The Delhi High Court, in Colgate Palmolive Company & Anr. v. NIXI & Anr., issued comprehensive directions in relation to the misuse of domain names incorporating well-known trademarks for fraudulent commercial activities, including recruitment scams, franchise solicitations, and phishing operations. The Court observed that such conduct had resulted in financial loss to consumers and constituted misuse of trademarks in the digital environment.
The Court held that domain names incorporating well-known marks are protectable and that their registration and use may amount to trademark infringement and passing off. In view thereof, the Court granted “Dynamic+” injunctions restraining the registration and use of infringing domain names, including their variants. Domain name registrars were directed, inter alia, to suspend infringing domains, furnish registrant details to NIXI and the competent authorities within one month, ensure mandatory e-KYC for domain registrations, disable automatic privacy masking, appoint grievance officers, and comply with court orders without delay.
Banks were directed to adhere to RBI guidelines regarding verification of beneficiary account names for online payment transactions, with a view to curbing transfers arising out of fraudulent domain-based schemes. Registrars that fail to comply risk losing safe-harbour protection under the Information Technology Act, and are required to furnish data to authorities within 72 hours upon request.
These directions constitute systemic measures intended to strengthen consumer protection and mitigate online trademark abuse.
Source: Colgate Palmolive Company & Anr. V. NIXI & Anr. [CS(COMM)193/2019]