Fake Tech Support Call Centre: Gurugram Court Awards Rs55 Lakh to Microsoft as Damages in Trademark Infringement

Ratna Singh (Bar and Bench) 28 January 2025

Economy & Nation

A commercial court in Gurugram recently awarded Microsoft Rs55 lakh in damages after a company, Retnec Solutions Pvt Ltd was found guilty of trademark infringement and running fraudulent call-centre operations using Microsoft's trademarks, including 'HOTMAIL', 'OUTLOOK', and 'OFFICE 365'.

Additional District Judge Mahavir Singh issued a permanent injunction restraining Retnec from misusing Microsoft's marks, ordered the destruction of infringing materials and directed the payment of damages, including punitive damages for tarnishing the multinational's reputation.

"A decree for grant of damages along with punitive damages is passed against defendants no.1 to 3 directing them to pay an amount of Rs50 lakh to the plaintiffs and they shall be jointly and severally liable to pay this amount to the plaintiffs. iv) A decree for grant of damages along with punitive damages is passed against defendants no.7 & 8 directing them to pay an amount of Rs5 lakh to the plaintiffs and they shall be jointly and severally liable to pay this amount to the plaintiffs," the Court ordered.

The Court also held that Microsoft shall be entitled to get Rs20.6 lakh as litigation costs.

Microsoft Corporation and its Indian subsidiary filed the suit against Retnec for trademark infringement, passing off, unfair trade practices, dilution, and damages under the Trade Marks Act, 1999.

Microsoft, a globally recognised brand with trademarks for products like Windows, Office 365, and Xbox, alleged that Retnec impersonated Microsoft personnel and used their trademarks to operate fraudulent technical support services.

The defendants reportedly misled customers through pop-up messages, cold calls and unauthorised use of Microsoft's branding, causing harm to Microsoft's reputation and defrauding victims. Investigations revealed that Retnec Solutions operated a fraudulent call centre in Gurugram and was working in connivance with other entities.

Thereafter, Microsoft received over 707,421 complaints globally, some of which implicated the defendants.

In 2018, the Gurugram police raided the premises of Retnec Solutions, seizing digital evidence and arresting its directors, Zayed Sahaye and Akshay Anand.

Evidence included invoices falsely bearing Microsoft's logo, payment records linking the defendants and scripts found on computers at company's premises. These scripts detailed steps to deceive victims, including providing fake pop-ups and scare tactics about malware or viruses.

Microsoft argued that Retnec's actions caused financial losses, harmed their goodwill and amounted to large-scale technical support fraud. They sought legal remedies to restrain the defendants from continuing these activities and also sought damages of Rs2 crore.

After considering the facts, the Court ordered a permanent injunction against Retnec including their presidents, directors, affiliates, members, agents and anyone acting on their behalf.

The Court further directed Retnec to hand over all products and materials that use Microsoft trademarks (such as business brochures, promotional materials, sample call scripts, checks, etc.) for destruction.

Microsoft is entitled to recover their legal costs, including litigation expenses from defendants, the Court directed.

Courtesy: Bar & Bench

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