The case arose from an interim injunction granted in a suit filed by PUMA alleging trademark infringement, passing off, and inducement of counterfeiting on the IndiaMART platform<\/a>. PUMA<\/a> claimed that unauthorised sellers were listing counterfeit goods using its registered trademarks through drop-down options made available by IndiaMART at the time of seller registration. Puma argued that providing such facilities amounts to infringement on IndiaMart\u2019s behalf as such an activity fell outside the scope of the exception available to intermediaries.<\/p>\n In the proceedings before the Single Judge, PUMA sought a temporary and permanent injunction restraining IndiaMART from using or offering the PUMA mark as a keyword, brand suggestion, or search term, and from facilitating the sale of goods bearing its registered trademarks without authorisation.<\/p>\n The Single Judge granted interim relief in favour of PUMA. The Judge stated that:<\/p>\n Based on the afore-mentioned, The Single Judge restrained IndiaMART from using the trademark PUMA in its drop-down menu and directed it to remove all listings infringing PUMA\u2019s rights.<\/p>\n IndiaMART challenged the injunction, contending that it functions as a neutral intermediary offering listing services, not as an e-commerce operator. It argued that the drop-down options were only a categorisation feature to aid sellers, and not a form of trademark use. IndiaMART further claimed that it had instituted a takedown mechanism and did not profit from the use of the trademark.<\/p>\n The Division Bench examined whether such drop-down functionality constituted use of a trademark as understood under the Trade Marks Act, and whether IndiaMART was entitled to the protection under Section 79 of the IT Act.<\/p>\n The Division Bench on Trademark Infringement observed that:<\/p>\n On the issue of intermediary liability, the Court held:<\/p>\n The Division Bench set aside the order restraining IndiaMART from including the PUMA trademark in its seller registration drop-down menu. However, it sustained the direction that IndiaMART must promptly remove all infringing listings upon receiving notice and follow effective due diligence mechanisms.<\/p>\nInjunction for Puma<\/h5>\n
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IndiaMart\u2019s Appeal<\/h5>\n
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Intermediary Liability<\/h5>\n
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Final Decision<\/h5>\n