Punitive compensation on website

The Delhi high court last week imposed a punitive fine of ~20 lakh on a website that sold damaged and counterfeit goods of various companies on a large scale. The order was passed against 99labels.com on a complaint of Burberry Ltd. The company, which designs, manufactures and sells luxury goods, complained that the website sold spurious goods using its trade marks registered in India and abroad. The judgment stated that the illegal act of the website had eroded the goodwill and global reputation of the company built over many years. Therefore, it was entitled not only to compensation but also punitive damages.