Flipkart's 'Latching-On' Feature Can't Be Used To Sell Counterfeit Products Or Mislead Gullible Public: Delhi High Court
The Delhi High Court has observed that the feature of latching-on offered by e-commerce platform Flipkart cannot be used to sell counterfeit products or to mislead the gullible public into purchasing products as emanating from a particular source when they do not do so.
Latching on is the feature whereby an e-commerce platform permits third party sellers to place a listing under an already listed product on the website. 'More sellers' option on a product's page allows a user to see other traders of the same product.
Justice Mini Pushkarna was dealing with a copyright and trademark infringement suit filed by a furniture selling brand “Maharaja” against Flipkart and two others.
It was the entity's case that it has many listings on Flipkart but due to the latching-on feature of the e-commerce platform, other sellers had latched-on to its listings.
It was submitted that on account of the said latching-on feature offered by Flipkart, other sellers, who were not selling the genuine “MAHARAJA” products, had latched-on to the listings of the plaintiff.
The court observed that the sale of the products by the two individual defendants by passing off their products as those emanating from “Maharaja” brand on Flipkart cannot be allowed.
“The feature of latching-on cannot be used to either sell counterfeit products, or to mislead the gullible public into purchasing products, as emanating from a particular source, when they do not so originate from the said source,” the court said.
The court observed that Flipkart ought to extend its “brand gating” feature, as per the Flipkart Policies, to the listings of the plaintiff furniture brand.
“Accordingly, it is directed that the plaintiffs shall provide their Flipkart Serial Nos. (FSNs) to learned counsel appearing for defendant no.1, i.e., Flipkart. Upon receipt of the FSNs from the plaintiffs, the defendant no.1, i.e., Flipkart, would take steps to not permit any latching-on of unauthorized sellers on the plaintiffs‟ listings,” the court said.
It added that whenever any seller seeks to sell Maharaja's products on Flipkart using the latching-on feature, the e-commerce platform would examine the matter at its own level and in case of any ambiguity, it would be free to seek a confirmation from the furniture brand, in case they want the said products to be sold.
“It is further directed that the said position shall enure in respect of all the sellers, who may seek to latch on to the plaintiffs‟ listing. If any latching-on is noticed by the plaintiffs, Flipkart shall be immediately notified,” the court said while disposing of the suit.
Title: MODERN MOLD PLAST PVT. LTD. & ANR. v. FLIPKART INTERNET PT. LTD. & ORS.