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Reliance Industries finds itself in a legal standoff

by VARINDIA 2024-10-25

Seeing the potential of making quick money to support his higher education, a Delhi-based app developer had purchased the domain name JioHotstar in anticipation of JioCinema and Disney+ Hotstar's proposed merger. The techie, who remained unknown, left a message for Jio's parent company, Reliance Industries, saying they were willing to sell the domain to them.

As this unnamed app developer is now demanding ₹1 crore in compensation from the conglomerate. The developer's actions have prompted Reliance to issue a legal threat, warning of serious consequences if the matter is not resolved.

It all started when a Delhi based app developer acquired the domain name 'JioHotstar'—a combination of the names of two major streaming platforms, Reliance's JioCinema and Disney+ Hotstar—anticipating that it might hold significant value as the two companies have been linked to possible mergers or collaborations. The developer is now demanding ₹1 crore as a settlement to transfer the rights to the domain name, a move that Reliance considers a form of extortion.

Reliance has responded forcefully, threatening to take the developer to court. The company argues that the domain name is an attempt to create confusion among users by linking the brands Jio and Hotstar, both of which are prominent in the Indian streaming market. Reliance has reportedly claimed that the app developer's actions could harm their business reputation and mislead consumers by making them think the domain is associated with their brand.

The situation could lead to a legal battle that will test the boundaries of intellectual property rights in India, especially regarding domain names and trademarks in the digital landscape. If the case goes to court, it may set a precedent for how companies can protect their digital assets and brand names in the future. Legal experts suggest that Reliance may pursue a case under the provisions of the Indian Trademark Act, which prohibits the unauthorized use of a name or brand that can cause confusion or deception. Cybersquatting, where individuals purchase domain names with the intent of profiting from trademarks owned by well-known brands, is also a major concern that many corporations face in the digital age.