Delhi High Court restrains YouTubers from disparaging AI+ Smartphones and its CEO

The Delhi High Court recently passed an injunction in favour of Gurugram-based consumer technology company NxtQuantum Shift Technologies - operating the brand 'AI+ Smartphones’ - and its founder Madhav Sheth against disparaging online content.

The company had moved the Court against videos uploaded by YouTube channels TechWiser and TechBar, seeking to restrain false, defamatory and commercially disparaging statements against them.

Justice Tushar Rao Gedela observed that prima facie, the statements made by the YouTubers are not protected as fair criticism and border on disparagement.

AI+ Smartphone flagged the alleged defamatory content in the YouTube videos titled "This Indian Phone Is A Marketing Disaster!" uploaded on April 9 and another video titled ‘FAKE Indian Company - Needs to STOP" on April 24.

It stated that the videos make false allegations that the AI+ Smartphones harbour hidden apps, collect user data improperly and risk user privacy.

The Court went through the transcript of the videos and stated that the YouTubers appear to be “unfairly targeting” the company and its founder with unverified disparaging statements.

It stated that the videos do not disclose the basis for deriving such conclusions regarding the company’s products. It further observed that the YouTubers have made no technical examination or comparison of the company’s products with other mobile phone brands. 

“This untested and unverified analysis has the potential of causing financial loss to the plaintiffs. The essential elements required for the Court to prima facie find disparagement appear to be fulfilled. In such circumstances, this Court is of the prima facie opinion that the videos uploaded by defendant nos. 2 and 3  [the YouTubers] would be disparaging, which needs to be injuncted.”

Thus, the Court restrained the YouTubers from making any disparaging statements relating to  'AI+ Smartphones’ or Sheth on any social media and digital platforms.

The next date of hearing is October 10.

Senior Advocate Ashim Vachher with Advocates Piyush Paswan, Sonali Karwasrajoon, Kunal Lakra and Saiba M Rajpal appeared for AI+ Smartphones and Sheth.

[Read order]