Trap Purchases and Manufactured Jurisdiction in Indian IP Litigation A study of SML Ltd. v. M/s Happy Agro Chemicals and the doctrine of trap transactions Introduction In intellectual property disputes, few procedural issues matter as much as deciding where a case can be filed. The choice of court often shapes the entire journey of the case — from how quickly interim orders are granted, to the attitude of the local lawyers, to the practical burden placed on a defendant who must fight far from home. Because the forum is so important, plaintiffs sometimes try to influence it. The most common method is the trap purchase : a test buy arranged by the plaintiff, where an investigator pretends to be a regular customer, purchases the allegedly infringing product, and keeps the invoice and packaging. Later, this evidence is used not only to show infringement but — more controversially — to argue that the cause of action arose within the territory of the chosen court. Tra...
Supreme Court Transfers Patent Infringement Suit to Prevent Forum Shopping and Multiplicity of Proceedings
Summary The Supreme Court transferred a patent infringement suit from Delhi High Court to Bombay High Court, holding that the first-filed groundless threats suit should be adjudicated alongside the subsequent infringement claim to avoid duplication and multiplicity of proceedings, and clarifying that Section 106 groundless threat suits can proceed independently under the Patents Act, 1970. Background The dispute arose following the commercial launch of Atomberg Technologies' "Atomberg Intellon" water purifier in June 2025. Atomberg alleged that Eureka Forbes engaged in conduct designed to intimidate and pressure its commercial distributors by issuing threats of legal action for alleged patent infringement. In response, Atomberg initiated legal proceedings under Section 106 of the Patents Act, 1970, filing a suit for groundless threats of infringement in the Bombay High Court on July 1, 2025. Shortly thereafter, on July 7, 2025, Eureka Forbes filed a patent infringement ...