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2002 Supreme(Del) 125

High Court Of Delhi
MANISH VIJ - Appellant
Versus
INDRA CHUGH - Respondent
Interim Application 3064 of 2000
Decided On : 01/29/2002

Advocates Appeared:
C.M.LAL, Garjatu J., NIL MASON, PRAVIN ANAND, V.P.Singh

The main legal point established in the judgment is that a descriptive word used as a domain name cannot serve as a trade-mark or trade-name unless it has attained a secondary meaning. The judgment also clarified the conditions for showing abusive registration and the evidence required for proving bad faith in domain name registration.

Headnote:

Domain Name - Injunction - Code of Civil Procedure - [Order 39 Rules 1 and 2, Section 151] - [Summary of Acts and Sections: The court discussed the concept of domain names, their registration, and cybersquatting. It also referred to the principles of trademark law and the legal sanctity of domain names. The judgment highlighted the conditions for showing abusive registration and the evidence required for proving bad faith in domain name registration.]

Fact of the Case:

The plaintiffs sought a permanent injunction against the defendants from using a domain name similar to theirs, alleging passing off of business. The plaintiffs claimed to be proprietors of the domain name 'www.kabadibazaar.com' and trade-mark, involved in e-commerce of second-hand goods. The defendants denied the allegations and claimed that the word 'kabadibazaar' is descriptive and commonly used in Hindi language.

Finding of the Court:

The court found that the word 'kabadibazaar' is descriptive and not newly coined by the plaintiffs. It rejected the contention that the word is unique and not descriptive. The court also held that the domain name had not acquired a secondary meaning and that the allegations of abusive registration/cybersquatting were not substantiated. The interim injunction in favor of the plaintiffs was vacated.

Issues: The issues revolved around the proprietary rights of the plaintiffs over the domain name 'www.kabadibazaar.com', the descriptive nature of the word 'kabadibazaar', and the allegations of abusive registration and cybersquatting by the defendants.

Ratio Decidendi: The court emphasized that the word 'kabadibazaar' is descriptive and not newly coined, and it had not acquired a secondary meaning. It also highlighted the conditions for showing abusive registration and the evidence required for proving bad faith in domain name registration.

Final Decision: The court allowed the defendants' application under Order 39 Rule 4 of the Code of Civil Procedure, vacated the interim injunction in favor of the plaintiffs, and dismissed the plaintiffs' application under Order 39 Rules 1 and 2 of the Code of Civil Procedure. No order as to costs was given.

S. K. Agarwal

( 1 ) PLAINTIFFS instituted the suit for permanent injunction restraining the defendants from operating any business, making, selling/transferring, offering for sale, advertising and in any other manner dealing with the goods or services using domain name "www. kabaribazaar. com" or any other combination thereof, as a website on the internet, identical with or descriptively similar to plaintiffs trade name/domain name "www. kabadibazaar. com" as is likely to lead to passing off the business of the defendants as those of plaintiffs. On 24th April, 2000, plaintiffs were granted ex parte injunction on an application under order 39 Rules 1 and 2 read with Section 151 of the Code of Civil Procedure, 1908 (for short code of Civil Procedure ) which is sought to be confirmed and the defendants moved an application, under Order 39 Rule 4 Code of Civil Procedure for revocation of the interim injunction, pleading that the same was obtained by misrepresentation and false statements. This order will dispose of both these applications.

( 2 ) BRIEFLY stated, plaintiffs case is that they are proprietors of the domain name "www. kabadibazaar. com" and trade-mark, in relation to the information website, dealing with second hand goods on the internet. They are involved in the business of e-commerce since April, 1999. They realised the vast potential of second hand goods market, which in the indian context are. not readily consigned to destruction but are usually recycled. Every household deals with the permon celled "kabadiwala", who periodically takes away unwanted goods from the house which may be of some use in other context, like old newspapers, used bottles and broken electronic goods. These goods after necesaary repairs are either sold in the market known for second hand goods or are used for manufacturing other items like paper bags etc. Formal markets for second hand goods are largely periodical and very limited in application and usually beyond the knowledge of vast majority of people. It is pleaded that taking into account that "kabadi" is a person who buys second hand products, and bazaar denotes the place where trading takes place, plaintiffs, adopted this unique combination. They are proprietors of the said website and Are entltled to use the same with all its variations to the exclusion of others.

( 3 ) THE plaintiffs have pleaded about the concept of domain names, their registration etc. They have also explained the working of their website. It is. stated that their website provides a meeting ground for the interested buyers and sellers through e-mail, thereby facilitating negotiations between the parties. They booked the domain name "www. kabadibazaar. com" on 5. 5. 1999 for launching the website. It was launched on 30,9. 1999. It attained instant publicity as Star News discussed launch of the website on 1. 10. 1999 and the programme was relayed eight times in Hindi and English; this website is accessible through some of the well known engines; and it had approximately 4000 members in the limited span of six months and various range of products. The use of a similar domain name is bound to cause confusion amongst the internet users. It is pleaded that before launching of the website by plaintiffs the said domain name was earlier booked by one Mr. Amar Nath, who agreed not to launch the website using this domain name. It is also pleaded that defendants have booked various other domain names like "rajourigardenmarket. com", "karolbaghmarket. com" with the intention of making illegal profits.

( 4 ) DEFENDANTS in their written statement have denied the averments made in the plaint, and have, inter alia, pleaded that plaintiffs obtained ex parte injunction by misrepresentation, mis-statement and concealment of material facts, that defendants have live website working under the domain name "www. kabaribazaar. com" since November, 1999 attracting much more traffic than plaintiffs website. The plaintiffs made an effo





























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