Gurugram Commercial Court Awards ₹55 Lakh to Microsoft in Trademark Infringement Case

Introduction

The present suit was filed in a commercial court in Gurugram wherein Microsoft Corporation and its Indian subsidiary, Microsoft Corporation India Private Limited (Plaintiffs) sued Retnec Solutions Private Limited and several other Defendants for trademark infringement, passing off, unfair trade practices, and dilution of their well-known trademarks. The Plaintiffs sought injunctive relief, damages, and an account of profits earned by the Defendants through illegal activities.

Facts

The Plaintiffs alleged that the Defendants were engaged in providing illegal technical support services by impersonating Microsoft personnel or “Microsoft Certified Technicians.” The Defendants used Microsoft’s trademarks to deceive customers into believing they were affiliated with Microsoft, thereby extracting money for fake technical support services. The Plaintiffs claimed that the Defendants’ actions caused significant harm to their reputation and goodwill. The Defendants operated call centres in India and collaborated with entities in the U.S. to carry out these fraudulent activities. The Plaintiffs also provided evidence from their complaint portal, which received over 700,000 complaints globally, including against the Defendants.

Issues

1. Whether the Plaintiffs are the registered proprietors of the trademarks in question.
2. Whether the Defendants infringed the Plaintiffs’ trademarks and engaged in passing off.
3. Whether the Plaintiffs are entitled to injunctive relief, damages, and an account of profits.
4. Whether the suit was maintainable and if the Court had jurisdiction.

Plaintiff’s Arguments

The Plaintiffs argued that they are the lawful proprietors of the “MICROSOFT” trademark, which is recognized as a well-known mark under Indian law. They claimed that the Defendants unlawfully used their trademarks to deceive customers, causing financial and reputational harm. The Plaintiffs provided extensive evidence, including complaints from victims, police investigations, and digital evidence seized from the Defendants’ premises, to prove the Defendants’ involvement in fraudulent activities.

Defendant’s Arguments

The Defendants, particularly Defendants no.7 and 8, denied all allegations, claiming they had no connection with the Plaintiffs or the other Defendants. They argued that the suit was based on false and frivolous allegations and that the Court lacked jurisdiction. They also contended that the Plaintiffs failed to prove their case and that the evidence presented was fabricated.

Analysis of the Court

The Court found that the Plaintiffs successfully proved their ownership of the “MICROSOFT” trademark and its status as a well-known mark. The Court also accepted the Plaintiffs’ evidence, including the complaint portal data, police investigations, and digital evidence, which showed that the Defendants were involved in fraudulent activities by impersonating Microsoft personnel. The Court rejected the Defendants’ arguments, noting that they failed to provide any evidence to counter the Plaintiffs’ claims.

Judgment

The Court ruled in favour of the Plaintiffs, granting the following reliefs:

1. A permanent injunction restraining the Defendants from using Microsoft’s trademarks or engaging in any activities that infringe on the Plaintiffs’ rights.
2. An order for the Defendants to deliver up for destruction all materials containing Microsoft’s trademarks.
3. Damages of ₹50 lakhs against Defendants no.1 to 3 and ₹5 lakhs against Defendants no.7 and 8, along with punitive damages.
4. Legal costs awarded to the Plaintiffs.

Conclusion

This case highlights the importance of protecting well-known trademarks from infringement and fraudulent activities. The Court’s decision reinforces the legal framework for safeguarding intellectual property rights in India. By awarding significant damages and injunctive relief, the Court sent a strong message against the misuse of trademarks and the exploitation of consumers through fraudulent practices.