Delhi HC Grants Relief to Snapdeal by Issuing Order Against 50 Rogue Websites for Infringing its Trademark

The Delhi High Court (“Delhi HC”) granted injunction order in favour of Snapdeal Private Limited (“Snapdeal”). 

It restrains fifty rogue websites (“defendants”) from carrying on activities under the trademark of Snapdeal or under any other trademark which is deceptively similar to that of Snapdeal. 

In the present case, the defendants offered fraudulent prize schemes, lotteries and lucky draws in a manner which tend to portray that they either emanated from Snapdeal or were connected with it. 

So, such illegal activities were ultimately degrading the goodwill of Snapdeal in the eyes of the public at large.

Facts of the case

• Snapdeal Private Limited was incorporated in the year 2008. The Company launched its ecommerce website in February 2010 i.e. www.snapdeal.com. 
• The said website is a virtual marketplace which enables the buyers and the sellers to conduct their online business.
• Snapdeal’s grievance was that the defendants were inter alia degrading its goodwill and infringing its registered trademark.  
• Fraudulent prize schemes, lotteries and luck draws were offered in a manner which tends to portray that they either emanate from Snapdeal or were connected with it.
• Snapdeal was concerned that the fifty rogue websites were not only damaging its commercial and statutory interests, but would also end up defrauding gullible customers by having them erroneously believe that they were connected to the plaintiff. 
• Snapdeal also arrayed Department of Telecommunications (DoT), Ministry of Electronics and Information Technology, and National Internet Exchange of India as parties, so that orders passed by the High Court could be efficaciously enforced.
• Snapdeal therefore, prayed for the necessary injunction orders against the fifty rogue websites. 

Order of the High Court

The Delhi High Court observed that Snapdeal not only establishes  a prima-facie case but also holds the balance of convenience in its favor. 

If such fraudulent schemes are allowed, it will not only cause irreparable damage to the Snapdeal brand but also jeopardies the interest of the public at large.

The Delhi HC pointed out  that the illegal action of the fifty rogue websites can cause delusion in the minds of the public at large. 

It can result in giving them a false impression  that such fraudulent prize schemes, lotteries and lucky draws either emanated from Snapdeal or that Snapdeal is, in some way, connected with them. 

The relevant excerpts from the order dated July 20, 2020, passed by Justice Rajiv Shakdher, are as under:

“…9. According to me, the plaintiff has, no doubt, been able to set up a prima facie case in its favour. The balance of convenience is also in favour of the plaintiff inasmuch as continuation of such fraudulent prize schemes, lotteries and lucky draws have the ability to affect a large number of persons who would be deluded into believing that the fraudulent prize schemes, lotteries and lucky draws either emanate from the plaintiff or the plaintiff is, in some way, connected with them. 

10. Therefore, in my view, continuation of such like schemes would jeopardies not only the plaintiff’s interest but also of the public at large.

13. Accordingly, defendant nos. 1 to 50 are injuncted from carrying on their activities either under the plaintiff’s trademark or any other trademark which is deceptively similar to the plaintiff’s trademark.

13.1. Furthermore, defendant nos. 51 to 60, who are the domain registrars, are directed to suspend/block the domain names of those defendants which are registered with them….” 

The Court considered the enormity of damage caused by the fifty rogue websites and granted liberty to Snapdeal for approaching the Court again to array any other rouge website(s) that carry on similar activities as defendants, as and when the same comes to Snapdeal’s notice.

The matter will come up for next hearing on September 04, 2020.