Ip and e commerce

1. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
By
Arvind M Velu
IP and E-Commerce: The
Jurisdictional Issue

2. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Evolution of E-Commerce
• E-Commerce is defined as the use of computers
and information technology to transact business
by and between entities and individuals.
• It has grown from just a small sector of business to
redefine our economy.
• E-Commerce is of four types:
1. B2B - Business to Business
2. B2C - Business to Consumer
3. C2B - Consumer to Business
4. C2C - Consumer to Consumer

3. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Rationale behind E-Commerce
Growth
1. Rising Incomes, leading to a better standard of
living.
2. Greater variety of goods and services openly
available online.
3. Convenience of buying and delivery options.
4. Advancements in the fields of mobile operating
systems and other related technologies.
5. Rise in internet penetration and usage base.
6. Domestic and foreign capital being pumped in.

4. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
E-commerce: India and the World

5. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
E-Commerce in India

6. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
E-Commerce in India
• It is evident that E-Commerce in India is at a
nascent stage, but by estimated projections, it is
set to become the largest e-commerce market in
the future.
• Sites such as Flipkart, Snapdeal, Myntra and
Jabong, are Indian startups that have proved that
e-commerce as a business model is here to stay.
• Retailers who adapt to this mode of business will
eventually benefit. Those who do not adapt will
eventually be left behind.

7. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
IP and E-Commerce: A Correlation
• IP is just as valuable or in most situations more
valuable than physical or real property.
• IP has become a central element in economic and
cultural policy in the world today.
• E-Commerce is directly linked to IP in many ways.
Firstly, the subjects traded on these e-commerce
sites such music, pictures, entertainment,
software, designs etc are all protected by IP laws.
• Secondly, domain names and content of sites are
also protected by IP laws.

8. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
• Intellectual property is often infringed upon
online. In the field of e-commerce, the areas of
copyrights and trademarks are most infringed.
( WIPO has often termed the internet as the ‘worlds
biggest copy machine’)
• An ancillary issue that arises from the legal issues
in the confluence of IP and E-Commerce is that of
Jurisdiction.
• The internet does not posses a jurisdiction of its
own and hence the problem of localizing an issue
and applicability of relevant laws will arise.
The Legal Issue of IP and E-
Commerce:

9. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
• For example, ‘A’, situated in India, decides to
download an article from a website, and pays for
it via electronic-payment. Subsequently, he is not
able to perform the download. He wants to
initiate a legal suit against the owner of the site.
However, the owner of the site is situated in
Thailand. The site itself is based out of a server in
Brazil. Now the question arises as to whether the
aggrieved party should approach the courts of
Brazil, Thailand or India for his grievances to be
redressed.

10. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
• As no uniform jurisdictional code exists, legal
practitioners resort to the ‘conflict of laws’ or
Private International Law (PIL).
• Private International Law is essentially a branch of
municipal or domestic laws. It regulates the
relationship between individuals on an
international level.
• In the internet era, a protected work can be
accessed through a website anywhere in the world.
Hence the need for PIL arises.
Private International Law

11. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Theories in Jurisdiction…

12. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
In Personam Jurisdiction
 The words ‘in personam’ mean ‘directed towards
a particular person’. It refers to a right, action,
judgement or entitlement that is attached to a
specific person.
 An ‘in personam’ suit is one in which relief is
sought against, or punishment is sought to be
inflicted upon a ‘specific person’.
 These suits are always against an individual
person and only compensatory benefits are
awarded.

13. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Motion Pictures USA v. iCrave TV, 2000.
This case involved the sale of copyrighted material
online in the US. The defendant was involved in the
sale of copyrighted television and entertainment
programs through their site. The petitioner sought
the intervention of the courts to restrain the
activities of the defendant, a Canadian website
alleging Copyright infringement, Trademark
Infringement and unfair competition amongst
other things. It was held that by infringing
trademarks and copyrights within the US and
advertising to American viewers, the US courts had
personal jurisdiction over the case.

14. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
This theory states that minimum contact can be
deduced from the fact of selling goods, providing
services, maintaining office or store or entering into
contract with someone or committing a tortuous act
within the state.
It is equivalent to a territorial presence in the state.
It justifies the state’s exercise of sovereignty over the
non-resident.
Minimum Contact Theory

15. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Zippo Manufacturing v. Zippo
Dot Com., 1997
The Federal District Court of Pennsylvania in this
case held that the defendant satisfied the
minimum contacts rule criteria as they had entered
into agreements with various internet access
providers within the state of Pennsylvania, through
which they had established minimum contact and
also had satisfied the test under the long arm
statue of the State of Pennsylvania. Hence they
could successfully be brought under the jurisdiction
of the state of Pennsylvania.

16. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
International Scenario
• France : VEJF and LICRA v. Yahoo! Inc., 2000:
In the year 2000, French court prevented Yahoo!
Inc. from selling WWII and Nazi related
memorabilia online. The court held that as
internet users in France were able to access this
site, it was a felony according to their national
laws. The court also ordered Yahoo ! Inc’s US site
to have filters in order to prevent it being
accessed from France.

17. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
International Scenario
• European Court of Justice: Shevill and Others v.
Presse-Alliance SA., 1992. :
The ECJ held that where the Brussels convention of
1988 applies, a defamation action may be brought
both where the publication occurred and where the
claimant suffered damage to his reputation. The
latter place is most likely to be interpreted as where
the defamatory statement was read, i.e., the location
of the viewer.

18. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
International Scenario
• Australia: Dow Jones & Co. Inc. v. Joseph Gutnick.,
2002. :
The Australian court is this case held that the place
of publication is to be the point of downloading. The
court considered that the focus of defamation is
upon the damage which it causes to reputation. And
also that a defamation can only cause such harm
when ‘comprehended by the reader, the listener, or
the observer’, thus publication of a defamation is a
bilateral process which can only be complete once
the publisher has made the article in question
available and it is available for perusal by a third
party.

19. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Indian Scenario
• World Wrestling Entertainment, Inc. v.
M/s/ Reshma Collections., 2013.
This case, involved a plaintiff company incorporated
under the laws of the State of Delaware, USA
engaged in the business of licensing and sale of
branded consumer products. The defendant was a
company incorporated in Mumbai, which sold
duplicated products of the plaintiff.

20. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Indian Scenario
The Delhi High Court laid down that jurisdiction in
e-commerce cases involving trademark and
copyright disputes would be determined by the
buyer’s place of residence.
The Court also opined that plaintiff could be said
to carry on his business to an extent in Delhi and
therefore, fulfilled the condition “carrying on
business” as laid down in Dhodha case. The Court
was of the view that “due to advancements in
technology and the rapid growth of new models of
conducting business over the internet, it is
possible for an entity to have a virtual presence in
a place which is located at a distance from the
place where it has a physical presence.

21. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
• E-commerce is an important avenue of the world
economy today. Hence jurisdiction in cyberspace
requires a clear international approach.
• The Indian E-Commerce scene is developing at an
unprecedented pace.
• Hence, the Indian scenario is bound to witness
more litigation in this specific field in the near
future and it is of great importance that the
judiciary explores and interprets the unexplored
grey areas in this field.
Conclusion

22. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Conclusion
• It will be help the Indian Judicial system to refer to
legal theories of other common law nations
where high protection for intellectual properties
exist.
• Laws of different nations need to be forged to
create an international substantive law, which will
make judicial proceedings easier on a global stage.
• This approach could shift the emphasis to the
determination of law rather than the territorial
uncertainty.

23. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Thank you