The Delhi High Court has issued a permanent injunction against various domain names and websites that were unlawfully using the ‘CROMA’ trademark owned by Infiniti Retail Limited, a subsidiary of Tata Sons Pvt. Ltd. The decision reinforces the importance of trademark protection and aims to curb consumer deception caused by unauthorized domain usage.
Background of the Case
Infiniti Retail Ltd., a wholly owned subsidiary of Tata Sons Pvt. Ltd., has been operating under the ‘CROMA’ brand since its incorporation in 2005. The company has registered around 130 trademarks, including various ‘CROMA’ formative marks, covering a broad range of consumer electronics, household appliances, and related services. The ‘CROMA’ mark was officially recognized as a ‘well-known mark’ by the Registrar of Trade Marks in February 2020.
The company filed a suit against multiple domain names and websites, including defendant numbers 1, 2, 3, 12, 20, and 21, for trademark infringement and passing off. Infiniti Retail argued that the unauthorized use of the ‘CROMA’ trademark was misleading consumers, diluting brand identity, and causing financial and reputational damage.
Court Proceedings and Key Findings
On July 25, 2022, the Delhi High Court granted an interim injunction in favor of Infiniti Retail Ltd., directing the blocking of infringing domain names. The court observed that these domains were misleading consumers into believing they were associated with ‘CROMA.’
Infiniti Retail filed an application for a summary judgment under Order XIII-A of the Civil Procedure Code (CPC). The court noted that despite being served notices, the defendants failed to file any response, indicating their lack of a valid defense.
Justice Prathiba M. Singh ruled that the infringing domain names deceptively misled consumers and unlawfully infringed upon Infiniti Retail’s trademark rights. The court issued a permanent injunction, preventing the defendants from using the ‘CROMA’ mark in any manner.
Freezing of Bank Accounts and UPI IDs: Financial service providers, including PhonePe, RBL Bank, Airtel Payments Bank, and others, were directed to freeze accounts and UPI IDs associated with fraudulent transactions.
Read Also:- Orissa HC Upholds Mandatory PAN-Aadhaar Linking for Demat Accounts: Dismisses Ex-MP’s Plea
Transfer of Domain Names: Domain Name Registrars, including GoDaddy, were directed to transfer the infringing domain names to Infiniti Retail Ltd. upon payment of transfer and renewal charges.
Permanent Suspension of Mobile Numbers: Telecom service providers such as Vodafone Idea and Reliance Jio were ordered to permanently suspend the mobile numbers linked to the infringing websites.
"The failure of the defendants to contest the suit clearly indicates that they have no real prospect of defending their claim. The infringing domain names not only violate the rights of the plaintiff but also mislead consumers, causing financial and reputational harm," - Justice Prathiba M. Singh
Case title: Infiniti Retail Limited vs. M/S Croma Wholeseller & Ors. (CS (COMM) 490/2022 & I.As.11324/2023, 2872/2024)
