The landmark decision by the Delhi High Court places a significant responsibility on e-commerce platforms to actively safeguard intellectual property rights and to prevent their platforms from becoming conduits for counterfeit goods. This case, initiated by Puma SE against IndiaMART InterMESH Ltd., serves as a precedent for how e-commerce platforms must regulate their operations in India.
Justice C Hari Shankar’s ruling is clear that while e-commerce websites are inherently profit-oriented, this does not excuse them from the responsibility of protecting intellectual property rights. The court’s decision focuses on the balance between commercial pursuits and legal obligations, especially in the context of intellectual property rights protection.
The case hinged on the claim by Puma SE that counterfeit goods bearing fake Puma trademarks were being sold on IndiaMART by third-party sellers. These counterfeit goods were displayed alongside genuine products, leading to confusion and potential infringement of Puma’s trademarks.
The court ordered IndiaMART to remove all listings infringing upon Puma’s trademarks and barred the platform from offering any of Puma’s registered trademarks as search options in their drop-down menu. This order is an interim measure, pending the final decision on Puma’s lawsuit against IndiaMART.
This ruling has broader implications for all e-commerce platforms operating in India. It suggests that platforms can no longer claim the ‘safe harbour’ provision under Section 79 of the Information Technology Act if they are found to be enabling the sale of counterfeit products. The judgment emphasizes the need for e-commerce platforms to establish and enforce more stringent measures to verify the authenticity of goods and sellers on their platforms.
This decision reflects an evolving legal landscape in India regarding the responsibilities of online intermediaries and platforms. It underscores the necessity for these platforms to be more vigilant and proactive in their efforts to combat the sale of counterfeit goods, thus protecting the intellectual property rights of legitimate businesses and brands.