Delhi High Court Curbs Forum Shopping in Intellectual Property Litigation
Courts reject convenience-based jurisdiction claims for brand infringement cases lacking genuine local connections.
1Judicial Crackdown on Jurisdiction
The Delhi High Court recently returned 17 intellectual property suits, signaling a firm stance against forum shopping. Justice Purushaindra Kumar Kaurav emphasized that companies cannot select the national capital as a default venue simply for convenience. This ruling challenges the practice of litigation tourism where plaintiffs exploit perceived jurisdictional advantages without genuine ties.
2Defining Genuine Business Connections
The court clarified that mere accessibility of websites or online product availability in Delhi does not establish legal jurisdiction. Plaintiffs must demonstrate that defendants actively target customers within the city. Simply arranging test purchases through investigators to create a jurisdictional hook is now considered an unfair and unjust legal strategy.
3Impact on Major Corporations
Prominent brands including Nivea, Marico, Zydus Wellness, Kajaria Ceramics, and JSW MG Motor India were affected by this order. These companies previously attempted to leverage Delhi’s courts for disputes involving entities based in regions like Gujarat or Visakhapatnam. The court rejected these attempts to disturb the natural flow of litigation.
4GST Registration Insufficiency
Many plaintiffs argued that having a GST registration or a principal place of business in Delhi granted the court authority to hear their cases. The bench explicitly rejected this, stating that a GST registration alone does not prove that a company carries on business in the city to justify local litigation.
5Shift in Litigation Strategy
Companies must now provide robust evidence of actual sales and sustained business activity within the state where they file lawsuits. This ruling forces legal teams to rethink their filing strategies, moving away from convenient forums toward jurisdictions where the dispute has a tangible, verifiable connection to the parties and events involved.
6Context of Delhi IP Division
The Delhi High Court established a specialized Intellectual Property Division in July 2021, which became fully operational by February 2022. This division significantly boosted the city's status as a hub for IP disputes, handling thousands of cases including deepfakes, copyright violations, and trademark infringements, often processing hearings much faster than other regions.
7Data on Jurisdictional Trends
Between January 2021 and July 2026, Delhi received 4,263 IP suits, significantly outpacing Mumbai’s 3,076 cases. Data indicates that 97% of Delhi's IP cases received first hearing orders within a week, compared to only 21% in Mumbai. This efficiency likely incentivized companies to prioritize Delhi, leading to the current judicial intervention.
8Future Legal Implications
This decision does not bar companies from using the Delhi High Court when a legitimate connection exists. It serves as a corrective measure against the intentional manipulation of legal venues. Moving forward, businesses must prioritize territorial accuracy in their filings to ensure their intellectual property claims are heard by the appropriate courts.