E-Commerce Platforms Obliged To Provide Complete Details Of Sellers, Can't Be Exploited To Facilitate IPR Infringement: Delhi High Court

The Delhi High Court has observed that there is an obligation on the E-Commerce platforms to ensure that complete details of the sellers are available on their site so that consumers are aware of the sellers from whom the product has been purchased, as well as the entity who is listing the product.

“The Consumer Protection (E- Commerce) Rules, 2020, notified on 23rd July, 2020, imposes an obligation as per section 5, 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,” Justice Sanjeev Narula said.

While acknowledging the pivotal role of e-commerce platforms in offering new opportunities for small designers and enterprises, the court said that it is imperative that such platforms are not exploited to facilitate the imitation of products and the infringement of intellectual property rights.

The court made the observations while dealing with a suit filed by a retailer selling clothing items, Abhi Traders, on the e-commerce platform Meesho.com.

The suit was filed against the e-commerce platform and 8 alleged “unlawful and unauthorized operators” who were offering for sale garments by misusing its photographs and images.

The suit was also filed against unknown identities (John Doe) that may either be one or various unlawful parties who were using Abhi Trader's product images to sell various products.

Passing a John Doe order in favour of the plaintiff retailer, the court observed that the defendants were “egregiously exploiting” Abhi Trader's product images, listing visuals, and product designs for their financial gain, thereby leveraging the retailer's reputation.

“Under these circumstances and considering the complete imitation, which has been indulged by Defendant Nos.2 to 9 and other unknown Defendants, Plaintiff has made out a case for grant of an ex-parte ad interim Injunction,” the court said.

Justice Narula restrained the 8 known defendants, “along with any other sellers” who were showcasing their products on the Meesho.com platform, from reproducing, copying, publishing, or imitating any designs of the plaintiff's clothing.

“This injunction also extends to the prohibition against reproducing any images related to the Plaintiff's products, including photographs,” the court said.

It further restrained the defendants from duplicating any of the plaintiff's designs or images belonging to it, concerning its clothing line.

Furthermore, the court directed Meesho.com to reveal all the available details of the sellers in question, including the address, mobile numbers, email addresses, total sales made by the sellers, GST details, payments made to them since the time listings had been put up.

“The Plaintiff shall give a complete list of infringing URLs to counsel for Defendant No.1 within seven working days in order to enable Defendant No.1 to take down the said listings. The said taking down shall be carried out within 72 hours,” the court said.

It further directed that Meesho.com must take “definitive action” to ensure that the geographic address of all sellers is clearly displayed in the invoice published on its platform.

“This would enhance transparency and accountability among sellers utilizing the platform, facilitating easier resolution of any disputes or inquiries related to copyright or trademark infringement, and ensuring compliance with legal and regulatory requirements,” the court said.

Counsel for Plaintiff: Mr. Anshuman Upadhyay, Mr. Naseem, Mr. Apoorva Sharma, Mr. Rahul Singh and Ms. Sunanda Chowdhury, Advocates

Counsel for Defendants: Mr. Sidharth Chopra, Ms. Savni Dutt Endlaw, Mr. Vivek Ayyagari, Ms. R. Ramya and Mr. Sanidhya Meheshwari, Advocates for D-1

Title: ABHI TRADERS v. FASHNEAR TECHNOLOGIES PRIVATE LIMITED & ORS.

Citation: 2024 LiveLaw (Del) 267

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