Cyber law

Bread & Kaya: 2018 Malaysia Cyber-law and IT Cases PT4 – Commercial instances

Short-term lodging – the Airbnb Effect

An online marketplace for lodging and hospitality along with Airbnb permits human beings to hire or lease brief-time period accommodations such as holiday and condominium rentals, homestays, hostel beds, and lodge rooms. Currently, there are no particular legal guidelines to manipulate the behavior of these online market carriers. However, joint control our bodies and control corporations have taken action to forestall rental owners from working quick-time period accommodations by way of, amongst others, implementing policies to prevent this exercise.

In Salil Innab & Anor v Badan Pengurusan Bersama Seti Sky Residences & five Ors (Kuala Lumpur High Originating Summons No: WA-24NCVC-776-04/2018), the 1st Defendant, the Joint Management Body of Setia Sky Residences, took steps to prevent the Plaintiffs’ offerings of brief-term rentals. The Plaintiffs, tenant, and landlord of a condo unit at a construction filed an action in opposition to the Joint Management Body to prevent them from interfering or preventing any owners, tenants of any quick-time period rental and/or any individual representing the Plaintiffs from working a short term condominium at Setia Sky Residences.

The 1st Plaintiff is likewise a director of a corporation known as Innab Trade Sdn Bhd. Through Innab Trade Sdn Bhd, the first Plaintiff had additionally rented different devices in Setia Sky Residences for the functions of sub-letting the equal to contributors of the public. The 1st Defendant contended that the commercial enterprise operated by the 1st Plaintiff, thru Innab Trade Sdn Bhd, at Setia Sky Residences is, in reality, a resort commercial enterprise and now not simply the commercial enterprise of letting out brief-time period tenancies.


In so contending, the 1st Defendant referred to how bookings for the fast-term tenancies have been made via the net, how the units had been described and marketed by using the use of the call “KL Suites,” and how they have been portrayed in Innab Trade Sdn Bhd’s website, which includes the rivalry that those “KL Suites” might be booked thru other web sites. It is contended that every one of these is much like and, in impact, controls a motel service. Accordingly, the High Court granted an interlocutory injunction to stop the Defendants from interfering or stopping any owners, tenants of any quick-term apartment and/or any person representing the Plaintiffs from operating a quick time period condo at Setia Sky Residences.

The High Court held that the First Plaintiff’s short-term tenants would be adversely affected, and they may be sufferers of the conflict between the Plaintiffs and the Defendants. In addition, the continuing interference with or obstruction of the 1st Plaintiff’s brief-time period tenants would additionally be likely to motive irreparable harm to the goodwill that the first Plaintiff might have constructed in his business.
However, the Court of Appeal allowed the Defendants’ enchantment (Civil Appeal No. W-02(IM)(NCVC)-1811-09/2018) on the floor that the injunction order becomes too wide and damages is adequate treatment.

In Verve Suites Mont’ Kiara Management Corporation v Innab Salil & 8 Ors Kuala Lumpur High Originating Summons No: WA-22NCVC-461-09/2017, the Plaintiff, the Management Corporation of Verve Suites Mont Kiara, handed and followed a decision in an Extraordinary General Meeting to prohibit the use of residential devices within the Verve Suites for enterprise, inclusive of paid quick-term leases. The prohibition changed into then integrated into House Rule three.

House Rule three.Zero states that any unit for a brief-term condo is against the law. House Rule 3.1(i) states any life for which a reserving turned into made through offerings/applications/websites and so forth, together with Airbnb, booking.Com, agoda.Com, klsuits.Com, and different similar offerings are taken into consideration as a brief-term apartment settlement.

The Defendants had allegedly induced their respective residential devices in Verve Suites to be changed into a hotel room with massive numbers of visitors coming to check in and test out with a flurry of activities interfering with the safety, quiet entertainment, and ordinary well-being of the residents within the Verve Suites.

The Plaintiff then initiated a movement in opposition to the Defendants compelling them to abide using all times and no longer violate the House Rule and be confined from advertising, contracting for, reserving and/or permitting, handling the residential units to be used for a commercial enterprise which includes paid brief-term condominium and/or temporary use for the traveler, or motels, amongst others. The High Court held that Plaintiff could put into effect House Rule three and prohibited the Defendants from going for walks the short-time period apartment commercial enterprise.

E-trade – Suing online market operators

We noticed the first selection at the liability of online market vendors. In Nexgen Biopharma Research & Innovation SARL v Celcom Planet Sdn Bhd (Kuala Lumpur High Court Suit No. WA-22IP-three-01/2018), the Intellectual Property High Court had to determine whether a web market issuer is liable for trademark infringement for the sale and classified ads of its Merchants’ merchandise published on its internet site.
The emblem owner becomes granted an order for summary judgment in opposition to Defendant that operates a web market by way of the call of “11Street” for infringing their exchange mark “MFIII.”

11Street had posted the MFIII alternate marks, and numerous dealers had published unauthorized MFIII merchandise for sale on 11Street. Besides, 11Street had additionally marketed the MFIII exchange mark and merchandise bearing the MFIII change marks on numerous third-party websites. Similarly, in Jeunesse Global Sdn. Bhd. V Ecart Services Malaysia Sdn Bhd (Kuala Lumpur High Court Suit No. WA-22IP-16-02/2018), the Plaintiffs, who’re within the direct selling commercial enterprise of skincare merchandise and dietary supplements, sued the operator of the online market operator, Lazada, for alternate mark infringement, passing off, copyright and unlawful interference with their business, amongst others.

The Plaintiffs located that Lazada had been promoting merchandise bearing the first Plaintiff’s registered exchange marks and publishing the 1st Plaintiff’s copyright works. However, the parties settled the matter amicably, and the problem changed into withdrawal. In Wong Wei Pin v Malayan Banking Berhad [2018] 6 AMR 933, the High Court handled a thrilling factor of whether or not fashionable phrases and situations published on a website may be incorporated into an agreement.

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