Gaming enthusiasts across the world swooned over the big-bang global launch of PlayStation 5 (PS 5), Sony Interactive Entertainment’s (SIE’s) much-awaited console that promises to define the next generation of gaming, and to unlock rich experiences for gamers to bring them deeper into extraordinary game worlds than ever before.
The roll outs were in the US, Canada, Mexico, Australia, New Zealand, Japan and South Korea on 12 November, followed by Europe, Middle East, South America, Asia and South Africa on 19 November. Only, the big bang did not reverberate in India.
To much bewilderment, India was not on the list of countries for the high decibel unveiling, with Sony yet to confirm an official release date for the event in the country. This may prove hurtful for Sony, which had moved its gaming headquarters from Tokyo to California in 2016, to respond quicker to industry trends. That move had seen the creation of Sony Interactive Entertainment Inc.
Gaming is a rage in India. While the Covid-19 induced lockdown during March-April caused a 17 per cent surge in global spending on games, to $10.5 billion, the industry in India grew at a CAGR of 21 per cent, with a burgeoning customer base crossing about 365 million online gamers in financial year 2020. In India, 85 per cent of online gaming takes place on mobile, and ranks amongst the top five activities carried out on a mobile device. Time spent on gaming also increased by 21 per cent during the lockdown.
Launch blocked in India
The blocked launch in India was courtesy of a third-party trademark application filed by a New Delhi resident, Hitesh Aswani, under the same name ‘PS 5’. By filing for the PS 5 trademark in India last year, Aswani executed what is legally recognised as ‘trademark squatting’ or ‘trademark cyber-squatting’, an irritant that often afflicts the corporate world. Put in layman’s terms, it refers to registering names similar or identical to popular trademarks, mostly with the intent to extort the trademark holder.
Aswani brought the matter before the Registrar of Trade Marks, Delhi. Sony opposed this application in April 2020, contending that owing to the extensive and widespread use of ‘PlayStation’ and ‘PS’ series of marks, it is recognised all over the world, including India. The entertainment conglomerate claimed that Aswani’s mark is identical and deceptively similar to its own trademark. The company further claimed that Aswani had adopted the identical mark “PS 5” with the express intention of riding upon its goodwill and reputation.
The scope of protection of a well-known trademark is usually greater than the protection afforded to any other trademark, depending on its reach in the market
Krrishan Singhania, Managing Partner at the Mumbai-based law firm, Singhania & Co, notes that the term “well-known trademark” has been defined under Section 2 (1) (zg) of the Trade Marks Act, 1999, as one that is known by a large segment of the population that uses such goods or receives such service. “When the use of such a mark leads the users of such product or service to believe that there is a connection between the goods and services and those that use the mark, it can be considered well-known,” explains Singhania. “The scope of protection of a well-known trademark is usually greater than the protection afforded to any other trademark, depending on its reach in the market.”
The trademark dispute has, however, been resolved. Aswani inexplicably withdrew his application for the PS 5 trademark through a letter filed before the Registrar on 12 October. This cleared Sony India to launch the PS 5 gaming console in India. However, SIE has so far refrained from announcing the official sale date for the PS 5 console in India. It had earlier updated its website with the India launch date as 19 November. The circumstances and reasons behind Aswani’s move to apply for the trademark and subsequently withdraw it also remain unclear.
Trademark squatting, however, was not the only hurdle to the India launch. E-commerce site Reliance Digital took a pre-registration survey of those interested in placing orders for the console, and ended up exposing their names, email addresses and telephone numbers on a webpage linked to the survey. At least 800 potential customers reportedly participated in the survey, using Google Form, and did not realise that their personal details were being exposed.