High Court Issues Sweeping Directions to Curb Trademark Fraud via Fake Domain Names

Xiaomi Technology India Private Limited and Xiaomi Inc. filed a commercial suit before the High Court seeking injunctive relief against unknown defendants operating fraudulent websites using Xiaomi’s registered trademarks “XIAOMI”, “MI” and “REDMI” in their domain names. These websites falsely claimed to be authorised dealers, franchisees or recruitment portals and induced members of the public to part with money on false assurances.

The plaintiffs contended that domain name registrars permitted registration of infringing domains using fictitious or incomplete details, frustrating enforcement. Authorities including DoT, MeitY and banks were impleaded to address systemic regulatory gaps enabling such frauds.

Issue Before Court: Whether Domain Name Registrars and Registry Operators are legally obliged to verify registrant details and prevent misuse of domain names, and whether Dynamic+ injunctions can be granted to curb recurring infringing and fraudulent websites.

HC’s Order: The Hon’ble High Court held that the impugned domain names were prima facie infringing and designed to perpetrate fraud. The Court issued wide-ranging directions, including requiring all Domain Name Registrars operating in India to appoint Grievance Officers for compliance with court orders. It directed that registrant details should not be masked by default and that privacy protection should be available only through an express opt-out mechanism.

The Court further held that registrars facilitating alternative domain registrations for injuncted parties risk losing safe-harbor protection under Section 79 of the IT Act. While substantive relief was granted, final decrees were deferred pending completion of service on all defendants.

To Read Full Judgment, Download PDF Given Below