Microsoft Wins Landmark Judgement for Trademark Infringement

• 31 Jan 2025
• TM Team
• 0 Comments

In a first-of-its-kind ruling in India, the Commercial Court at Gurugram delivered a decisive blow against tech fraud and trademark infringement, awarding exemplary and punitive damages to Microsoft Corporation (Microsoft), a global tech leader. The Court held Retnec Solutions Private Limited (Retnec) and its collaborators liable for unlawfully misusing MICROSOFT, a well-known trademark, for running a large-scale tech scam. Microsoft was represented by Prashant Gupta and Karan Singh of K&S Partners, a leading Intellectual Property law firm, who successfully argued the case. The judgment not only vindicates Microsoft's rights but also sets a precedent for holding perpetrators accountable, particularly in the digital age where such scams are prevalent.

Retnec operated a fraudulent call centre in Gurugram, deceiving unsuspecting consumers under the guise of providing technical support services. They used misleading 'pop-up' messages on consumers' screens and/or cold calls, presenting themselves as 'Microsoft Certified Technicians'. Victims from several countries, including the United States of America and Canada, were tricked into believing that their computers were compromised by malware or hackers, prompting them to pay for fictitious services and counterfeit antivirus software.

In November 2018, Microsoft filed a First Information Report (FIR) with the local police station against Retnec. A police raid at the premises of Retnec uncovered incriminating evidence such as computer systems, hard disks and notepad files containing scripts for fraudulent calls. These documents detailed phone numbers linked to foreign entities, scripts used for deceiving victims, among others. The police also found images of cheques and excel sheets setting out names of various entities, along with payment records. Retnec directors, Gaurav Sahaye and Akshay Anand were arrested.

Microsoft filed a suit against Retnec, its directors and other foreign entities alleging that Retnec and its directors conspired with foreign entities, including Skyfill Business Solutions LLC and Apzee Technologies LLC, to perpetuate this scam.

Court Ruling and Damages

The Court held that Retnec's impersonation of personnel from the customer support services of MICROSOFT to deceive customers constituted a clear violation of Microsoft's intellectual property rights and damaged its reputation. Consequently, the Court restrained the defendants from using the MICROSOFT trademark or any deceptively similar marks.

More importantly, the Court awarded exemplary and punitive damages along with legal costs, totalling INR 75,00,000 to Microsoft. Retnec and its directors were held jointly and severally liable for INR 50,00,000, while Skyfill Business Solutions LLC and Apzee Technologies LLC were ordered to pay INR 5,00,000. The Court also ordered the defendants to bear Microsoft's legal costs, awarding an additional INR 20, 65,000.

Prashant Gupta, Litigation Partner at K&S Partners, who represented Microsoft, emphasized the ruling's importance:

"This judgment serves as a strong deterrent against the growing menace of tech scams. Fraudsters often exploit trusted brand names like Microsoft to prey on unsuspecting consumers, causing financial and emotional harm. The Court's decision underscores its readiness to tackle such schemes with an 'iron hand,' ensuring that intellectual property laws are enforced with full vigour." 

Steven Masada, Assistant General Counsel & Worldwide Lead, Digital Crimes Unit, Microsoft, welcomed the ruling, stating: "This landmark judgment by the Gurugram Commercial Court is a significant victory in our ongoing battle against tech fraud and trademark infringement. Over the years, Microsoft's Digital Crimes Unit (DCU) has significantly evolved its collaboration with law enforcement agencies worldwide. We deeply appreciate the dedication of the law firm K&S Partners, the courts in India, and the law enforcement agencies involved in this case. By sharing threat intelligence and leveraging our combined resources, we aim to protect consumers and uphold the integrity of trusted brand names like Microsoft."