In a judgement that may just set the drift against global firms blocking important domain and trade names for later selling them at a profit, the Delhi High Court has held that a company cannot restrain others from using similar names unless it conducts business in that country and is bound to suffer irreparable damages to its commerce because of its use.
Breaking away from conventional outlook in such cases, Justice S N Dhingra observed that the practice of blocking domain names and trade names merely with the purpose of selling it in future and not using it for commercial reasons was not something the courts would find favour with.
“Blocking of trademark and blocking of trade name is not looked upon kindly by the Courts. It has become a practice to block important domain names, important trade names so that others cannot use it despite the fact that the person himself may own it just to sell it in future,” said Justice Dhingra while dismissing a plea by a US-based firm. SOURCE
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