Inter Ikea Systems Bv vs John Doe And Others on 12 March, 2024

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Delhi High Court - Orders

Inter Ikea Systems Bv vs John Doe And Others on 12 March, 2024

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* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ CS(COMM) 205/2024
INTER IKEA SYSTEMS BV ..... Plaintiff
Through: Ms. Tanya Varma, Ms. Aiswarya
Debadarshini, Mr. Rohan Krishna
Seth, Mr. Srinivas Venkat Advocates.

versus

JOHN DOE AND OTHERS ..... Defendants
Through: Ms. Nidhi Raman (CGSC), Mr. Zubin
Singh, Mr. Rishav Dubey (GP),
Advocates for D-5,6.

CORAM:
HON'BLE MR. JUSTICE SANJEEV NARULA
ORDER

% 12.03.2024 I.A. 5462/2024 (under Section 151 of the Code of Civil Procedure, 1908 seeking exemption from serving the Defendant no. 1 & 2) d

1. The Plaintiff alleges that Defendants No. 1 and 2 are perpetrating fraud on the general public by creating a false association with the Plaintiff, resulting in grave financial losses to the public. Considering the nature of controversy involved in the present suit as well as the peculiar facts and circumstances of the case, exemption from effecting advance service on Defendants No. 1 and 2 is allowed.

2. Application is disposed of.

I.A. 5459/2024 (under Section 12A of the Commercial Courts Act, 2015 read with Section 151 of Code of Civil Procedure, 1908) CS(COMM) 205/2024 Page 1 of 16 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/03/2024 at 21:33:31

3. As the present suit contemplates urgent interim relief, in light of the judgment of Supreme Court in Yamini Manohar v. T.K.D. Krithi,1 exemption from attempting pre-institution mediation is granted.

4. Disposed of.

I.A. 5460/2024 (under Order XI Rule 1(4) (as amended by the Commercial Courts Act, 2015) read with Section 151 of the Code of Civil Procedure, 1908 seeking leave to file additional documents)

5. This is an application seeking leave to file additional documents under the Commercial Courts Act, 2015.

6. Plaintiff, if they wish to file additional documents at a later stage, shall do so strictly as per the provisions of the said Act.

7. Accordingly, the application stands disposed of.

I.A. 5461/2024 (under Section 151 of the Code of Civil Procedure, 1908 seeking exemption from filing originals, clear copies and documents with proper margins)

8. Exemption is granted, subject to all just exceptions.

9. The Plaintiff shall file legible and clearer copies of exempted documents, compliant with practice rules, before the next date of hearing.

10. Accordingly, the application stands disposed of.

CS(COMM) 205/2024

11. Let the plaint be registered as a suit.

12. Issue summons. Summons are accepted by Ms. Nidhi Raman, counsel, accepts summons on behalf of Defendants No. 5 and 6. Upon filing of process fee, issue summons to the remaining Defendants by all 1 2023 SCC OnLine SC 1382.

CS(COMM) 205/2024 Page 2 of 16

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/03/2024 at 21:33:31 permissible modes. Summons shall state that the written statement(s) shall be filed by the Defendants within 30 days from the date of receipt of summons.

13. Along with the written statement(s), the Defendants shall also file affidavit(s) of admission/denial of the documents of the Plaintiff, without which the written statement(s) shall not be taken on record.

14. Liberty is given to the Plaintiff to file replication(s) within 15 days of the receipt of the written statement(s). Along with the replication(s), if any, filed by the Plaintiff, affidavit(s) of admission/denial of documents of the Defendants, be filed by the Plaintiff, without which the replication(s) shall not be taken on record. If any of the parties wish to seek inspection of any documents, the same shall be sought and given within the timelines.

15. List before the Joint Registrar for marking of exhibits on 13th May, 2024. It is made clear that any party unjustifiably denying documents would be liable to be burdened with costs.

16. List before Court for framing of issues thereafter.

I.A. 5458/2024 (under Order XXXIX Rule 1 & 2 read with Section 151 of the Code of Civil Procedure, 1908)

17. Ms. Tanya Verma, counsel for Plaintiff, presents the Plaintiff's case as follows:

17.1. The Plaintiff, Inter Ikea Systems BV, is a part of the Inter IKEA Group having its headquarters in Netherlands, which includes service companies and companies selling IKEA products to franchisees in markets.

Plaintiff is the owner of the IKEA Concept and IKEA Retail System, which is franchised to specific retailers, for sale of affordable home furnishing CS(COMM) 205/2024 Page 3 of 16 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/03/2024 at 21:33:32 products and accessories under the "IKEA"/ " " trademarks. 17.2. The IKEA trademark was coined and adopted by its founder Mr. Ingvar Kamprad in the year 1943, using the first letters of his name and surname, plus the first letters of Elmtaryd and Agunnaryd, the farm and village where he grew up. This mark and logo " ", along with its colour combination and trade dress have been granted trademark registrations in various countries, including India. The mark "IKEA" forms an integral part of the trade names of nearly all the companies functioning under the umbrealla of the Plaintiff-group. Details of registrations of formative versions of the "IKEA" and " " marks are set out in paragraph No. 24 of the plaint.

17.3. The domain name "ikea.com", which entails the Plaintiff's trademark "IKEA", was registered in Plaintiff's favour on 29th July, 1995 and has been accessible worldwide since at least 1998. On 14 th February, 2005, Plaintiff also registered the domain name "ikea.in", which is specifically accessible to the Indian public. These websites have a unique interface and a distinctive manner of presenting the information, ease of access and the data pertaining to Plaintiff's services. The Plaintiff also owns the copyright in the content of the Ikea websites, and as such, they have the exclusive authority to use the same.

17.4. The total retail sales revenue of the "IKEA" products amounted to 44.6 billion euros in the year 2022-23. The Plaintiff also has a formidable presence in India, with their retail stores spanning across various cities, that have garnered significant popularity.

CS(COMM) 205/2024 Page 4 of 16

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/03/2024 at 21:33:32 17.5. Plaintiff's grievance arises from the operation of the website "www.keiekae.store/ikea/" and the mobile application "IKEA" by Defendant No. 1,2 that are an imitation of Plaintiff's own website and mobile applications. The Plaintiff first learnt of the impugned website and mobile application through a complaint received by an aggrieved consumer. As per his account, Defendants No. 1 and 2 openly advertise the impugned website and mobile application as a money-making platform, guaranteeing returns up to 200% of the invested amount within 35 days. The complainant registered himself on the said website through an invite code received from his father, and was made to pay Rs. 620/- as a registration fee to the UPI ID qr.svrtours@sib. The design of the impugned website/ application is such that it allows the registrants to purchase IKEA products for a specified term and amount, which when paid, will fetch the consumer a 'daily income' that is credited to the their e-wallet maintained on the impugned website/ application. As per the scheme of Defendant No. 1, upon expiry of the term of the product, the same is sold to the platform itself for an amount which would be equal to the daily income of the product, multiplied by the term of the product. The resulting amount thus credited to the wallet would be higher than the purchase price of the product. However, no goods are actually supplied to the consumers, nor is the consumer able to redeem their earnings. In addition to the above, the victim was also made to join a WhatsApp group titled "IKEA-1011 WORKING GROUP", with about 150 other participants. The group administrator was one Ms. Emma using the mobile numbers +91 7605932656, +91 7448789563, + 44 7825797648 and + 44 7833750514. However, when he started to question the legitimacy of 2 Hereinafter, "impugned website" and "impugned mobile application", respectively.

CS(COMM) 205/2024 Page 5 of 16

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/03/2024 at 21:33:32 the impugned website and application, he, along with his father, were removed from the group, and the invested amount was never returned to them. In the process, victim's father lost about Rs. 20,000/-. Aggrieved, the victim lodged a complaint with the Cyber Cell Department, Pune. 17.6. The Plaintiff also commissioned the services of a Private Investigator, who confirmed the victim's information. The 'About Us' section and several articles on the impugned website mention information about the Plaintiff and the IKEA products. The 'IKEA Story' section of the impugned website contains a URL that directs the user to a mirror website that has lifted content from the Plaintiff's own website. Further, the impugned website displays the following Certificate of Authorization, purportedly issued by a non-existent Department of Taxation and Electronic Information, which also contains the Plaintiff's " " mark:

CS(COMM) 205/2024 Page 6 of 16

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/03/2024 at 21:33:32 17.7. The Investigator also discovered a YouTube channel run by Defendant No. 2 - Mr. Shekhar Chanra Upreti (available at:

https://www.youtube.com/@shekharchandraupreti6942), whereon the impugned website and application were widely promoted. Through the referral/ invite code given by Mr. Upreti on the channel, the Investigator joined the impugned website and WhatsApp group that had more than 450 members and several administrators. As an illustration, Plaintiff has referred to the following screenshots of messages being circulated on the said group:

CS(COMM) 205/2024 Page 7 of 16

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/03/2024 at 21:33:32 CS(COMM) 205/2024 Page 8 of 16 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/03/2024 at 21:33:33 17.8. Defendants No. 1 and 2 have been organizing in-person speaking sessions/ meet-ups and also advertise that this initiative has been started by the Plaintiff themselves during COVID-19 to help consumers earn money from their home. Besides Defendants No. 1 and 2, many other YouTube channels are also promoting the impugned website and application and are earning revenue/ commission when a user joins using an invite code.

CS(COMM) 205/2024 Page 9 of 16

This is a digitally signed order.

18. The Court has considered the afore-noted contentions. A comparison chart illustrating the similarities between the Plaintiff's website and the impugned website is as follows:

CS(COMM) 205/2024 Page 10 of 16

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/03/2024 at 21:33:33 CS(COMM) 205/2024 Page 11 of 16 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/03/2024 at 21:33:33

19. Screenshots of the impugned mobile application are reproduced below:

CS(COMM) 205/2024 Page 12 of 16

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/03/2024 at 21:33:33 CS(COMM) 205/2024 Page 13 of 16 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/03/2024 at 21:33:33

20. The afore-extracted images from the impugned website and mobile application clearly display the Plaintiff's "IKEA" and " "

registered trademarks without the Plaintiff's consent. It appears that consumers are being misled into investing significant sums of money on the pretext of securing a steady income from the Plaintiff. Prima facie, Defendants No. 1 and 2 have infringed Plaintiff's registered marks, which is detrimental to Plaintiff's goodwill and standing in the market.

21. In view of the above, the Court finds that the Plaintiff has made out a prima facie case in their favour and in case an ex-parte ad-interim injunction is not granted, Plaintiff will suffer an irreparable loss; balance of convenience also lies in favour of the Plaintiff and against Defendants No. 1 and 2.

22. Accordingly, till the next date of hearing, the following directions are issued:

22.1. Defendants No. 1 and 2, and all persons acting on their behalf, are restrained from using the Plaintiff's registered "IKEA"/ " "

trademarks and/ or their variations, as a part of their domain names, websites, mobile applications, social media handle names/ profiles credentials/ description, promotional/ business activities on digital or print media, bank accounts and/ or any business papers etc. in any manner, that would amount to infringement and passing off of Plaintiff's registered "IKEA"/ " " trademarks.

22.2. Defendants No. 1 and 2, and all persons acting on their behalf, are restrained from using a layout/ user interface on their website CS(COMM) 205/2024 Page 14 of 16 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/03/2024 at 21:33:33 "www.keiekae.store" or any other website, which amounts to infringement of the Plaintiff's copyright vested in the layout/ user interface of their website "www.ikea.com".

22.3. Defendant No. 3 is directed to suspend/ block the domain name "www.keiekae.store". They shall also file in a sealed cover, all information relating to the registrant of the said domain name, within four weeks from today.

22.4. Defendant No. 4 is directed to block the WhatsApp accounts of the mobile numbers +91 7605932656, +91 7448789563, + 44 7825797648, + 44 7833750514, +91 8658313725, +91 8700833616, +91 9410938818, +91 9891792413, and +91 9643263506. They shall further block/ disable access to the WhatsApp groups "IKEA-1011 WORKING GROUP" and "IKEA WORKING GROUP-1019".

22.5. Defendants No. 5 and 6 shall issue necessary notifications for suspending the operation of the impugned website "www.keiekae.store". 22.6. Defendants No. 7 and 8 are directed to freeze the bank accounts associated with the UPI IDs qr.svrtours@sib and ganesh.traders7846@sbi. 22.7. Defendants No. 9 to 12 shall block the mobile numbers +91 7605932656, +91 7448789563, +91 8658313725, +91 8700833616, +91 9410938818, +91 9891792413 and +91 9643263506.

23. Compliance of Order XXXIX Rule 3 of the Code of Civil Procedure, 1908 be done within a period of five days from today.

24. Issue notice. Notice is accepted by Ms. Nidhi Raman, counsel for Defendants No. 5 and 6. Reply, if any, be filed within four weeks from today.

25. Upon filing of process fee, issue notice, by all permissible modes to CS(COMM) 205/2024 Page 15 of 16 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/03/2024 at 21:33:33 the remaining Defendants, returnable on the next date of hearing. Reply, if any, be filed within four weeks from the date of service. Rejoinder thereto, if any, be filed within two weeks thereafter.

26. List on 14th August, 2024.

SANJEEV NARULA, J MARCH 12, 2024 ab CS(COMM) 205/2024 Page 16 of 16 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/03/2024 at 21:33:33

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Delhi High Court - Orders