The Firm successfully defended the prominent e-commerce platform operator, Shopee Mobile Malaysia Sdn Bhd, in a suit filed by A & M Beauty Wellness Sdn Bhd after a full trial on matters pertaining to trademark infringement, unlawful interference of trade and obligation to disclose users’ data.
Summary
In summary, the High Court found that:
1. On the issue of trademark infringement, the Court held that the Plaintiff had no locus standi to maintain the action for trademark infringement as at the time the suit was filed, the Plaintiff was not the registered proprietor of the trademark in question.
2. The Plaintiff’s cause of action based on unlawful interference with trade failed; recourse, if any, should be sought against the sellers of the products in question.
3. Shopee, as the platform operator, does not have possession or custody of the products in question.
4. The Plaintiff’s complaint against Shopee was essentially to require Shopee to enforce the Plaintiff’s distribution rights against its members / distributors; Shopee has no obligation in law to do so; and
5. Shopee has no obligation to disclose information of platform users to the Plaintiff.
Conclusion
There are limited authorities in Malaysia on matters involving ecommerce platforms and the obligations of the e-commerce platform operator for products sold on its platform. This case seeks to answer many of the issues arising. It was determined after a full trial canvassing factual and legal issues and sets a good precedent for e-commerce platforms.
An earlier attempt by the brand owner to injunct the sale of its products online on the Shopee e-commerce platform was rejected. (A & M Beauty Wellness Sdn Bhd v Shopee Mobile Malaysia Sdn Bhd [2021] MLJU 65; [2021] 1 LNS 84). The write up on the interim injunction decision can be accessed here.
Shanti Mogan, Lilien Wong, Yiew De Quan & Cassandra Oh of Messrs Shearn Delamore & Co acted for Shopee.
