Delhi High Court Orders Amazon to Pay $39 Million in Trademark Infringement Case

The Delhi High Court has ruled against Amazon Technologies in a trademark infringement case, ordering the company to pay Lifestyle Equities CV $39 million (approximately ?340 crore) in damages for violating its "Beverly Hills Polo Club" trademark.

Justice Prathiba M. Singh issued the ruling, following a lawsuit filed in 2020 by Lifestyle Equities CV against Amazon Technologies and other entities. The lawsuit alleged that Amazon had used a deceptively similar mark on clothing and other products sold on its platforms, infringing upon Lifestyle's registered "Beverly Hills Polo Club" logo and device marks.

According to the complaint, Cloudtail India, a major seller on Amazon’s marketplace, distributed the infringing products. Amazon Technologies was also accused of producing and marketing goods featuring the infringing mark under the " Symbol " brand.

In October 2020, the High Court issued an interim injunction barring Amazon and other entities from using the contested logo. It also directed Amazon Seller Services to remove the infringing products from its website. Having failed to appear before the Court, Amazon Technologies was sued ex-parte.

Following further proceedings, the temporary injunction was made permanent. Cloudtail India, which admitted to selling products bearing the infringing mark between 2015 and July 2020, attempted a damages settlement in 2023 but failed to reach an agreement through mediation. The company disclosed sales of the infringing products totaling ?23,92,420, with a 20% profit margin.

Cloudtail’s legal representatives argued that the company should be entirely liable for damages, citing an Amazon Brand License and Distribution Agreement that held Cloudtail responsible for any violations. However, Lifestyle Equities countered that Amazon and Cloudtail should be held accountable, as the agreement did not cover using the infringing mark.

While the Court acknowledged Cloudtail’s admission of liability, it ruled that Lifestyle Equities could not pursue separate damages claims against Amazon. Cloudtail was ordered to pay ?4,78,484 in damages, calculated as 20% of the revenue from infringing sales.

The Court recognized that Amazon Seller Services functioned as an intermediary and had complied with the Court’s directives to remove the infringing products. As a result, Amazon Seller Services was removed from the list of defendants after assuring the Court that it would prevent future trademark violations on its platform.

This verdict marks a significant legal development in online marketplace liability for trademark infringement, setting a precedent for future enforcement of intellectual property rights in e-commerce.

A detailed copy of the order, passed by Justice Prathiba M Singh, is awaited.?