Delhi HC Rules Against E-Commerce Platforms

E-commerce platforms cannot become a haven for infringers of intellectual property and allow people to sell counterfeits, the Delhi high court has said, in an order laying down that "safe harbour" protections will not apply in such cases as it pulled up a shopping website.

"IIL's function is not limited to providing access to the communication system over which the information made available by the consumers who use the Indiamart platform is transmitted, stored or hosted. The sellers actually effect sale of their products across the Indiamart platform of IIL, and IIL pockets a part of the proceeds of such sales. The function of IIL, therefore, much transcends mere "providing" of "access". Clause (a) of Section 79(2) is, therefore, not applicable, " the court said, referring to the section of the Information Technology Act that pertains to safe harbour.