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14 TH A MITY M OOT C OURT C OMPETITION 2015 A MITY L AW S CHOOL D ELHI 1 1. Zo o z l e G m BH i s a Ger m an m u l t i nat i onal c o m pany h e a d quar t ered at Ber li n. I t o pera t es a n i nte r n e t sea r c h eng i ne i n t h e url h ttp:// ww w .z o oz l e. c om (hereinafter called ‘The W ebsite’ ) . Wh en a user e n ters a que r y i n t o t h e sea r c h t oolbo x , t h e w ebs i te gener a t es an ‘o r gan i c se a r c h li st’ o f h y p er li n k s t h a t i t d ee m s m ost re l e v ant t o t h e que r y. Th e se h yper li n k s are of var i ous 3 rd p a r ty w ebs i tes t h at c onta i n t h e query or w or d s s imil ar to t h e quer y . Th e h ype r li n k s are h i g hli g h ted i n b l ue and are arranged i n o r d e r of re l e van c e. Th e or d er of re l evan c e i s d eter m i ned by a l g o r i t hm s w r i t ten i nto Z o oz l e’s sour c e c o d e a nd h as no h u m a n i nte r fa c e i n i ts d e t e r mi n a t i on. The website is considered one of the most effective and efficient internet search engine websites and is hugely popular, with almost sixty percent of the internet users around the world preferring to use www.zoozle.com for their internet queries. In India, the website is even more popular, with more than eighty percent of Indian internet users accessing the website on a daily basis. 2. Wh en Zooz l e G m BH f i r s t be g an ope r at i ng th e sear c h eng i ne i n t h e year 2003, i t w a s a n o n - prof i t entity and re li ed so l e l y on vo l untary c ontr i b u t i ons from i ts users. However, due to rising costs as well as ambitious plans to expand the scope, utility and outreach of the website, in t h e y e ar 2011, Z o oz l e G m B H d e v e l o ped a s ch e m e of a d vert i s i ng t h r ough w hic h bus i nesses or persons m a y a d v ert i se o n i ts se a r c h eng i ne. T hi s s ch e m e of a d v ert i s i ng w as c a ll ed ‘ A d V e r b a ’. A pe r son, w h o w i s h es to a d v ert i se o n A dV e r ba , c a n buy ‘ k ey w or d s’ o f h i s/her c h o ic e t h r o ugh an on li ne a u c ti o n a m ong s t pros p e c t i ve buyers. Ke y w or d s c a n be boug h t fo r s p e c i f i c r egi o ns o n l y. A k ey w o r d i s a w o rd w hic h w h en t y ped i n t o t h e w ebs i t e’s sea r c h t o ol as a query, t r i gg e rs i n a d d i t i on to t h e o rgan i c s ea r c h li st, resu l ts t e r m ed a s ‘suggested p os t s’. Th e hi g h est b idd er for t h e k ey wo rd d e cid es w h a t w eb li n k s to p l a c e i n t h e suggested p o s ts. Th e b i d d er usua ll y p l a c es hi s o w n w ebs i te’s li nk a s t h e suggested p o s t. Th e pur c h a ser o f t h e k ey w o rd c a n a l so p l a c e a s m a l l d es c r ip t i on be l ow t h e a c tu a l li n k . Th e sugg e s t ed p osts appear a bo v e t h e ‘ o r gan i c s ea r c h li st’ and are d i st i n g u i s h ab l e f r om t h e sear c h li st as t h ey are s h a d ed i n a light ye ll ow c o l or and t h e w or d s “ S p onsored A d s” a p pear a l ongsi d e t h e m . 14 TH A MITY M OOT C OURT C OMPETITION 2015 A MITY L AW S CHOOL D ELHI 2 3. M r. Ar v i nd Kejru M ur g w a l a es t a b li s h ed a fast food rest a urant c a l l ed ‘ M u r g w a l a’s Best Butter C hic k en’ (h e re i n a f ter M BBC) i n De lh i i n t h e y e a r 1959 at C o nnaug h t P l a c e. M BBC s o on be c a m e a very p opu l ar resta u ra n t a m ongst t h e peop l e o f De lhi . T o d ay, t h e rest a urant is a c h a i n w i th o v er twenty five o u t l ets w i t hi n De lhi . In order to maintain quality as well as out of respect for the wishes of Mr. Arvind Murgwala, the chain has never been expanded outside Delhi, though his sons Arnob Murgwala and Arnab Murgwala were always keen to do so. Arv i nd M urg w a l a passed a w ay i n t h e y e a r 1988 a nd a d i spute b ro k e out b e t w een hi s s ons A r nob M u r g w a l a and h i s younger br o t h er Arnab M urg w a l a as t o t h e d iv i s i on of a s sets. I n t h e end i t w as agreed between t h e br o t h ers t h at A r nob w o u l d h a v e f u l l o w ne r s hi p of M BBC and Arnab w ou l d h a v e two bun g a l o w s which t h e f a t h er h a d l e f t be hi nd located in Golf Links, De lhi . T h ey a c c o r d i ng l y entered i n t o a n A gree m ent d a t ed 01.01.1989 w h e r ein A r nab r e li nqu i s h ed a l l c l a im s o ver M BBC a nd Arn o b r e li nqu i s h ed a l l r i g h ts and cl a im s o ver t h e t w o pr o pert i es. A c c o r d i ng l y, t h e bus i ness (M BBC) w a s t a k en o v er by Arnob i n 1989. Th e T ra d e M ark t h a t M BBC uses i n t h e c ou r se of t ra d e is re p ro d u c ed i n Anne x u r e – I . A l t h ough t hi s i s t h e m a r k M BBC h a d been us i ng s i n c e i ts i n c ept i on i n 1959, t h e m a rk w as o n l y re gi ste r ed by t h e R eg i s t rar of T ra d e M ar k s i n t h e year 1993 o n Arn o b’s app li c at i on. 4. I n t h e y e ar 2008, Arn o b c re a t ed a w ebs i te f or hi s bus i ness w i th t h e URL w w w .best b utt e r ch i c k en. c o m . T hi s w ebs i te a ll o w s p rospe c ti v e c onsu m e rs t o v i ew t h e m enu on li ne and p l a c e o r d ers for h o m e d e l i ver y . Arnob a l so guaranteed t h at o r d e rs p l a c ed o n hi s w ebs i te w o u l d be d e l i vered wi t hi n thirty m i n u tes o r l ess a nd extensively a d v ert i sed hi s bus i ness a l ong w i th t h e w ebs i te’s URL i n the m a ss m e d i a a s w e l l as h o ar d i ngs i n seve r al pla c es a c r oss t h e ci ty. Th e C o m p any’s f i nan c i al s t ate m ents for t h e Assess m ent Year 2012 - 13 re c or d ed a d ve r t i se m ent e x p e n d i t u r e as R s. 1,00,00,000/ - 5. M r . Arnab M urg w a l a m oved t o Ko l k a ta i n t h e year 1990. H e d e ci d ed to s tart a rest a urant of hi s o w n and fo unded ‘A r nab’s Butter C hic k en’ ( ABC) i n t h e ye a r 1990. Thi s rest a urant t oo h as a w ebs i te of i ts o w n w i th t h e URL ww w . a rn a bb u tt e r ch i c k en. c o m w h ere 14 TH A MITY M OOT C OURT C OMPETITION 2015 A MITY L AW S CHOOL D ELHI 3 c us t o m ers c an p l a c e or d e rs for h o m e d e li v ery. ABC h as been m o d erate l y su cc es s ful c o mm e r c i a l l y a nd o perates three br a n ch es w i t hi n Ko l k a t a . I n the year 2007, Arn a b opened an out l et of ABC i n De lh i at Karol B agh and i t r uns w i th m o d e rate su cc ess. A r nab ob t a i ned reg i s t rat i o n of t h e T r a d e M ark used by ABC i n t h e y e ar 2000. Th e m ark i s re p ro d u c ed i n Anne x u r e – II . 6. I n t h e y e ar 2012, Arn a b d e cid ed t o use Z o oz l e’s A dV e r b a to a d ver t i se hi s w ebs i te. H e b i d f or and su cc es sf u ll y pur c h a sed around fifty k ey w or d s i n cl u d i ng t h e w o r ds ‘Best’, ‘ T asty’, ‘Bu t te r ’,‘ C hi ck en’, ‘ M urg w a l a’ and ‘Arnab’ f or use w i t hi n De lh i a nd Ko l k a ta. H e a l so boug h t mi s - spe l t v ers i o ns o f t h ese k ey w o r d s su c h a s ‘C chic k en’, ‘ B u t e r’ a nd ‘ A rn o b’ be c ause i nternet use r s of t en tend t o misspell se a r c h t e r m s. As a resu l t, wh en a user types t h ese t h r ee w or d s i n c o m b i n at i on i n t o t h e Zo o z l e sear c h bar, t h e sear c h r esu l t p age w o u l d c on t a i n a suggested p o s t w i th t h e li nk to Arn a b’s w ebs i te ( w w w . a rn a bb u tt e r ch i c k en. c o m ) p l a c ed above t h e organ i c sear c h r esu l ts. Arnab a l so a d d ed t h e d es c r i pti o n ‘Better than t h e Best B u t t er C hic k en’ u n d er t h e li n k . 7. Arnob soon n o t ic ed t hi s a nd f e l t t h a t t h ere w as a c h an c e t h at c onsu m e rs w h o w ere se a r chi ng for hi s w ebs i te c ou l d be mi s l ed i n t o t h e w ebs i te o f A r nab w hic h w as p l a c ed in the ‘Su g gested Po s ts’ area of the search results page. H e f ea r ed t h at on c e t h ey e n ter t h e w ebs i te o f A r nab, t h ey w ou l d just p l a c e an o r d er t h e r e, t h e r eby c aus i ng hi m a l oss of c us t o mers . On 06.06.2012, h e w r o t e to t h e h e a d of f i c e of Zooz l e G m BH at B e r li n and asked t h em t o r e m o v e t h e k ey w or d s ‘ Best’, ‘ Bu t ter’ and ‘ C hic k en’ c l a imi ng t h a t t h ese w ere hi s reg i st e red t ra d e m arks and i t w as a n i nf r i nge m ent of th e m a r k s t o se l l t h em t o Arn a b as k e y w or d s. H e atta ch ed a c opy of hi s t ra d e m ark reg i strat i on. I n r e p l y, Zo o z l e G m BH stated t h at one of t h e t er m s of t h e i r AdV e r b a Ag r ee m ent w a s t h a t t r a d ema r k s c annot be used as k ey wo r d s and w h enever a t r a d e m ark pro p r i etor m a kes a c o m p l a i nt t h at a Ke y w ord be i ng so l d is a re gi s t ered tra d e m ark i n a juris dic t i on, Zooz l e G m BH, p u r suant to t h e i r o w n i nvest i g a ti on, suspends t h e use of t h e k e y w o r d . 8. S ubs e que n t l y t h ough, o n 01.07.2012, Zooz l e G m BH w rote t o Arnob st a t i ng t h at i n t h e op i n i on of t h e i r l egal a d v isors, t h e k ey w or d s so l d t o Arnab w ere n o t t h e t ra d ema r k s of 14 TH A MITY M OOT C OURT C OMPETITION 2015 A MITY L AW S CHOOL D ELHI 4 Arn o b as on t h e i r o w n t h ese w or d s a re part of t h e c o m m ons of t h e Eng l i sh l ang u age and i n any c ase A r nob’s m a r k h as t o be v i ewed as a w h o l e and tra d e m a rk l aw off e rs no p rote c t i on t o parts of a m a r k . 9. Arnob subsequently app r oa ch e d t h e De lh i Hi gh C o urt i n C.S.(O.S.) No. 343/2012 seek i ng p e r m a ne n t i n j un c tion rest r a i n i ng Zo o z l e G m BH f r om us i ng t h e w or d s c o n t a i ned i n hi s t ra d e m a rk a s k e y w o r d s and C .S.(O.S.) N o . 344/2012 aga i nst A r nab Murg wal a ( 1 st Def e n d a nt) and Z o oz l e G m BH ( 2 nd Defen d a n t) c l a imi ng i n fr i nge m ent of hi s t ra d e m ark and a c t i on for p ass i ng off. H e a l so c l a im ed t h a t as p e r t h e ter m s o f t h e 10. A gree m ent o f 0 1.01.1989, t h e m ark ‘ M u r g w a l a’ and t h e g o o dw il l a s s o c i a t ed w i th i t be l on g ed e x cl u s i v e l y t o hi m and t h e a c t i ons of t h e 1 st Defen d a n t i n us i ng t h at of k ey w ords t o a d v e r t i se i s an i nfr i nge m ent of t h e t r a d e m a r k of the Plaintiff . 11. At the same time, Arnob also decided to file an Information listed as Case No. 88/2012 in November, 2012 before the Competition Commission of India (C.C.I.) under Section 19 of the Competition Act, 2002, alleging that the Adverba Advert isements Scheme is an abuse of dominant position by Zoozle GmBH and that it enters into anti - competitive agreements with the users of the programme due to the discriminatory practices which are adopted by the Company in the running of the Adverba Advertis ement scheme resulting in denial of market access and restriction of provision of services as well as the violation of the intellectual property rights which had taken place in the particular case of the Informer, i.e., Arnob Murgwala. 12. I n r ep l y to the Sui t, t h e 1 st D efen d ant t o ok t h e s t and t h at t h e im pugned k ey w or d s a r e on l y d es c r i pt i ve, gener i c or l au d a t ory and t h at t h ey oug h t n o t t o h ave been re gi s t ered as tra d e m ar k s i n t h e f i rst p l a c e and c oun t er sued for rev oc at i on of t h e m ark’s re gi stra t i on. Th e 2 nd D e fen d ant a l so s tated t h at h e h a d a r ig h t to t r a d e i n hi s o w n na m e and t h erefore t h e use of t h e k e y w ord ‘ M urg w a l a’ d o es not i nfr i nge t h e t ra d e m a r k of t h e Pl a i nt i ff. 14 TH A MITY M OOT C OURT C OMPETITION 2015 A MITY L AW S CHOOL D ELHI 5 13. Th e 2 nd D ef e n d ant a d opted t h e abo v e a r gu m ents and a l so t o o k t h e stand t h at i t i s m ere l y a sear c h eng i ne and perfor m s t h e fun c t i on of a d i re c t o ry. T h ey cl a i m ed t h at su c h use of t h e w or d s w as n o t ‘use i n t h e c ourse of t ra d e’ and t h erefore no a c t ion for i n f r i nge m ent arose. 14. Meanwhile on 18.01.2013 , the C.C.I. found that there was no contravention of the provisions of section 3 or Section 4 of the Competition Act, 2002 and accordingly, the matter was directed to be closed under the provisions of Section 26(6) of the Act. Arnob Murgwala immediately appealed against the decision of the C.C.I. in the C ompetition Appellate Tribunal (COMPAT). 15. On 15.01.2014, De lh i H i gh C o urt h e a rd b o th m atters t oget h er and found i n f a vour of t h e D ef e n d ants t h r ough c o m m on ju d g m ent d a t ed 15.01.2014. Th e Pla i nt i f f’ s a p pe a l ed before t h e Di v i si o n B en c h o f t h e De lh i Hi gh C o urt a nd t h e Appeal w as d is mi ssed at t h e a d m i ss i o n s t age itself. At the same time, the Competition Appellate Tribunal, vide its Order dated 16.01.2014, affirmed the Order of the C.C.I. dated 18.01.2013. 16. Th e Pla i nt i f f - A p pe ll ant t h e n appea l ed before t h e S u p r e m e C o urt of I n d ia . Zoozle GmBH also preferred to file a Statutory Appeal against the Order of the COMPAT dated 16.01.2014. On the Statutory Appeal coming up before the Hon’ble Supreme Court, It was prayed by the Counsel for Zoozle GmBH that the Appeal may b e tagged along with the Petitions/Appeals filed by the Plaintiff/Appellant/Petitioners against the Judgement of the Hon’ble Delhi High Court as they relate to the same issue in substance. The Petitions/Appeals as well as the Statutory Appeal have been a d mi t t ed and are li s t ed for f i nal h ear i ng. 14 TH A MITY M OOT C OURT C OMPETITION 2015 A MITY L AW S CHOOL D ELHI 6 ANNE X U R E – I ANNE X U R E – I I