Needs some advice regarding a tricky situation. Context: we started working on the creation of an online design and development company end of 2018. It was a long journey to create the website and develop our own online customer dashboard and communication tool. When we started working on the project, we were supposed to be 6 people/"friends" working on it. Really quickly after the beginning (like maybe one month after, in December 2018), 3 people stop being involved in the project, stop working on it because they didn't really believe in it in the end, and it was requiring too much work. We were 3 people to continue working on creating and developing the company until today. Now that the company is soon incorporated, and start generating interest (there is a real potential), the 3 people that were not involved in the project anymore for more than a year are back and try to blackmail us to get shares of the company. The problem is that one of them, who is a developer, purchased the domain name (DNS) back in time, that we use since the beginning (and still today) when he briefly helped at the beggining (keep in mind that we were supposed to be a group of friend/former colleague). So he has the login/credentials information for the DNS, we don't. He's trying to leverage this to get shares of the company, threatening us to shut down our website/email addresses. The domain he purchased is let's say mysuperwebsite.com (purchased on Godaddy.in). But we are officially the owner of the LLP mysuperwebsite.com. We do not want to give him any shares as he's just trying to blackmail us and leverage the fact that he only has our DNS credentials. Is there legally something that we can do to stop this, and get back the control of our DNS? Your point of view and advice would really help. Many thanks in advance.
What is source of funds for purchase of domain name .
2) if company funds were used for purchase of domain name then you can file suit seek injunction restraining your friend from closing website
3) take the plea that company is owner of website and friend is black mailing company to get shares of company
4) no need to bow down to black mail tactics
Send a legal notice elaborating all these points mentioned herein above. Tell him to hand over the domain name and all the details essential to run the website otherwise serious criminal and civil liabilities would follow.
Also be prepared to lodge a case immediately if he does not respond.
1. He is the official owner of the DNS used by you now for operating your said website.
2. He has the right to remove the content of your website from his DNS address.
3. It will be prudent on your part to upload your website in a fresh DNS taken in te name of your newly floated Company/Firm.
That's the whole point/tricky part. The domain name was purchased with his credit card, using his email ID. And then we shared the cost by giving him some cash. But of course, their is not really a way to prove this, excepted our own word... Buying the domain name was the first step of the project. As he is a developer and already did this in the past, he did it on our behalf. Now he's leveraging it.
1) you have no evidence that you have paid for domain name
2) offer to buy out the domain name from your friend
- Since, you 6 people started to work on a common project , and not individually & separately on different assigned projects, hence any purchase for the said common project would be treated as a common transaction , and not individual .
- Further on stopping /leaving the project by the three persons, they loose their share in the project , and the purchasing of the website by the developer become the asset of that project . On leaving the project by the developer & other two , the continuing persons/partners should inform for them , and should also inform the Website company for the same.
- Further, if the three left persons were not a part of the project at the time of incorporation of the company , then they cannot seek any share from the company as per law.
- You should issue a legal notice after narrating that they are not a part of the incorporated company , and any misuse of the company either after using the website etc , will be treated as an offence under the provisions of company Act and IPC.
- If the said developer and other two trying to blackmail , then you continuing persons , should lodge a complaint before the police.
- If , no response, then you can even file a complaint before the criminal court as well for lodging an FIR against them.
- Further you can also file a suit before the court for restraining them to misuse/closing the website without the approval of company as well.
Buying something doesn't mean that he owns it. Ownership is a totally different aspect. He may have paid it. But you are using it. You should use this aspect to your benefit. There is no written agreement between you. Everything has to be proved through evidence.
1. It should have been purchased in the name of the Company/Firm, or
2. The said domain Name stands in his own name fo0r which you can not claim its joint ownership.
3. Taking up the Domain Name anew is the only solution which can be suggested in the given circumstances.
4. Alternatively, you can buy the said Domain Name from him by paying him the consideration by registering the sale agreement/deed.
Hi
Initiate the process by filling a complaint for blackmailing and cheating on the basis of facts you shared here.
Get some call records or messages that can prove your part.
Thanks
If the person who initially opted out and after seeing the growth of the company and its yields, is trying to gain entry and demanding any share in the profits or things like that, you may refuse to pay him any telling him that you are the official owner of the company i.e., the said LLP..
You may ask him to proceed through court where you ca challenge his claim legally with the support of documentary evidences in your support.
You can always prove that he was never an active partner neither he had invested with the company hence his claim is false and made with an intention for a wrongful gain.
In my opinion, since your company is at developing stage and you cannot bear this unnecessary hurdle, you may negotiate with him and pay some compensation to him and obtain in writing that he has sold the rights of this domain to your company on receipt of an amount towards consideration.
If he is not agreeing for the offered terms, you may ask him to proceed legally, while challenging the same as per law and with the support of documentary evidences in your possession, you may simultaneously make an alternative arrangement for this instead of wasting your time, money and energy on this especially when your company is progressing rapidly.
If domain purchase from company funds then you can initiate legal action against him in court of law and you can file criminal complaint of blackmailing against him.
1. if he had purchased the domain name in the capacity of individual, then you cannot force him to provide the details, however, if you are able to prove that the domain name was purchased by the newly incorporated firm, doesn't matter who made the payment, then the same can be demanded legally.
2. you have a fewer chances
Dear querist,
As a legal recourse option available with you is to first slap him with a legal notice stating that the money was already paid to him via cash which will be helping us as a evidence. Our goal should be to bring him under the table for negotiations as once he is up for negotiation any admission by him of the payment will lower his chance to gain any unsual profits out of the deal.
I would recommend you to contact me for finding the modus operandi and get you out of this grave situation.
Regards,
Yuganshu sharma
Advocate
Since finance is raised by your friend, he claims the ownership. If you have proof of the cost share by you by making payment it will help you.
You can file an application seeking injunction restraining him from dealing with the website.
You need not yield to his black mailing tactics.
The other way round, since you don't have proof of payment made by you to him, you can offer to purchase the same.
Last but not lease, you may have to issue legal notice to him asking him to restrain from black mailing you followed by lodging complaint before concerned police.
1. Yes you can contact the domain provider company for change of DNS credentials as the company is owner of that domain.
2. You can lodge complaint against that person with police for blackmailing you for shares of company.
3. You can show him as employee of your startup at time of purchase of domain.
Then don't pay file a criminal complaint for blackmailing against him
