KOO Coin Reward: Delhi High Court Restrains Websites, Apps From Offering Digital Currencies Under Microblogging Platform's Trademark

The Delhi High Court has restrained three websites and applications from offering digital coins and currencies consisting of the trademark owned by microblogging site 'Koo', observing that the customers were being mislead in believing that there exists a genuine cryptocurrency or digital currency platform associated with the platform.

Justice Pratibha M Singh also directed MEITY to block the websites till the next date of hearing and issue immediate directions to the Internet Service Providers to block the same.

"The said ISPs shall also take immediate steps to block the access to all these three websites," the Court added while passing orders against www.koo.money, www.minekoo.com and Koo Tweet Social Media.

The suit was filed by Bombinate Technologies Private Limited, the parent company of two mobile applications namely, "Vokal" and "Koo".

It was the plaintiff's case that it had launched a scheme or program called "Koo Coin", as a reward program for all its active users which are given to them if they check into the application once a day. It was stated that the said Koo Coins are redeemable coins which can be redeemed by a user upon linking their UPI ID to the application.

The domain name www.kooapp.com was registered in favour of the Plaintiff since October, 2019 and was used to promote the Koo micro blogging platform.

The Court was of the view that the websites and applications of the defendants showed that they were vague and were indulging in misuse of Koo's trademark.

"Some of the users who have given their comments and reviews on the Google Play Store have stated that this application appears to be fake and, although the users have started mining, the coins are not increasing or decreasing. Thus, the users are of the opinion that the entire application itself does not seem to be genuine," the Court noted.

The Court also added that the defendants were "consciously misleading customers" and that a connection was being sought to be established with the microblogging site by using the name and similar bird device marks.

"At present, it is clear that there are a large number of internet users who may be trying to access the Defendants' platforms on the ground that the Defendants are somehow connected to the Plaintiff," the Court said.

It added "….the three Defendants, along with unknown people, may be involved in fraudulent transactions, and collection of money from innocent users under the garb of offering digital currencies. The entire operation of the website and the services, appears to be vague, since the details of the persons who have registered these domain names are not available and there is large scale misuse of the Plaintiff's mark. Therefore, the said Defendants deserve to be injuncted on an urgent basis."

The matter will now be heard on October 6.

Case Title: BOMBINATE TECHNOLOGIES PRIVATE LIMITED v. KOO COIN AND OTHERS

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