1. INTRODUCTION
In the second round of litigation between E-commerce platforms
such as Amazon, Flipkart and Snapdeal ("E-commerce
platforms") and Direct Selling Entities
("DSEs") such as Amway, Oriflame and
Modicare earlier this year, a Division Bench of the Delhi High
Court overruled1 the decision of the Single Judge
whereby the E-commerce platforms were restrained from enabling sale
of products of DSEs without their consent.2 While
allowing the appeal, it was also held by the Division Bench that
Direct Selling Guidelines, 2016 ("DSGs")
are advisory in nature and the Single Judge had made a blunder in
holding them to be a binding law.
The principles of 'exhaustion of rights'3 and
the defence based on it4, which is available in cases of
trademark infringements under the Trade Marks Act, 1999
("TM Act") in India, have been
frequently discussed in the context of parallel importation of
goods in the country. However, in this interesting judgment that
decided an
