In a major relief for National Stock Exchange of India Ltd (NSE), the Bombay High Court has directed social media intermediaries to take prompt action against the alleged deep fake videos of its Managing Director and Chief Executive Officer.
The high court directed the platforms such as Facebook, WhatsApp, Instagram and Telegram to remove / delete all accounts infringing upon the trademark of NSE. It also directed the platforms to take prompt action of removal / deletion, within ten hours, upon receiving any complaint against such fake videos and profiles where the plaintiff's trademark is infringed.
“The balance of convenience also lies in favour of the Plaintiff (NSE) and irreparable loss and / or harm will be caused to the Plaintiff, unless the ad-interim relief sought for is granted,” Justice Riyaz Chagla said on July 16.
The judge emphasised that under the Information Technology Rules, the social media intermediaries are mandated to take prompt action on the complaints received from entities such as the plaintiff (NSE) of their rights being violated by the unauthorised user of their trademark on dubious webpages and / or profiles, accounts and/or advertisement and/or videos and/or contents and/or social media groups.
The HC was hearing a suit filed by NSE claiming that the platforms featured a fabricated video of tier MD and CEO Ashishkumar Chauhan, allegedly generated using sophisticated AI technology to imitate the voice and facial expressions. It sought direction to these platforms to take down such content.
According to the NSE, certain unknown perpetrators have allegedly used its trademark and circulated false and misleading advertisements on social media platforms like Facebook, Instagram and WhatsApp. The video allegedly asked people to join a WhatsApp community where the company would allegedly recommend stock picks. It further assured of full reimbursement by NSE of losses caused to investors executing the suggested trades with diligence.
NSE had lodged a complaint with the cyber police in April. NSE’s counsel, Birendra Saraf, submitted that despite their complaints to the grievance cell of the social media intermediaries, no action has been taken against such deepfake videos and those who are infringing upon the trademark. This deceptive behaviour of the violators is capable of manipulating the markets and thereby resulting in unfair trade practices as well as violation of various SEBI regulations enacted from time to time, Saraf added.
The court also restrained any persons from infringing the plaintiff’s registered trademark “NSE". The intermediaries have been directed to file their affidavits giving details of all those accounts and the persons handling those accounts involved in publishing the Fake Videos and videos and content similar to Fake Videos/ or use of the Plaintiff’s registered trademark “NSE”. The HC has kept the matter for hearing on August 19.
