Cyber-squatting is a crime that is commonly defined as registering, trafficking in, or using a domain name with mala fide intent to make profit from the goodwill of a domain name registered in somebody else's name. The cybersquatter offers to sell the domain to the person or company who owns a trademark contained within the name at an inflated price. These practices include the deliberate mala fide registration in the hope of being able to enable one to take unfair advantage of the reputation attached to those marks. The recent judgment of Super Cassettes Industries Ltd. Vs Wang Zhi Zhu Ce Yong HU and Ors. {2009(39) PTC 162 (Del)} highlights this phenomenon and its severity.
The Instant suit was filed by Super Cassettes Industries for the relief of permanent injunction against the defendants Zhi Wang Zhi Zhu Ce Yong HU (later referred as Zhi Wang) for using Super Cassettes Industries Ltd.'s trademark/trade name SUPER CASSETTES or any other name deceptively similar thereto and for the transfer of the domain name supercassettes.com to Super Cassettes Industries Ltd. and for the delivery of all the documents, rendition of accounts and damages to the tune of Rs.5 Lakh.
Super Cassette Industries was incorporated in 1983 and is engaged in the business of consumer electronics, CD's audio/video magnetic tapes and cassettes and film production and Super Cassettes Industries Ltd. pleads that the trademark and trade name SUPER CASSETTES is perceived to be indicative of the Super Cassettes Industries Ltd.
Super Cassettes Industries Ltd. argued that Zhi Wang's real entity behind the domain name and the website supercasettes.com, dealt exclusively with pornographic content which was highly detrimental to the corporate image of the plaintiff. Moreover the actions of the Zhi Wang made them liable for an action for passing off. Finally they pleaded that since Super Cassettes imports substantial amount of goods from China where Zhi Wang resided and that their actions are detrimental to the Super Cassettes
The Court held that due to the failure of Zhi Wang to submit a written submission the matter was decided ex–parte relying solely on the averments of Super Cassettes Industries Ltd. It was held that even though Super Cassettes Industries Ltd is not the registered owner of the trademark SUPER CASSETTES but there exists unquestioned evidence that SUPER CASSETTES is the corporate and trade name of Super Cassettes Industries Ltd. The judgment in the case of Tata Sons Ltd. VS Manu Kosuri was cited which held that it is now a settled law that with the advent of the modern technology domain names or internet websites are entitled to protection as a trademark because they are more than a mere address.
The Court observed that the creation of the domain supercassettes.com in 2003, by which time Super Cassettes Industries Ltd had been carrying on business for more than 20 years under the said corporate name is clearly an attempt to pass of its goods as that of the plaintiff and the impugned use would be highly detrimental to the plaintiff. The Court opined that Zhi Wang seems to have made it a practice to register domain names with the trademark/ trade name of successful business so as to reap advantage. Accordingly the Court ordered a decree of permanent injunction and the transfer of domain name in view of the nature of business conducted by Zhi Wang, which was opined to be detrimental to the Super Cassettes Industries Ltd a compensation of Rs. 5 Lakhs was awarded.
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