The Delhi High Court has granted a permanent injunction against a rogue website that was using L'Oreal's trademark and misleading the public. The Court ruled in favor of L'Oreal SA, a leading French cosmetic brand, and restrained the defendant from further using its mark. Additionally, the court imposed a ₹ 1 Lakh cost on the defendant to be paid within eight weeks.
Justice Mini Pushkarna, in her order, compared the official website of L'Oreal SA, www.loreal.com, with the defendant’s website, www.lorealglobal.in. The judge observed the striking similarities between the two websites, noting that the defendant had replicated essential features such as L'Oreal's logos and website layout.
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"The comparison of the plaintiff's official website www.loreal.com with the defendant's impugned website www.lorealglobal.in shows that the defendant has replicated essential features, including the plaintiff's logos and website layout. The similarity between the two websites is so striking that an average consumer with imperfect recollection would be unable to distinguish between the two. It appears that the intent behind such imitation is to mislead consumers into believing that the defendant's website is affiliated with the plaintiff," stated Justice Pushkarna.
The Court further emphasized that the defendant used email addresses like 'paresh.deshmukh@lorealglobal.in' and 'ashwini.r@lorealglobal.in', showing a deliberate attempt to impersonate L'Oreal's employees. "The defendant's use of these email addresses demonstrates a calculated effort to deceive third parties, such as Nicholas Healthcare Limited, into believing they were transacting with official representatives or employees of L'Oreal," said the judge.
Background of the Case
L'Oreal SA, a global leader in beauty and cosmetics, has been using the trademark 'L'Oreal' since 1900 and sells products in more than 130 countries, including India. The plaintiff revealed that the defendant, whose identity remains unknown, was running a website under the domain name www.lorealglobal.in and impersonating the brand.
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The defendant engaged in fraudulent activities, including attempting to buy products worth ₹ 1 Crore from Nicholas Healthcare Limited. They used fake documents such as a forged GST certificate, fake incorporation certificate, and a fake canceled cheque under L'Oreal India Pvt. Ltd.’s name. L'Oreal claimed that these actions were causing harm to their business and damaging their reputation.
The Court noted that the defendant failed to file a written statement, which led the Court to proceed with a summary judgment. The Court highlighted that L'Oreal’s global sales amounted to 27.99 billion Euros with an operating profit of 5.20 billion Euros, reflecting the brand's strong global presence and goodwill. The Court also noted that the defendant's website was so similar to L'Oreal's official site that it would confuse an average consumer.
In September 2021, the Court had already issued an ex-parte ad-interim injunction, temporarily restraining the defendant from using the impugned website and email addresses. After considering the evidence, the Court concluded that the defendant’s actions amounted to trademark infringement and a deliberate attempt to deceive the public.
The Delhi High Court permanently restrained the defendant from using the trademark 'L'Oreal' or any confusingly similar mark. The Court also ordered the defendant to pay ₹ 1 Lakh to L'Oreal as compensation. The Court further directed NIXI, the domain name registrar, to prevent the registration of any domain name containing the mark 'L'Oreal' under the '.co.in' and '.in' extensions.
