Girnar Drags Bigbasket to Court: What Online Companies Need to Be Aware of?

Newly established online grocery store, Bigbasket has been dragged to court due to the violation of the ‘Royal’ trademark. Argued by Mumbai-based tea-producer Girnar Foods and Beverages Pvt. Ltd., they claim that Bigbasket has infringed its trademark by selling many similar items which include tea.

Two of the Bigbasket’s official entities - SuperMarket Grocery Supplies Pvt. Ltd. and Innovative Retail, have been drawn to Mumbai High Court. Girnar company profile includes producing a few tea brands with a lot of variants. Royal brand being a flagship for Girnar triggers such a hostile action. The tea producing company approached the court on 7th March 2018, while the hearing was held on June 18th.

Reportedly, the Bigbasket company directors chose not to respond when asked to comment. They pursued more time to respond to the case. A reply was filed by the Bigbasket company directors on 4th April. To this, Girnar put a response forth on 5th May.

The online grocery market is known to have high potential to shoot online trading to the next level. However, startups fail to recognize legal issues rising as they gain consumer base. The grounds on which these new companies attract buyers are sometimes unauthorized. Here are three things they must consider.

Firstly, the information and data collection of clients should be collected in a legitimately compliant process. Administration in a lot of countries has privacy laws and enforcement entailing to inform the people, before collecting their personal data. It is also necessary to notify them of the means that their information will be shared. Some authorities allow the people to probe and make required changes.

Furthermore, people should also be assured that the collected information will be kept private. Securing private data can be conducted through simple security mechanisms like SSL. It ensures transmitted data is protected.

Second, the intellectual property issues like trademarks and copyrights should be secured, for both the company and its competitors. Listing a trademark provides an authorized right to be the owner of particular titles, logos or designs. However, ensure that the company doesn't violate infringement laws before registering a trademark. An easy way to research information about competitors is through the use of Tofler. It is a research platform for businesses that helps in managing business risks and provides information on competitors and industry wide companies. Or simply hire a lawyer to identify any breaking of a law.

Lastly, misleading advertisements should be banned as they affect the customer behaviour. Advertisement standards must be met by placing a fair product description and promotion. The anti-spam law requires a company to use honest and relevant subject titles, confirm actual location, unsubscribe from mailing lists and put up ethical header data.

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