High Court grants interim injunction against online retailer from using L’oreal Trademark

Recently, Delhi High Court passed an interim injunction against an online retailer restraining them from using the name of L’oreal to sell or supply any goods on any website or in any other manner having regard to the L’oreal’s plea alleging counterfeit products having its trademark were being sold/ traded by the online retailer Brand world through the shopping website Shopclues.com.

L’oreal has filed suit for permanent injunction restraining defendants, on account of infringement, passing off, and rendition of accounts against the defendants. Plaintiffs Loreal established in France claimed that they are using the mark “L’oreal” since 1910. It has also been submitted by the counsel for the Plaintiffs that the mark “L’oreal” is a trademark registered in major countries of the world and thus has built up a globally valuable trademark. Hence the plaintiff claimed that they have acquired immense goodwill and reputation by using the said trademark.

As a matter of fact, Plaintiff observed that certain counterfeit products are being sold by the defendants through online selling under their trademark. Plaintiffs submitted that the alleged goods were purchased and sent for verification and it was revealed that they are counterfeit ones. Thus Plaintiffs prayed for an ex-parte ad interim injunction against the defendants.

Justice G. S. Sistani after perusing the plaint and hearing the Plaintiff’s counsel granted an ex-parte ad interim injunction against defendants restraining ‘defendants, their directors, principal officers, partners, agents, representatives, distributors, assigns, stockists from using, manufacturing, marketing, purveying, supplying, selling, soliciting, exporting, displaying, advertising on the online market place through the website www.ShopClues.com, or any other mode with respect to the impugned trademark L’OREAL and L’OREAL formative trademark’ till next date. Summons issued to the defendants through all possible modes.

The Hon’ble High court also stated that on perusing the facts, the balance of convenience is in favor of the Plaintiffs and it is the fit case wherein if the interim injunction is not granted then the Plaintiffs will suffer from irreparable loss.

Thus it will be interesting to note the Court’s final verdict in this case in view of the incredible growth of online selling where the sellers are listed by the online website provider to sell their goods to the buyers at discounted prices, which is a growing concern for the manufacturers which makes it mandatory for them to be more vigilant on the list of sellers dealing with their goods in order to avoid distortion of prices and preventing dealing of counterfeit products under their mark.

About the Author: Mr. Abhijeet Deshmukh, Trademark Attorney at Khurana and Khurana, Advocates and IP Attorneys and can be reached at [email protected]