Intellectual Property Rights (IPR) Infringement through E-commerce Platforms
The rapid growth of e-commerce has revolutionized the way goods and services are bought and sold. However, this growth has also led to a rise in Intellectual Property Rights (IPR) infringements, as online platforms often facilitate the unauthorized sale and distribution of protected content and products. With the click of a button, counterfeit goods, pirated content, and trademark violations can reach a global audience, often bypassing traditional enforcement mechanisms.
Types of IPR Infringement on E-commerce Platforms
- Copyright Infringement
- Sale of pirated books, software, films, or music.
- Unauthorized reproduction or distribution of digital content.
- Trademark Infringement
- Listing and selling counterfeit branded goods.
- Use of logos, names, or slogans without permission to mislead consumers.
- Patent Infringement
- Unauthorized sale of products that use patented technology or processes.
- Design Infringement
- Copying and selling products that infringe on registered industrial designs (e.g., clothing, furniture, electronics).
- Trade Secret Misuse
- Sale of products developed using stolen proprietary information.
How Infringement Happens via E-commerce
- Third-party sellers list infringing goods without adequate vetting.
- Marketplace models lack sufficient IP enforcement measures.
- Anonymous seller accounts make it hard to trace infringers.
- Cross-border transactions complicate jurisdiction and enforcement.
- Automated product listings and drop shipping increase scale and speed of distribution.
Legal Framework in India
Key statutes involved in IPR protection:
- The Copyright Act, 1957
- The Trade Marks Act, 1999
- The Patents Act, 1970
- The Designs Act, 2000
- Information Technology Act, 2000 (especially Section 79 on intermediary liability)
- Under Indian law, platforms are considered intermediaries and enjoy limited liability unless they fail to take action after receiving notice of infringement.
Notable Case Laws
- Christian Louboutin SAS v. Nakul Bajaj (2018)-The Delhi High Court held that online platforms can be liable if they are actively involved in the sale of counterfeit products.
- Kent RO Systems Ltd. v. Amit Kotak (2020)-Addressed intermediary liability where platforms failed to act against the sale of counterfeit water purifiers.
Responsibilities of E-commerce Platforms
- Implement IP protection mechanisms (e.g., brand registries, takedown policies).
- Verify sellers and maintain transparency of origin.
- Remove infringing listings upon notice or detection.
- Monitor platform using AI or manual moderation.
- Cooperate with law enforcement and rights holders.
IPR infringement through e-commerce platforms poses significant risks to creators, innovators, and brand owners. While online platforms have democratized commerce, they also require robust regulatory oversight and proactive self-regulation to ensure IP protection. Collaboration among governments, e-commerce companies, and rights holders is critical to address these infringements and maintain trust in the digital marketplace.
KEYWORDS- IPR Infringement, Calcutta High Court, Patent, Trademark, Copyright, Designs, IPINDIA,
Source- Research conducted by Swarupa Ghosh Law Chamber