Justice NG Nandi, in an ex-parte order, directed Ramada Soft to transfer the domain name "drreddyslab.com" to pharmaceutical company with all impugned materials including brouchers, stationary and other printed matters.

The order was issued following a suit by Dr Reddy's Laboratories alleging that the Hyderabad-based firm Ramada Soft by using its domain name had harmed its business. The court said using of the domain name of Dr Reddy's Laboratories by Ramada Soft for Internet-related service or business "May lead to dilution of distinctiveness of the trade mark" of the former.

Counsel for pharmaceutical major Pravin Anand described the judgement as historic, saying "for the first time in India, a court has ordered the transfer of domain name from one entity to another".

Earlier, in all the orders related to the infringement of domain names, the court had only restrained the parties from using it, he added. The pharmaceutical company in its suit had alleged that Ramada Soft, "which is in the business of registering domain names in India appears to block well-known trade marks and even names of well known personalities on the Internet and sell them for large amounts to others". Dr Reddy's Laboratories alleged that the practice of blocking and selling the popular trade marks was being used by several cyber squatters for commercial benefit in "unfair and unethical" manner.

The petitioner's counsel said domain name was of vital importance in e-commerce and akin to the trade mark in normal business.

The domain name "www.drreddyslab.com", used by Ramada Soft, which is deceptively identical to the trade mark "Dr Reddy's" of the petitioner, was likely to cause damage to its business, goodwill and reputation.

Anand said the trade mark "Dr Reddy's" of the petitioner and domain name "drreddyslab.com" of the defendants were similar except for the use of suffix'lab.com' by the latter and there was every possibility of an Internet user being led to believe that both belonged to the pharmaceutical company.

He said domain names on Internet are registered on "first-come first- served" basis.

However, the pharmaceutical company admitted that the Dr Reddy's trade mark has not yet been registered under the trade and merchandise marks act though it had applied for the same.

(PTI)