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Trademark Infringement and Territorial Jurisdiction

Passive Websites and Trademark Applications Do Not Establish Territorial Jurisdiction: Delhi High Court in Vikrant Chemico Case - 2025-08-20

Subject : Civil Law - Intellectual Property

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Passive Websites and Trademark Applications Do Not Establish Territorial Jurisdiction: Delhi High Court in Vikrant Chemico Case

Jurisdictional Limits: Delhi HC Rejects Trademark Suit Over 'Doctor Brand' Disputes

In a significant ruling addressing the intersection of digital footprints and territorial jurisdiction, the High Court of Delhi has returned a long-standing trademark infringement suit filed by Vikrant Chemico Industries Pvt. Ltd. against Shri Gopal Engineering and Chemical Works Pvt. Ltd. and others. Justice Amit Bansal, presiding over the matter, concluded that the plaintiff failed to establish that the cause of action arose within the court’s jurisdiction, while also finding no merit in the underlying claims of trademark and copyright infringement.

A Family Feud Over Cleaners

The dispute stems from a complex history involving the Gupta family, who split their business interests across various entities over several decades. The plaintiff, Vikrant Chemico Industries , alleged that the defendants’ use of the marks ‘DOCTOR HAZEL’S BRAND PHENYLE’ and ‘CHEMIST BRAND GERM TROLL’ infringed upon their registered marks ‘DOCTOR BRAND PHENYLE’ and ‘DOCTOR BRAND GERM TROLL’. The conflict, originating from a family business split, escalated when the plaintiff claimed that the defendants were riding on their established reputation.

The Jurisdiction Battle

A central point of contention was whether the Delhi High Court possessed the territorial jurisdiction to hear the case, given that both parties operated from Kanpur, Uttar Pradesh. The plaintiff attempted to invoke jurisdiction under Section 20(c) of the Code of Civil Procedure ( CPC ), arguing that the defendants' products were available on a "passive" website, listed on IndiaMart, and that trademark applications had been filed in Delhi.

The Court remained unimpressed. Relying on established precedents, including * Banyan Tree Holding v. A. Murali Krishna Reddy *, the Court held that a passive website, which does not facilitate e-commerce or target a specific forum, cannot be used to manufacture jurisdiction. Justice Bansal noted, "a mere hosting of a website which can be accessible from anyone from within the jurisdiction of the court is not sufficient."

Merits of the Infringement Claims

Despite concluding that the suit should be returned due to lack of jurisdiction, the Court proceeded to adjudicate the merits under Order XIV Rule 2 of the CPC . The Court found that the term ‘DOCTOR’ was essentially generic in the disinfectants and cleaning industry. Citing the "anti-dissection rule" and the principle that a composite trademark must be viewed in its entirety, the Court observed that the defendant’s mark ‘DOCTOR HAZEL’S’ was clearly distinguishable.

The Court also highlighted that the plaintiff had failed to prove its case regarding "passing off," noting that the packaging used by the defendants had been in circulation for years and was visually and stylistically distinct from that of the plaintiff.

Key Observations

Highlighting the rationale behind the verdict, the Court provided several key observations:

> "The Plaintiff cannot be permitted to monopolise the term ‘DOCTOR’. This position is further substantiated by the fact that the defendant no.1 obtained registration for the word mark ‘DOCTOR HAZEL’S’ wherein a condition was imposed by the Trade Marks Registry on the defendant no.1 to disclaim the word ‘DOCTOR’."

> "Insofar as the case set up by the plaintiff with regard to trademark infringement is concerned, in light of Section 28 (3) of the Trade Marks Act, 1999 no infringement action can lie against the defendants in view of the registration obtained by the defendants."

> "It is well settled that a composite trademark or label trademark is not required to be dissected to determine whether there is any deceptive similarity with another trademark."

The Final Verdict

The Court’s decision emphasizes that legal action cannot be predicated on generic descriptive terms, nor can jurisdiction be forum-shopped via third-party digital portals or passive web presence. Consequently, the suit was returned to the plaintiff for want of territorial jurisdiction, and the defendants were vindicated against the claims of infringement and passing off. This case serves as a crucial reminder to litigants regarding the necessity of concrete evidence when pleading jurisdiction in intellectual property disputes.

territorial jurisdiction - generic trademark - anti-dissection rule - passing off - passive website

#TrademarkLaw #IntellectualProperty

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