Delhi techie snags JioHotstar domain; sparks legal drama with Reliance

The internet erupted when news broke that a Delhi techie had cornered Reliance, by securing the domain name JioHotstar.com, asking the company to fund his Cambridge tuition in exchange. The move sparked mixed reactions, with some supporting him and others accusing him of ‘cybersquatting’.

With the much-anticipated JioCinema and Disney+ Hotstar merger, while official plans for the merger remain under wraps, reports hint at a single streaming platform named JioHotstar. However, the sudden domain snag might just complicate those plans.

Although the domain name JioHotstar.com now displays a simple 'thank you' banner with a note of acknowledgement, those who visited just a day or two earlier found a different message: 'JioHotstar: Best of Entertainment, Streaming Soon.' Despite its bold message, the page lacked any logos or branding, maintaining a bare-bones look. The page did, however, include a message from the domain’s new owner, addressed directly to the “dear executive of Reliance Industries” (the parent company of JioCinema). 

The message reads:

What did the techie want?

In an interview, the developer expressed willingness to sell the JioHotstar domain, provided the company funds his dream of studying at Cambridge University. “I checked for the domain, and it was available. I was excited, as I felt that if this happened, I could fund my goal of studying at Cambridge,” they explained, sharing that a project of theirs had previously been selected for Cambridge University’s Accelerate program, yet financial constraints prevented them from pursuing further education there. “Cambridge also offers a full degree program in entrepreneurship, which I’ve always dreamed of pursuing but could never afford. It's Cambridge, quite expensive. When I saw this domain become available, I felt things might just fall into place. My intention of buying this domain was simple: if this merger happens, I might be able to fulfil my dream of studying at Cambridge," the message reads.

The developer has also called on both Viacom and Reliance Industries to contact them "with an official letter attached, stating your authorisation to purchase" the domain name. The note concludes, “For a multi-billion dollar company like Reliance, this will be a minor expense, but for me, the sale of this domain would be truly life-changing.”

In the interview, when asked how hopeful he was that Reliance would actually pay him Rs 1 crore, he responded, "See, I am well aware that I am but a small fry in front of the corporate giant that is Reliance. They will probably snatch the domain I registered in 2023 without paying me a penny. I know they have the clout and legal might. But I hope they don't do that. I have not done anything wrong or illegal. Jio is a brand, Hotstar is a brand, but ‘JioHotstar’ is not a legal entity as of today, let alone in 2023, when I registered this domain.”

A hostage situation or did he just cross a line?

Although this could be an ideal moment for Reliance to gain a few brownie points by accommodating the techie's request, some on the internet have framed his actions as 'cybersquatting,' even likening the situation to a hostage standoff. However, that’s only one side of the story. But Reliance, in fact, was not amused by this move, at all. 

In his interview, the techie said, “Yes, I spoke to a Reliance representative on a Zoom call, but he did not offer me anything apart from the few thousand rupees I spent registering the domain. They were curt and hung up abruptly when I refused to disclose my identity and declined their ‘offer.’ They also warned me of legal consequences, which is sad. The amount I asked for my studies is half of what Aakash Ambani gifted as expensive watches during his wedding. For such a big company, this is peanuts.”

These peanuts seem to have sucked him into a whirlwind of trouble, and what started out as a dreamer trying to achieve his dreams, seems like it has landed him in a legal nightmare with Reliance proceeding with legal action. This was revealed in his last update. 

Is he 'Cybersquatting'?

In simple terms, Cybersquatting is the practice of registering, buying, or using a domain name with the intent to profit from the reputation of a well-known brand or individual. Typically, cybersquatters choose domain names that are identical or confusingly similar to the names of established trademarks or public figures, hoping to sell the domain back to the rightful owner for a profit. This practice is widely viewed as unethical and, in many jurisdictions, illegal under trademark law, particularly if the domain was registered with malicious intent to exploit the brand's value.

As a signatory to the World Intellectual Property Organization (WIPO), India follows the Uniform Domain-Name Dispute-Resolution Policy (UDRP) process to protect trademarks from such misuse. India also enforces the Indian Domain Name Dispute Resolution Policy (INDRP), developed to meet UDRP standards and overseen by the National Internet Exchange of India (NIXI) for '.in' domains. For example, YouTube used INDRP to reclaim www.youtube.co.in from an unauthorised registrant.

IN Dispute Resolution Policy (INDRP)

Administered by NIXI (National Internet Exchange of India), the INDRP covers all “.in” domains and provides trademark holders a framework to address cybersquatting. To succeed in a dispute under INDRP, the complainant must demonstrate:

Similarity: The domain name is identical or confusingly similar to their registered trademark. ( In this case, Jio and HotStar are trademarked)
Lack of Rights: The domain owner has no legitimate interest or rights in the domain name. ( In this case, his only interest is to sell it)
Bad Faith Registration: The domain was registered with the intent to profit from the trademark’s reputation or harm its goodwill. (In this case, it could be extortion)

Examples of Bad Faith Use

Common scenarios of bad faith include attempting to sell the domain to the trademark owner at a high price, redirecting traffic to a competitor, or using the domain to mislead consumers.

If these elements are proven, NIXI may order the transfer of the domain name to the rightful trademark owner, helping protect brands from misuse in the digital space.

What happens now?

If Jio and Disney+ Hotstar have registered trademarks for their respective services, they hold the exclusive rights to use those brand names in connection with their offerings. This registration would provide them with a strong legal foundation to assert ownership and prevent others from using or registering similar names. However, if 'JioHotstar' is not currently registered as a trademark, it might still benefit from the protections afforded by the existing trademarks of Jio and Disney+ Hotstar. 

In such a scenario, they could still pursue legal action based on the likelihood of confusion and the association of the domain name with their established brands. The resolution of this issue would ultimately hinge on the specifics of the trademark registrations, the intentions behind the domain registration, and the legal arguments presented by both parties.

If Jio and Disney+ Hotstar have not yet registered the 'JioHotstar' trademark, they might find it more challenging to claim ownership. Nevertheless, they could potentially send a cease-and-desist letter to the individual who registered the domain, urging them to relinquish it based on the argument that it could confuse consumers or dilute their brand reputation. Without a formal trademark registration for 'JioHotstar,' however, their position may be weaker, and the outcome would depend on how the law interprets the situation and the evidence presented regarding intent and confusion.

How to not be a 'cybersquatter'?

To avoid being classified as a cybersquatter in India and to steer clear of potential legal trouble, individuals and businesses can adopt several proactive measures when registering domain names. Here are some key strategies:

Conduct thorough research

Before registering a domain name, conduct a comprehensive search to ensure that it does not infringe on existing trademarks. Use resources like the Trademark Registry of India to check for registered marks that are similar to your intended domain name.

Avoid confusingly similar names

Choose domain names that are distinct and do not closely resemble established brands or trademarks. This includes avoiding variations that could cause confusion among consumers.

Register your own trademarks

If you have a unique brand or product name, register it as a trademark with the Trademark Registry in India. This establishes your rights to the name and can protect you against claims of cybersquatting.

Consider defensive registrations

If you own a trademark, consider registering multiple variations and extensions of your domain name to protect against potential cybersquatters.

Use a domain name with clear Intent

Ensure that the domain name you register aligns with the goods or services you offer. Avoid registering domains solely for the purpose of reselling them to trademark owners.

Maintain a legitimate business presence

If you own a domain name, use it actively for legitimate business purposes. A legitimate website helps establish your rights to the domain name and demonstrates good faith.

Educate yourself on 'Trademark Law'

Familiarize yourself with trademark laws and the implications of cybersquatting. Understanding the legal landscape can help you make informed decisions when registering domain names.

Engage legal expertise

Consult with intellectual property attorneys if you are unsure about the legality of a domain name. They can provide guidance on trademark searches and help you navigate potential disputes.

Respond to complaints promptly

If you receive a cease-and-desist letter or any legal notice regarding a domain name, respond quickly and professionally. Engaging with the trademark owner may lead to a resolution without litigation.

Use dispute resolution mechanisms

Be aware of the Indian Domain Name Dispute Resolution Policy (INDRP) and the Uniform Domain Name Dispute Resolution Policy (UDRP). If a dispute arises, these mechanisms provide structured processes for resolving domain name conflicts.

Act in good faith

Always register domain names with the intent to use them in good faith. Avoid any actions that could be perceived as attempting to profit from someone else's trademark or brand reputation.

The world of domain registration can be intricate. It's not as straightforward as it seems, and the line between ambition and exploitation can be thin. The last message on the website JioHotstar.com which was posted by the techie states that he is backing down from his demands, especially since he is been met with legal action. 

While the techie's aim of using the domain as leverage for education funding stirred a mix of public sympathy and backlash, it has also highlighted the potential risks of cybersquatting. Reliance's swift legal response shows how seriously corporations protect their brands and trademarks. As the domain's owner backs down in the face of legal pressures, this case serves as a reminder for individuals to tread carefully and ethically in an era where internet domains can quickly turn into high-stakes battlegrounds.