Delhi HC Issues Directions to Curb Trademark Abuse, Fraudulent Domain Names, Online Financial Scams

The Delhi High Court has issued comprehensive directions to domain name registrars, registry operators, banks, regulators and government authorities. The bench of Justice Prathiba M. Singh observed that fraudulent domain registrations have become a “systemic problem” rather than isolated incidents. The bench noted that fraudsters exploit well-known trademarks to create a network of deception involving fake websites, untraceable email IDs, temporary phone numbers, and bank accounts opened using forged or unverifiable documents. By the time legal action is initiated, the funds are usually withdrawn and new infringing domain names are created The ruling came in a batch of commercial suits led by Tata Sky Limited (now Tata Play Ltd.), where unknown entities had registered infringing domain names to impersonate the company and defraud unsuspecting consumers. The dispute arose after Tata Sky Limited discovered that several domain names deceptively similar to its official website were being registered by unidentified individuals. These fake websites were being used to sell DTH connections, set-top boxes, channel packages, and even to solicit money under the guise of employment offers and dealership opportunities. Consumers were misled into believing that these services originated from Tata Sky, resulting in financial losses and reputational damage to the brand. The plaintiff contended that the registrants deliberately masked their identities using false WHOIS details, proxy services, and privacy protection features offered by Domain Name Registrars (DNRs), making it nearly impossible to trace the perpetrators. The Court described domain names as the “online soul” of a business and emphasised that misuse of trademarks in cyberspace causes not only intellectual property violations but also large-scale cheating of innocent consumers. The judgment critically examined the role of Domain Name Registrars, Registry Operators, and ICANN. The Court held that the existing framework for verification of registrant details is grossly inadequate. It noted that registrars often collect inaccurate or fictitious information at the time of registration and provide bundled privacy services that shield wrongdoers from accountability. The Court clarified that while DNRs may enjoy intermediary protection, such protection is conditional upon due diligence and cooperation with court orders. Registrars cannot turn a blind eye when infringing domain names are repeatedly registered using famous trademarks. A key aspect of the judgment relates to the role of banks in enabling or preventing cyber fraud. The Court took note of repeated delays by banks in responding to law enforcement requests and the ease with which fraudulent accounts are opened and operated. It highlighted that money collected through fake websites is often withdrawn within hours, frustrating investigation efforts. The Court appreciated steps taken by RBI, IBA and NPCI in evolving Standard Operating Procedures (SOPs) for sharing information with law enforcement agencies. It also welcomed the introduction of the Beneficiary Bank Account Name Lookup Facility, aimed at enabling customers to verify the name of the recipient before transferring funds through RTGS, NEFT, IMPS and UPI. Key Directions Issued by the Court In a far-reaching set of directions, the Delhi High Court ordered: Domain Name Registrars and Registry Operators to strengthen verification mechanisms at the time of registration and ensure prompt compliance with court orders for suspension and blocking of infringing domain names. Implementation of ‘Dynamic’ and ‘Dynamic Plus’ Injunctions, allowing trademark owners to block future infringing domain names without approaching the court repeatedly. Banks to strictly adhere to RBI and IBA SOPs and respond within prescribed timelines to requests from law enforcement agencies. Government authorities, including MeitY, DoT and MHA, to coordinate with stakeholders to create a robust framework for preventing misuse of domain names and online fraud. Law Enforcement Agencies to continue coordinated investigations through specialised cyber crime units such as the IFSO and leverage national platforms like the Indian Cyber Crime Coordination Centre (I4C). Case Details Case Title: Tata Sky Versus S G Enterprises Case No.: CS (COMM) 20/2019 & I.A. 561/2019 Date: 27/12/2025 Counsel For Petitioner: Tanmaya Mehta Counsel For Respondent: Alipak Banerjee Click Here To Read Order Read More: Supreme Court to Hear Suo Motu Case on Defining the Aravalli Hills; Mining Regulation at the Core

Delhi HC Issues Directions to Curb Trademark Abuse, Fraudulent Domain Names, Online Financial Scams

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