Potential Of Misleading Unwary Customers By False Claims Of Affiliation: Delhi High Court Grants Interim Injunction In News Eighteen Group Trademark Dispute

The Delhi High Court has issued an ex-parte ad-interim injunction order in favor of E-Eighteen.com Ltd, a subsidiary of the Network18 group, in a trademark dispute suit.

Justice Sanjeev Narula presiding over the case, observed, “Defendants No. 1 to 21 are unauthorisedly using the Plaintiff's registered mark “moneycontrol” and other formative trademarks, on the pretext of providing financial investment services, in an attempt to mislead and confuse the public regarding the source of these services. Such activities of Defendants No. 1 to 21 have the potential of misleading unwary customers, creating confusion and defrauding the public by making false claims of affiliation with the Plaintiff. The documents on record prima facie demonstrate that Defendants No. 1 to 21 are infringing the Plaintiff's registered “moneycontrol” trademarks.”

The suit pertained to the unauthorized use of the trademark "MONEYCONTROL" by multiple defendants, who falsely claimed affiliation with the plaintiff and offered financial investment tips.

E-Eighteen.com Ltd, operating under the trademark "MONEYCONTROL," is a renowned financial news and information services company. It provides its services through its website, mobile applications, and social media channels, garnering significant consumer traction with an average monthly visitor count of approximately 59.01 million between April to December 2023.

The plaintiff holds registered trademarks for "MONEYCONTROL" and its variations in relation to financial affairs and digital platforms.

The dispute arose when the plaintiff received complaints regarding unsolicited messages allegedly sent by the defendants, who falsely portrayed themselves as employees of the plaintiff. These defendants invited members of the public to join WhatsApp groups offering stock market trading tips, claiming affiliation with the plaintiff and other financial institutions. Additionally, they promised extravagant returns and launched initiatives such as the 'CINV INDIA No.1' mutual fund.

The Court opined, “In view of the above, the Court is satisfied that the Plaintiff has made out a prima facie case in its favour and in case an ex-parte ad-interim injunction is not granted, the Plaintiff will suffer irreparable loss. Balance of convenience also lies in favour of Plaintiff and against the Defendants No. 1 to 21.”

Therefore, until the next hearing, the Court has ordered the Defendants No. 1 to 21, and any other individuals acting on their behalf, to refrain from using the Plaintiffs' trademarks "MONEYCONTROL," "MONEYCONTROL+," "MONEYCONTROL PLUS," "moneycontrol.com," other related marks, or any deceptively similar mark that could result in trademark infringement or passing off.

Furthermore, the Court dircted Defendant No. 22, WhatsApp LLC, to block the WhatsApp accounts associated with 19 specified phone numbers and provide the Basic Subscriber Information and payment details of these accounts in a sealed cover.

Further, the Court instructed the Defendants No. 23 to temporarily block the mobile numbers specified and submit the details of the respective persons to whom these numbers are registered, along with KYC documents, in a sealed cover. Similar directions are given to Defendants No. 24, 25, and 26 for the specified mobile numbers.

"It is clarified that the directions contained in Paragraph Nos. 23 to 27 shall be implemented after 10 days from the date of this order, during which the Plaintiff shall serve summons on Defenadants No. 1 to 21 by all permissible modes, including over WhatsApp and SMS, returnable on the next date of hearing," the Court instructed while adjourning the matter.

The case is scheduled for listing on 26th September 2024.

Case Title: E-EIGHTEEN.COM LTD vs KRISHNAA @ JAGTAR SINGH & ORS

Citation: 2024 LiveLaw (Del) 559

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