In a recent judgment in Modern Mold Plast Pvt. Ltd. vs. Flipkart Internet Pvt. Ltd. & Ors., the Hon’ble Delhi High Court has directed Flipkart to implement its brand gating feature to protect the plaintiff’s trademark “MAHARAJA” from unauthorized use through its platform’s latching-on system.

Background and Key Issues:

1. Trademark Infringement and Passing Off: The plaintiff, Modern Mold Plast Pvt. Ltd., filed a suit against Flipkart and two third-party sellers alleging unauthorized use of its registered trademark “MAHARAJA”. The complaint centered on Flipkart’s “latching-on” feature, which allowed other sellers to list their products under the plaintiff’s listing, misleading customers.
2. Unauthorized Listings: Defendants No. 2 and 3 were found to be selling non-genuine products while using the plaintiff’s trademark in their invoices and listings. These actions caused confusion among consumers, who believed the products were manufactured or endorsed by the plaintiff.

Court’s Findings:

1. Recognition of Prior Use: The Court acknowledged that the plaintiff had been using the “MAHARAJA” trademark since 2009, giving them common law rights as the prior user of the mark.
2. Deceptive Use by Third-Party Sellers: The Court found that Defendants No. 2 and 3 had misused the plaintiff’s trademark to mislead consumers. This constituted passing off and infringement.
3. Misuse of Flipkart’s Platform: The Court held that Flipkart’s latching-on feature was being misused to facilitate sales of unauthentic goods under the plaintiff’s trademark, thereby harming the plaintiff’s brand reputation.

Court’s Directions to Flipkart:

1. Enforcement of Brand Gating: Flipkart is required to implement its brand gating mechanism for the plaintiff’s products. This will ensure that only authorized sellers can sell products under the “MAHARAJA” brand on Flipkart.
   • The plaintiff must provide Flipkart with the relevant Flipkart Serial Numbers (FSNs).
   • Flipkart must ensure that no unauthorized seller is permitted to list under the plaintiff’s FSNs.
   • In case of any uncertainty, Flipkart must confirm with the plaintiff before allowing a new seller.
2. Immediate Response to Complaints: If the plaintiff notices any future unauthorized listings, Flipkart must act immediately to disable the latching-on feature for those listings upon receiving notice.

Outcome:

The Court ruled in favor of the plaintiff and upheld their trademark rights. The directions issued are intended to prevent further misuse of the trademark and protect the plaintiff from unauthorized sellers on Flipkart. The plaintiff did not seek any additional relief and expressed satisfaction with the judgment.

Understanding Brand Gating:

Brand Gating is a system used by e-commerce platforms to restrict the ability to list products under a particular brand only to approved or authorized sellers. It is an important tool to prevent counterfeiting and misuse of registered trademarks. In this case, the Court has mandated Flipkart to apply brand gating for the “MAHARAJA” brand to ensure only genuine, authorized products are sold.

Significance:

This ruling strengthens legal protections for brand owners against trademark misuse on online platforms. It also places a responsibility on e-commerce companies like Flipkart to monitor and control how their platform is used, ensuring consumer protection and brand integrity.