The Trademarks Act and the Civil Procedure Code operate only within the boundaries of India, the Delhi High Court observed while denying interim relief to TATA sons who had filed a plaint seeking a permanent injunction against two companies in the US and UK dealing in cryptocurrencies.
Case of the Plaintiff
The plaint 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 which went against the Trademarks Act. Justice C Hari Shankar however did not hold that the two companies have any physical presence in India nor is there any connection whatsoever between the two companies in India.
Case of the Defendant
Counsel of the Respondent, TATA sons, had contended that these coins can be purchased in India, their website could be accessed by Indians and even their telegram group has several Indians joined in it. It was further added that there was “purposeful” “availment” by the two companies of the jurisdiction of the Delhi High Court since they had made their cryptocurrency available for purchase to the people of Delhi and India.
Observation of the Court
The Court however rejected the argument saying that the mere fact that the website of the two companies had visitors from India or because their social media handles had followers from India does not mean that they were, in particular, targeting India.
“No conscious targeting of India therefore exists. Apparently, the defendants “crypto” currency could be purchased, using the QR Code and the methodology indicated on the defendant's website by a customer located anywhere in the world. This factor, therefore, too cannot indicate any conscious targeting of the Indian customer base by the defendants”, the Court observed.
Justice Shankar held that he is of the prima facie view that the Court cannot issue directions to the defendants since they are outside the territorial reach. The Court however directed that since it is only his prima facie view, the plaint be now registered as a suit and summons issued. The defendants were given time till December 21 to respond.
“The operation of the Trademarks Act and CPC statutorily extend only to the boundaries of India. In the case of internet infringements, no doubt, the decision of the Court may, at times, operate outside India, That, too, however, would be subject to the existence of the necessary connection between the activity of the foreign-seated defendants and India. More specifically, the intent of the defendants, to target India, must be established”, the Bench observed further.
Case Details
Before: Delhi High Court
Case Title: TATA Sons Private Limited v. Hakunamatata Tata Founders
Coram: Hon’ble Mr. Justice Hari Shankar
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