High Court rules the Trademarks Act limited to India's boundary

High Court rules the Trademarks Act limited to India's boundary

Denies interim relief to Tata Sons against the US and UK companies

The Delhi High Court has observed that the Trademarks Act and the Civil Procedure Code operate only within the ambit of India. It denied interim relief to Tata Sons who filed a complaint seeking a permanent injunction against two companies in the US and the UK dealing in crypto-currencies.

The plea contended that the two companies, Hakunamatata Tata Founders and Tata Bonus, engaged in the sale of crypto coins and were using the trademark of Tata Sons that was against the Trademarks Act.

Contesting that the coins could be purchased in India, Tata Sons challenged that Indians could access the two companies' websites and several Indians had joined their telegram group. It added that it had been done 'purposefully' by the two companies.

However, rejecting the argument, Justice C Hari Shankar said that merely because the website and the social media handles of the two companies had visitors and followers from India, it did not imply that they were targeting India.

The court observed, "The crypto-currency of the defendants could be purchased, (using the QR Code and the methodology indicated on their website) by a customer located anywhere in the world. Therefore, it does not indicate any deliberate targeting of the Indian customer base."

Justice Shankar held that the court could not issue directions to the defendants, as they were outside the territorial reach. "The operation of the Trademarks Act and CPC statutorily extend only to the boundaries of India," he said.

"In the case of internet infringements, no doubt, the decision of the court may, at times, operate outside India, however, it is subject to the existence of the necessary connection between the activity of the foreign-seated defendants and India. Moreover, the intent of the defendants to target India must be established," the bench observed.