplaces, it is extremely easy for sellers to proliferate the images and continue to dupe customers.”<\/p>\n","protected":false},"author":1,"featured_media":314886,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[66181,2543,56281,66179,3215,38697,66178,61729,57032,31397,51110,66180],"class_list":["post-316437","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-complete-details","tag-Delhi_High_Court","tag-e-commerce-platforms","tag-fair-trade","tag-infringement","tag-integrity","tag-look-alike","tag-meesho","tag-obligation","tag-photographs","tag-products","tag-sellers"],"yoast_head":"\nLook-alike products undermine integrity of fair trade; Obligation upon e-commerce platforms to ensure that sellers\u2019 complete details are available: Delhi HC | SCC Blog<\/title>\n<meta name=\"description\" content=\"Delhi High Court opined that e-commerce platforms were obligated to ensure that sellers\u2019 complete details were available as look-alike products undermine integrity of fair trade.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2024\/03\/08\/obligation-upon-e-commerce-platforms-to-ensure-that-sellers-complete-details-are-available-dhc-legal-news-scc-times\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Look-alike products undermine integrity of fair trade; 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Delhi HC grants injunction to Tibra Collection, a seller on Meesho, against its garments copyright infringement","author":"Simranjeet","date":"October 9, 2023","format":false,"excerpt":"\u201cWhile E-Commerce provide new platforms for small designers and businesses, the same ought not to be misused for the purposes of imitating and producing look alike products thereby violating any intellectual property rights.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"delhi high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/10\/delhi-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/10\/delhi-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/10\/delhi-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/10\/delhi-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":278667,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/11\/21\/delhi-high-court-grants-ex-parte-ad-interim-injunction-to-american-eagle-against-ektarfa-garments-in-a-trademark-and-copyright-infringement-suit\/","url_meta":{"origin":316437,"position":1},"title":"Delhi High Court grants ex-parte ad-interim injunction to American Eagle against Ektarfa Garments in a trademark and copyright infringement suit","author":"Editor","date":"November 21, 2022","format":false,"excerpt":"\u00a0 \u00a0 Delhi High Court: In a case where application was filed under Order 39 Rules 1 and 2 read with Section 51 of the Civil Procedure Code, 1908 (Code) in a trademark and copyright infringement suit, the Single Judge Bench of Jyoti Singh, J. 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Delhi High Court directs Amazon to remove infringing links within 48 hours","author":"Editor","date":"September 13, 2022","format":false,"excerpt":"Delhi High Court: In a suit filed by Hamdard National Foundation (India) (\u2018plaintiff 1') and Hamdard Dawakhana (\u2018plaintiff 2') relating to the product and mark of the Plaintiffs \u2018ROOH AFZA' being sold on defendant's website \u2018Amazon' not belonging to the plaintiff's, Prathiba M Singh J. granted an ad-interim injunction in\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Delhi High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/delhi_high_court.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/delhi_high_court.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/delhi_high_court.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/delhi_high_court.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/delhi_high_court.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":279674,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/12\/15\/delhi-high-court-grants-permanent-injunction-to-lifelong-online-retail-p-ltd-for-its-mark-lifelong-in-a-trade-mark-infringement-suit\/","url_meta":{"origin":316437,"position":3},"title":"Delhi High Court grants permanent injunction to Lifelong Online Retail (P) Ltd for its mark \u2018Lifelong\u2019 in a trade mark infringement suit","author":"Editor","date":"December 15, 2022","format":false,"excerpt":"The Delhi High Court restrained the defendant from dealing in any goods, under the impugned trade mark \u2018Lifelong\u2019 or any other mark as may be identical to or deceptively similar with the plaintiff's (Lifelong Online Retail (P) Ltd.) registered trade mark \u2018Lifelong\u2019, to cause infringement of the plaintiff's trade marks.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Delhi High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/12\/MicrosoftTeams-image-418.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":277907,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/11\/23\/delhi-high-court-grants-permanent-injunction-along-with-2-lakhs-damages-in-favour-of-ebay-in-a-trade-mark-infringement-suit\/","url_meta":{"origin":316437,"position":4},"title":"Delhi High Court grants permanent injunction along with 2 lakhs damages in favour of eBay in a trade mark infringement suit","author":"Editor","date":"November 23, 2022","format":false,"excerpt":"\u00a0 \u00a0 Delhi High Court: In a suit for permanent injunction restraining the defendants from using the mark \u2018Shopibay\u2019 which was similar to the plaintiff's mark \u2018eBay\/EBAY\u2019, the Single Judge Bench of Navin Chawla, J. granted permanent injunction to \u2018eBay\u2019 and held that the adoption of mark by the defendant\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Delhi High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/delhi_high_court.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/delhi_high_court.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/delhi_high_court.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/delhi_high_court.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/delhi_high_court.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":302200,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/09\/23\/delhihc-issues-notice-to-peopleofindia-portal-in-copyright-infringement-suit-by-humansofbombay-legal-news\/","url_meta":{"origin":316437,"position":5},"title":"\u2018Photographs are identical\/imitative\u2019; Delhi High Court issues notice to \u2018People of India\u2019 portal in a copyright infringement suit by \u2018Humans of Bombay\u2019","author":"Simranjeet","date":"September 23, 2023","format":false,"excerpt":"\u201cThe portal, People of India is approaching the very same subjects who are shown on the website, Humans of Bombay, in order to create an imitative platform.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"delhi high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/316437","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=316437"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/316437\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/314886"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=316437"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=316437"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=316437"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}