Gurugram court orders Rs 55 Lakh damages for Microsoft in trademark infringement case

A Gurugram-based commercial court gave Microsoft Rs 55 lakh in damages after a company, Retnec Solutions Pvt Ltd, was found guilty of trademark infringement and fraudulent call-center operations using Microsoft’s trademarks.

According to media reports, the court held the company responsible for misusing trademarks such as 'HOTMAIL', 'OUTLOOK' and 'OFFICE 365' in a scheme that misled customers into believing they were receiving legitimate technical support from the tech giant. In addition to the damages, Additional District Judge Mahavir Singh issued a permanent injunction against Retnec Solutions, barring them from further misuse of Microsoft’s trademarks.

The court also ordered the destruction of all infringing materials, including promotional content, call scripts and any business-related documents bearing Microsoft’s logos. Moreover, punitive damages were awarded to Microsoft for the reputational harm caused by the fraudulent operations.

The court ruling specifically directed Retnec’s directors and affiliates to pay a total of Rs 55 lakh, with Rs 50 lakh being allocated as damages and Rs 5 lakh as punitive damages. Furthermore, Microsoft was granted Rs 20.6 lakh in litigation costs.

The case arose after Microsoft Corporation and its Indian subsidiary filed a suit against Retnec Solutions for trademark infringement, passing off and unfair trade practices under the Trade Marks Act, 1999. Microsoft accused Retnec of impersonating Microsoft representatives, using their trademarks to run fraudulent technical support services targeting unsuspecting consumers.

Victims of the scam were contacted via cold calls, pop-up messages and scare tactics claiming the victims’ computers were infected with malware or viruses. Microsoft contended that these activities led to significant financial losses and severely tarnished their global reputation.

As per the media reports, investigations revealed that Retnec operated a fraudulent call center in Gurugram and was working with other entities to carry out the fraudulent activities. Microsoft received over 7,07,000 complaints worldwide, some of which directly linked the defendants to the scam. In 2018, the Gurugram police raided Retnec's premises, seizing digital evidence, including invoices, payment records and fraudulent scripts detailing the methods used to deceive customers.

The court’s ruling serves as a strong deterrent against the misuse of intellectual property and fraudulent schemes that harm both consumers and businesses. Microsoft, represented by Advocates Prashant Gupta, Karan Singh and Alok Ahlawat, expressed satisfaction with the judgment. Meanwhile, no representation was made for Retnec Solutions in the court proceedings.