The case involves the National Stock Exchange of India Ltd. (NSE) as the plaintiff, and Meta Platforms, Inc. & others as defendants. The dispute centers on fake and fabricated videos featuring an AI-generated likeness of NSE’s Managing Director and CEO, Mr. Ashishkumar Chauhan, being circulated on social media platforms, including Facebook. These videos falsely promote stock-picking advice and a WhatsApp community, misleading investors into believing that NSE endorses these schemes.
Key Issues:
- The videos were created using deepfake technology, imitating the voice and facial expressions of the NSE’s CEO.
- The NSE’s trademark was unlawfully used in these fake videos, which misled viewers into thinking that the content was endorsed by NSE.
- The plaintiff’s reputation and the financial safety of investors were at risk due to these misleading advertisements.
- Several Facebook pages and WhatsApp groups were found circulating these fraudulent advertisements, which could cause serious financial harm to investors.
Plaintiff’s Argument:
- NSE sought the removal of these videos and pages, as they caused irreparable damage to both the organization and innocent investors.
- It argued that social media platforms (defendants) were negligent in promptly removing such content despite being notified, violating their obligations under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021.
Court’s Judgment:
- The High Court of Bombay found that the plaintiff had a strong prima facie case and granted ad-interim relief.
- Meta Platforms and other intermediaries were directed to remove the infringing content within 10 hours of receiving complaints from NSE.
- The court emphasized that intermediaries must act swiftly, as the videos pose a risk to the integrity of the securities market and could cause financial loss to investors.
- The defendants were required to provide the details of the perpetrators (unknown defendants named John Doe) and assist in investigating the matter.
- The balance of convenience favored NSE, and irreparable harm would occur if immediate action was not taken to remove the content.
The next hearing was scheduled for August 19, 2024, where further actions regarding compliance by the defendants would be reviewed.
Full Judgement
