The National Stock Exchange (NSE) has dragged global domain name registrar GoDaddy and a Hyderabad-based technology firm to
the Bombay high court over alleged copyright and trademark infringement of its
software.
The case
relates to NSE’s online trading platform NOW, which allows its subscribers to
view and use its database and analysis based on primary data, to execute trades
in real time, for a fee. The platform has over 500,000 subscribers.
In its
plea, NSE, along with its group firm DotEx International Ltd, has alleged that
Hyderabad-based Manshi Systems had been allowing customers to access the NSE
Now platform and data available on it via its own software at prices far lower
than those charged by NSE.
This is
being done without authorization from the stock exchange, it said.
The
website of Manshi Systems is hosted by the Indian arm of GoDaddy Operating Co. Llc, making both parties to
the case.
“The
plaintiffs have filed the suit for the wrongful acts of infringement of
copyright in computer database, wrongful use of primary data, and compilation
of database and trademark infringement...,” stated the petition, a copy of
which has been reviewed by Mint.
Hearing
on the petition, which was due to take place on Tuesday, was adjourned until 28
April.
DotEx
International converts raw market data into various statistical formats for
trade analysis and execution of trades on NOW. It is also the owner of the
compiled data or computer data base. Apart from providing real time data feed,
the NOW terminal offers its subscribers services like calculation tools,
customizable alerts, hourly statistics, security information and trade analysis
derived from transactions on NSE.
According
to the petition filed by NSE, computer database is an “original literary work
within the meaning of the Copyright Act 1957” and any unauthorized use of such
work is illegal.
While the
website has been pulled down temporarily, GoDaddy still remains the registrar.
GoDaddy is the world’s largest domain registrar with 57 million domain names
under its management, according to the firm’s website. The registrar hosts most
of the leading e-commerce websites in India such as Flipkart, Myntra, Jabong and Snapdeal.
Rajiv Sodhi, vice-president and managing director
of GoDaddy India Domains and Hosting Services Pvt. Ltd,
declined to comment on the case, saying the company does not speak on
litigations.
An email
sent to Manshi Systems did not elicit a response. Phone calls to the company
were not answered.
Launched
in 2008, NOW subscription was offered for free till November 2012. Since then
NSE has been charging a subscription fee from its customers. It also has eight
trademarks containing the expression NOW.
According
to Manish Saurastri, a partner at Krishna and
Saurastri Associates and a lawyer representing NSE in the case, Manshi was
selling its software ManshiRT to its clients for downloading NSE’s NOW. NSE’s
spokesperson declined to comment for this story.
Saurastri
said, “This is probably the first case in the high court that deals with
copyright, trademark infringement of a real time database. The outcome will set
a precedent for all such cases.”
Experts
said GoDaddy could be liable under the Information Technology (IT) Act, 2008.
Pavan Duggal, a cyber law expert, said, “Both the
companies (GoDaddy Llc and GoDaddy India) are covered under the IT law as intermediaries.
All intermediaries are mandated to exercise due diligence while discharging
their obligation under the law. Here the onus will be upon the intermediaries
to prove in the court that they had exercised due diligence to safeguard
against copyright infringement.”
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