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In the rising culture of Startups and Small businesses, one thing that cannot be avoided is a rising number of legal disputes. Even the Giant Startups are not free of legal disputes. Startups and Small Businesses that are aware of something like this happening under conscious minds, you are definitely taking the risk and it is the time you take a legal opinion from experts. The Startup Legal Disputes that stole highlights are:
  1. Zomato vs Burpp in 2011
Issue: Data Theft Zomato accused Burrp of copying data and contact details exclusively available for Zomato?s use and published under a special contract. Dispute resolved out of the court since in India, IPR protection for contact no. and address is available for Yellow Pages only.
  1. Bluegape in 2014
Issue: Copyright Infringement Bluegape a student-run startup selling customized products had to close its business down when it sold some copyright designs knowing them to be so on e-commerce websites as Flipkart, Snapdeal etc.
  1. Online Drug Selling Issue in 2015
Issue: Selling Drugs without due permits Prescription drugs which under the Drugs & Cosmetics Act, 1940 Sec. 18 (C), read with Rule 65, can only be sold by a licensed retailer that too on the basis of a doctor’s prescription. such as Ascoril cough syrup and Vigora tablets were sold on Snapdeal. The notice was issued to it. Shopclues and Amazon were also found guilty of same. All three removed the products.
  1. Oh My Secrets in 2014
Issue: Abetting Gay sex Snapdeal along with Ohmysecrets! was taken into court for selling of Vibrators and other products. Such a hue arose that Flipkart and others removed the products from Sexual Wellness Category.
  1. QIKPOD in 2016
Leapmile Logistics Pvt Ltd vs Mr. Neeraj Ray Issues: Equity issues among founders Ravi Gururaj and Neeraj Ray Neeraj Ray sued Ravi Gururaj for not giving him promised equity shares for a product jointly developed called MERA LOCKER. Case in Evidence Stage in a court of Additional City Civil and Sessions Judge, Bengaluru.
Issues: Trademark Infringement Houzz a US based company with a similar business nature before launching its business in India filed trademark infringement against India based Startup Houzify claiming deceptive similarity between the trademark Houzz and Houzify/Housify. Facebook page of Housify was put down on request from Houzz Housify filed reply for trademark opposition. Agreed to change its fonts. Claimed Houz is a generic word.
Issue: Trademark Infringement E-commerce Giant Flipkart sued Flipkart Discounts, a site providing details of Discounts available on E-commerce sites and directing Customers to other sites, for trademark Infringement and Dubious Business Tactics.
  1. PAYPAL vs PAYTM in 2016
Issue: Trademark Infringement PayPal, a global giant opposed the trademark of Paytm on 18 November 2016, last date of four months period allowed, after trademark application was sent to be registered. Case to be argued in Court.
  1. ERICSON vs XIAOMI in 2016
Issue: Patent Infringement Ericson sued Xiaomi for patent infringement of 8 of its patents and was able to put the injunction on the sale of some of its phones. Delhi HC revoked the stay on sales and found that Qualcomm acquired the patents and Xiomi is paying to Qualcomm for patents. Not yet decided.
  1. Small Startups vs Big ones
Issue: Trademark Name Disputes Many major startups are complaining about smaller competitors copying their brand names.? Some suits regarding Trademark of name pending in court? are:
  • v
  • Groffr v Grofers
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  • Indian Trading League v Indian Advisory League
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  1. UBER vs OLA in 2016
Issue: Faking data Uber alleged that Ola used fake customer accounts to book rides and then canceled it resulting cancellation expenses being borne by them. Case pending in court for unethical trading practices.
  1. INNERCHEF vs FreshMENU in 2016
Issue: Trademark Infringement Innerchef accused fresh menu of using their name in its Google ads without prior permission. Fresh menu apologized on twitter for same and put down the ad.
Issue: Illegal use of Brand Name Similar to the dispute between Innerchef and Freshmenu, OYO and Stayzilla entered into a dispute for illegal use of Stayzilla’s name in Google AdSense. Resolved after OYO apologized and agreed to look into the matter and put down the ad.
Issue: Licenses Section 93 of Motor Vehicles Act, 1988, states no one is allowed to engage himself as an agent or canvasser and solicit customers for public service vehicles like taxis. Hence no license was granted to operate Uber Bike in Bengaluru thus a legal battle.
  1. OYO vs Zostel in 2014
Issue: Software Theft Oyo Rooms produced evidence such as emails, CCTV footage, and theft of its ‘software’ by few of its own employees who apparently left to join Zostel. The High Court in its stay order dated April 21, 2015, barred Zostel which recently started budget hotel aggregation business ‘Zo Rooms’ from using ‘confidential information and software’ of Oyo Rooms. The dispute ended as Oyo bought Zostel in all Stock deal in the end of February 2017.
  1. OYO vs NOESIS in 2015
Issue: Dispute regarding non-payment of dues. Noesis filed a windingUp Petition against OYO for payment of Rs 1 Crore. Oyo states that terms of Contract not completed. Case pending in court.
  1. Stayzilla
Issue: Contracts The case that stole the highlight of the year and was in news for all the wrong reasons was regarding non-payment of dues which resulted in the arrest of the founder and leveling of criminal charges against him. The judge has suggested Mediation to solve the dispute.

Wazzeerians have been helping organizations like yours to get in touch with best lawyers and Accountants for years now, we would be glad to help you, let us know. Thanks! 🙂

Legal, Litigation
The legal atmosphere of the country is rising with Amazon recently filing a case against Gujarat state government for imposing Entry Tax. This is a tax which is levied on products or goods which has been purchased online and is delivered from outside the state.

According to a new report by ET, Amazon is only a facilitator, it’s an online portal where buyers and sellers meet, and it itself doesn’t import or consumes any product, and the company as such has nothing to do with the goods.

However,Gujarat government has a different take on thisIt believes that this tax will protect offline retailers from competitive discounts that online sellers offer, thereby taking edge over them. Ecommerce in India is projected to reach $119 Bn in next 4 years. As per Nasscom, creating such barriers will not only impact the financials of the ecommerce companies but also restrain new and foreign players from entering into the market.

The market is already trying to cope with burgeoning losses, low investor sentiments and rising consumer expectations in terms of delivery and quality. It is a summarization of an article from INC42. For more information visit,

Wazzeer is vouched by Entrepreneurs as the most reliable Legal and Accounting Partner. We would be super excited to help you. Let’s Connect! 🙂

Legal, Legal notice, Litigation
Did you send a legal notice to resolve your dissatisfaction on the product/service purchased and did not receive any response?

Fret not.

Your Service/Product provider has already done a grave mistake by not taking your complaint seriously and have actually given you all the rights to get compensation for failing to perform his duty of providing you a quality product or service.

You first consider this check list.

Have you informed the service/product provider about the issue?

Have you escalated the issue to the manager/CEO by sending a mail/letter specifically to them?

Have you warned them that failure to respond to your queries may result in a legal suit?

Have you sent the legal notice to the service/product provider through registered post?

If the answer for all the above questions is a Yes, then don’t worry the service/product provider is legally bound to respond within 21 working days. Failure to which you just need to document the entire process and provide it as proof to court that you used all means available to settle the issue amicable outside the court but was shrugged off by the service/product provider.

This will result in a ruling in favour of your complaint and now service/product provider is legally bound to provide you that compensation with complete satisfaction of terms and conditions of the judgement of the court in both letter and spirit.

If the service/product provider fails to follow the judgement in both letter and spirit then it becomes a case of contempt of court and the service/product provider will face criminal proceedings which will be a costly affair to the service/product provider.

Wazzeer is vouched by Entrepreneurs as the most reliable Legal and Accounting Partner. We would be super excited to help you. Let’s Connect! 🙂

Legal, Legal notice, Litigation

Received a Legal notice, Ask yourself following questions to figure out what needs to be done:

What is a Legal Notice?

Legal Notice is a document that puts allegations on the defendant (Receiver of Notice) contained within the complaint. In simple words, Legal Notice is an intimation given to the defendant by the complainant about the complaints on defendant.

What is our next step?

The Legal notice must contain the complete details (Full Name and Postal Address) of the complainant. Check the details and ascertain who the complainant is. This is important in case of an out of court settlement or if the notice is due to some confusion from the complainant’s end. Then check what are the allegations levelled against you (defendant). Then you can decide on the course of action you need to take. It is very important for you to understand the charges levelled against you. If you did not understand any term in the notice you need to make all the efforts to understand it including and not limited to consulting a trustworthy lawyer.

Is reply to a Legal Notice necessary?

No. Replying to a legal notice is not a requirement under law. Courts won’t pass an ex parte decree (A decree passed against the defendant in absentia) automatically for not replying to a legal notice. The importance of a legal notice would end as soon as the Court proceeding starts. Only when you don’t appear in a case despite serving summons on you, shall the Court pass an ex parte order/decree.

Why should I reply to a Legal Notice then?

Though replying to a Legal notice is not required under law, it is generally welcomed by courts. If you decide not to reply to a Legal notice, then this (the act of not replying to the notice) may be held against you in the court. They (Complainant) may state that you, not replying to the legal notice is the root cause of this case. This will result in you facing the wrath of the court even if you are not responsible for any of the complaints contained in the legal notice. So it is always advisable to send a reply to the legal notice.

How should you send a reply to the Legal Notice?

You need to be extremely careful in accepting/denying the allegation made in the legal notice. It completely depends upon your anticipation of future proceedings based upon undebatable evidences. The reply has to be sent within the time stipulated in the legal notice sent by the other party. If there is any delay in sending the reply the reasons for the same may be stated in the reply itself to avoid any misconceptions in complainant’s mind. It is very much advisable to send a reply to the legal notice through a registered advocate or take help from legal expert before deciding to reply to it on your own. A reply to the legal notice is a kind of undertaking by the defendant. If the reply is drafted poorly then it may be held against you in the court proceedings.

Shall I use a readily available template on the internet to reply?

Beware of many Templates that are available on Internet. Many Do-it-Yourself prescriptions have been spread across the internet to send a reply to a Legal Notice. But always remember that the facts of each case is different and you may not find a template that is most suitable for your case. Also, they can be useful if you have minimum knowledge on Legal procedures and terminologies. Otherwise sending a reply using such templates may very well backfire. Hence, a consultation with a trustworthy Lawyer is required. Only such a lawyer can give you proper advice on whether or not to reply to the Legal notice you have received and if at all you need to reply, how you can properly frame your reply such that it serves your purpose in the court of law.
For a trustworthy Professional advice on this matter Contact us.