The Bombay High Court has issued directives to social media platforms to swiftly address purported deepfake videos featuring the managing director and chief executive officer of the National Stock Exchange (NSE), allegedly providing stock recommendations. Justice RI Chagla’s single bench order on July 16 also mandates platforms like Facebook, WhatsApp, Instagram, and Telegram to expunge accounts infringing on NSE’s trademark.
“The balance of convenience favors the Plaintiff (NSE), and unless temporary relief is granted, irreparable harm will ensue,” the HC stated.
The court instructed social media entities to promptly remove such manipulated videos and profiles breaching NSE’s trademark within ten hours upon receiving complaints. It emphasized compliance with Information Technology Rules requiring immediate action against complaints from entities like NSE regarding unauthorized use of their trademark on dubious web pages, profiles, accounts, advertisements, videos, and social media groups.
NSE’s petition to the HC highlighted instances where fabricated videos of its MD and CEO, Ashishkumar Chauhan, allegedly dispensed investment advice using advanced AI to mimic his voice and expressions. NSE sought court orders for the platforms to take down these unauthorized videos and clamp down on misuse of its trademark.
The NSE also alleged misuse of its trademark on platforms like Facebook, Instagram, and WhatsApp, noting a complaint lodged earlier this year with cyber police.
Senior counsel Birendra Saraf, representing NSE, informed the court that despite complaints to the platforms’ grievance cells, no action had been taken against these deepfake videos or trademark infringements.
Saraf argued that such deceptive actions could manipulate markets, constituting unfair trade practices and contravening SEBI regulations.
Justice Chagla acknowledged NSE’s strong prima facie case for interim relief against both intermediaries and unknown perpetrators violating its rights. The HC prohibited any infringements on NSE’s registered trademark and directed intermediaries to file affidavits detailing accounts and persons associated with publishing fake videos or content resembling them.
The court set a deadline of three weeks for submission of these affidavits and scheduled further proceedings for August 19.
The order highlighted how the videos allegedly depicted NSE’s MD and CEO endorsing a WhatsApp community supposedly offering stock recommendations with assurances of full reimbursement for losses caused to diligent traders.