A single judge HC bench directed Facebook, WhatsApp, Instagram and Telegram to remove all accounts and posts that infringe upon the NSE’s trademark
The HC also directed the social media platforms to remove all content flagged by the NSE within 10 hours of receiving a complaint from the stock exchange
The NSE moved the HC earlier this year after deepfakes surfaced online of its CEO and MD offering stock recommendations to users
The Bombay High Court (HC) has directed social media platforms to take down deepfakes that feature NSE’s managing director (MD) and CEO Ashishkumar Chauhan offering stock recommendations.
In an order issued on July 16, a single judge bench comprising Justice RI Chagla also directed digital intermediaries such as Facebook, WhatsApp, Instagram and Telegram to remove all accounts and posts that infringe upon NSE’s trademark.
“The plaintiff (NSE) has made out a strong prima facie case for grant of ad-interim relief sought… for infringing the Plaintiff’s (NSE) rights…. The balance of convenience also lies in favour of the plaintiff and irreparable loss and / or harm will be caused to the plaintiff, unless the ad-interim relief sought for is granted,” read the HC order.
The HC also directed the social media platforms to remove the content or deepfakes flagged by the NSE within 10 hours (not exceeding 14 hours) of receiving a complaint from the stock exchange.
In its order, the HC also affirmed that the social media platforms are bound by the Information Technology Rules to promptly act on content that violates the petitioner’s trademarks and rights on online groups or “dubious web pages”.
Arguing before the HC, NSE counsel Birendra Saraf said that the social media platforms failed to prevent the continued circulation of the content infringing upon NSE’s trademark. He also contended that “no prompt action” was taken by the social media platforms despite multiple complaints by the NSE.
“The videos further assure full reimbursement by Plaintiff of losses caused to investors executing the suggested trades with diligence. This deceptive behavior 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,” argued Saraf.
Agreeing with the contention, Justice Chagla granted interim relief to the NSE and restrained all persons from infringing the plaintiff’s registered trademark. The HC also directed social media platforms to file affidavits within three weeks, submitting the details of the accounts and their handlers involved in publishing such deepfakes.
The HC has listed the matter for next hearing on August 19.
At the heart of the matter are the deepfakes that featured NSE CEO Chauhan offering stock recommendations to users. As the fabricated videos went viral online, the stock exchange warned investors against the videos and moved the HC in April to take down and remove the unauthorised videos.
However, NSE is not alone in this. In the past, BSE too issued a circular expressing alarm over fake videos and audio impersonating its MD and CEO, Sundararaman Ramamurthy. Earlier this year, actor Ranveer Singh also lodged an FIR against an AI-generated deepfake video that featured him criticising Prime Minister Narendra Modi ahead of the general elections.
Meanwhile, the Centre has tightened its noose around such synthetic content and directed social media platforms to take proactive action against deepfakes. PM Modi even called for building a global framework to crack the whip on such fake videos and safeguard the AI space.
