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Unicommerce, an ecommerce management platform owned by Snapdeal, has been told by the Delhi High Court to stop using Paytm’s logo in Paytm’s font as well as edit a YouTube video in which the Paytm logo has been used (to remove the logo within a week). MediaNama has a copy of the court order which further states that Unicommerce will not be able to use Paytm’s trademarked logo in a normal font for anything other than describing Paytm.

Can’t use seller info for itself
With regards to Paytm’s accusation of Unicommerce accessing information related to Paytm’s sellers, the Court ruled that Unicommerce should not access this information, neither use the info for itself. A Paytm spokesperson told MediaNama that “Unicommerce has been instructed not to access customer and seller data which was being used to sign up sellers for our competition. They have also  submitted that they will not derive any information such as sales analysis or user behaviour for any misuse. This is an important point since this data might have been used unduly by our competition.”

Share info with sellers when they access Unicommerce site
The ruling further stated that seller info should be made available exclusively to sellers when they access Unicommerce’s site. A Paytm spokesperson said, “According to the court order, our sellers can only view this information and not submit anything such as catalog info, inventory, pricing or create order processing or catalog changes in Paytm’s systems, preventing any change happening to Paytm’s data and systems.”

Unicommerce can only link to Paytm systems
Unicommerce, in its argument, stated that it was not ‘crawling on the (Paytm’s) site’, to which Paytm said that Unicommerce now won’t be able to crawl on its site to get site and panel info. Paytm added that Unicommerce can now only give links that provide access to Paytm systems to the merchant.

Unicommerce said that it was merely accessing Paytm’s site as representatives of its own customers (sellers on Paytm) on their authorisation. “This ruling is clear in stating that Unicommerce cannot fetch information from our system but can only direct sellers to Paytm. The court has instructed Unicommerce to remain bound by this condition,” Paytm added.

Note: Unicommerce is denying that it used Paytm’s logo since December 2015 and also states that Paytm’s claim of Unicommerce accessing its seller information is denied by the High Court, when in fact the Delhi HC’s order clearly states that it has been denied from doing so.

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Unicommerce says it’s doing nothing wrong
Interestingly, Unicommerce’s statement states that the court has permitted it to ‘continue with its services to sellers’ and that ‘all interim injunctions sought by Paytm were denied by the Hon’ble Court in its interim order dated 21.04.2016’.

The company says:

– Paytm’s plea to restrain Unicommerce from using the word “PayTM” was denied. Unicommerce was held free to use the word PayTM in normal font, should it so desire.

– Paytm’s plea for an injunction against the use of its logo wasn’t granted since Unicommerce confirmed in court that it had discontinued the use of the Paytm logo since December 2015. It agreed to be bound by its current practice and not use the same in the future as well.

– An old YouTube video with the logo was cited by Paytm and Unicommerce agreed and has removed the logo from the said old video.

– Paytm’s plea to restrain Unicommerce from accessing information derived from its sellers was denied. The Court found no reason to change the status quo of Unicommerce accessing the seller data as a representative of the seller and making such data available back to them. Unicommerce clarified in Court that the seller data is accessed with the consent of the sellers in order to help the sellers improve their business and it does not use it for itself.

The matter has been listed for 11 July.

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Image Credit: Balu NT

Edit: This story has been updated with a note