Flowil International Lighting (Holding) v. Digital Gadgets
(2014) 58 PTC 219
In the High Court of Delhi
CS(OS) 1391/2010
Before Justice Rajiv Sahai Endlaw
Decided on March 14, 2014

Relevancy of the case: Petition to prevent the sale of infringed goods from the defendant’s websites

Statutes and Provisions Involved

• The Information Technology Act, 2000 (Section 2(w), 79)

Relevant Facts of the Case

• The plaintiff filed the plea for a permanent injunction against the defendant’s use of their registered trademark for which the defendants took no permission.
• The plaintiff has in the plea proposed to add other defendants that are promoting, selling, exporting, etc., goods with the plaintiff’s trademark.
• The passed-off goods are also being sold on websites globally without obtaining a license.

Prominent Arguments by the Advocates

• The plaintiff’s counsel submits that the defendants were not intermediaries but were engaged in affecting the sale of the infringed goods.
• The defendant’s counsel submits that the defendants only provide a platform for the sale and purchase of goods and are intermediaries. Also, according to the guidelines set, the defendants take down necessary content/goods if there is any objection regarding the same. They also assured that the sale of such goods has stopped on their websites.

Opinion of the Bench

• The court found out that the plaintiff had settled the claim by entering into a settlement agreement with the defendant. This agreement would mean that the plaintiff has waived off their claim.
• The bench believed that if the cause of action has disappeared, then the plaintiff can’t keep the suit alive against the proposed defendants for merely selling those goods.

Final Decision

• Petition dismissed.