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2022 Supreme(Del) 1513

IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, J.
Government E Marketplace - Appellant
Versus
Unilex Consultants & Ors. - Respondents
CS (Comm) 205 of 2020, CCP(O) 25 of 2020 and I. As. 4967 of 2020, 4753-54 of 2021
Decided On : 18-04-2022

Advocates appeared:
Mr. Shailendra Sharma, Advocate, for the Appellant; Mr. Rajeev K. Virmani, Senior Advocate, Amicus Curiae with Mr. Mohit Dang and Ms. Niharika, Advocates, for the Respondent.

Nominative fair use and Section 30 of the Trademarks Act, 1999 were central to the judgment, allowing the use of the 'GeM' mark for informational purposes without creating misrepresentation.

Headnote:

Trademark Infringement - GeM - Section 30 of the Trademarks Act, 1999 - The court decreed a permanent injunction against certain defendants from using the mark 'GeM' or the 'GeM' logo in a manner that creates confusion or deception. The court also directed the suspension/locking of objectionable domain names and URL extensions. The judgment highlighted the legal principle of nominative fair use and emphasized that the use of the term 'GeM' for informational purposes, without creating misrepresentation, is permissible under Section 30 of the Trademarks Act, 1999.

Fact of the Case:

The Government E Marketplace (GeM) filed a suit against multiple parties for using the term 'GeM' in domain names and URLs, misrepresenting their association with GeM and impacting GeM's brand equity and goodwill. The court passed decrees against several defendants, directing the suspension/locking of objectionable domain names and URL extensions.

Finding of the Court:

The court found that while providing services related to GeM is permissible, misrepresenting affiliation with GeM is contrary to law. The court decreed a permanent injunction against certain defendants and directed the suspension/locking of objectionable domain names and URL extensions.

Issues: The main issue was the unauthorized use of the 'GeM' mark and logo by various parties, leading to misrepresentation and potential confusion among the public.

Ratio Decidendi: The court emphasized the legal principle of nominative fair use and highlighted Section 30 of the Trademarks Act, 1999, which allows the use of a registered trademark for informational purposes without creating misrepresentation.

Final Decision: The court decreed a permanent injunction against certain defendants from using the mark 'GeM' or the 'GeM' logo in a manner that creates confusion or deception. The court also directed the suspension/locking of objectionable domain names and URL extensions.

ORDER

Prathiba M. Singh, J. (Oral). - This hearing has been done through hybrid mode.

CS (COMM) 205/2020 & I.As. 4967/2020, 4753-54/2021

2. The present suit has been filed by the Plaintiff - The Government E Marketplace (hereinafter 'GeM'), which is a National Public Procurement portal and end to end online marketplace from where both Central and State Government Ministries /Departments, CPSUs and SPSUs effect the procurement of goods and services. The mark used by the Plaintiff is 'GeM' along with the logo, which is depicted below:

3. The case of the Plaintiff in the present suit is that there are several parties, who are either registering ' GeM in respect of procurement of goods and services as a domain name or using the term ' GeM as a URL extension of their usual websites. Some of the parties are providing services to enable businesses to register on the 'GeM portal. Therefore, the Plaintiff is aggrieved by the fact that the Defendants seemed to be claiming to the public at large, that they are associated with the Plaintiff, thereby misrepresenting their status qua the Plaintiff and also adversely impacting the Plaintiff's brand equity and goodwill. In the present case, the following URLs have been impugned:

    1. https: //www. unilexconsultants. com/re gistrations/GEM- Registration/

    2. https://charteredmunshi.com/gem-registration

    3. https://complykart.com/service/GEM-Registration

    4. https://www.digitalsanjay.com/gem-registration-govemment-e- marketplace/

    5. https://gemgov.in/

    6. http: //www.legalbrothers. in/service/gem-re gistration/

    7. http: //www. maanof. co. in/gem-registration. html

    8. https://prospectdigital.in/gem-government-e-marketplace- registration-consultant/

    9. https://www.e-startupindia.com/gem-registration.html

    10. https://registrationseva.com/gem-registration-in-india/

    11. https://www.legalsalaah.com/gem-registration.html

    12. https://gem-registration.org/

    13. https: //apkpure. com/

    14. https://www.ezzus.com/services/gems-portal-registration

    4. In the present suit, various persons who are using the objectionable domain names/URL extensions have been impleaded as Defendant Nos.1 to 11. Defendant Nos.12 to 14 are registered by John Does, whose whereabouts are not known. Defendant No.15 is the Ministry of Electronics and Information Technology (hereinafter 'MEITY'). Defendant Nos.16 to 18 are the Registrars of various domain names/URLs, wherein the objectionable term 'GeM' has been used. Defendant No.19 is a company where Defendant No.2 is a shareholder and director. Various orders have been passed from time to time in this matter. A brief background of the decrees passed against various Defendants is captured hereinbelow.

    5. Initially, vide order dated 1st July, 2020, an ad interim injunction was passed in this matter, directing suspension of the impugned domain names in the following terms:

      '9. I am, for the moment, persuaded by the arguments advanced by Mr. Sharma that if interim relief, as sought for, is not granted, it would jeopardise not only the interest of the plaintiff, but of the users at large, and thus, impact, inter alia, public interest as well.

      XXX

      11. Accordingly, till the next date of hearing, the Registrars of the domain names concerning defendant Nos.1 to 14 shall suspend the domain names of defendant Nos. 1 to 14.

      11.1 The Registrars of domain names, who have been arrayed as parties, are shown as defendant Nos.l6 to 18 in the memo of parties.

      11.2 Defendant No. 16 to 18 will comply the directions issued hereinabove, immediately, upon receipt of a copy of the order passed today. '

      6. Thereafter, on 17th July, 2020, vide two applications being filed on behalf Defendant Nos.9 & 10, the said Defendants agreed not to include the URL extension 'gem.registration.html' or any other deceptively similar URL extension, as part of their domain names. The said order reads as under:

        '3.1 Furthermore, learned counsel says that he is instructed to make a statement on behalf of his clients i.e. defendant nos. 9 and 10 that they would

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