Delhi High Court Fines Amazon $39M for Trademark Infringement

About the Case

The Delhi High Court has ruled in favor of Lifestyle Equities CV in a trademark infringement lawsuit against Amazon Technologies and others, awarding damages amounting to $39 million (approximately ₹340 crore). The case revolved around Amazon’s unauthorized use of the “Beverly Hills Polo Club” trademark.

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Case Background

Lifestyle Equities CV, the registered owner of the “Beverly Hills Polo Club” logo/device marks, filed a trademark infringement suit in 2020 against Amazon Technologies and its associates. The company alleged that Amazon was manufacturing and selling products under the brand “Symbol” with an infringing mark. Additionally, Cloudtail India, operating on the Amazon.in marketplace, was also accused of selling these products.

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Key Developments:

• October 12, 2020: The Delhi High Court issued an interim injunction restraining Amazon and others from using the infringing logo. Amazon Seller Services was directed to remove infringing products from its platform.
• Amazon Technologies’ Non-Appearance: The company failed to appear before the court and was proceeded against ex-parte.
• Cloudtail India’s Acknowledgment: Cloudtail admitted using the infringing mark from 2015 to July 2020, generating revenue of ₹23,92,420 with a 20% profit margin.
• Settlement Attempts: Cloudtail proposed a settlement, which ultimately failed.
• Court’s Decision: The court confirmed the injunction, awarded damages of ₹4,78,484 against Cloudtail, and found Amazon liable for $39 million in damages.

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Court’s Rationale

The Delhi High Court emphasized that Lifestyle Equities CV should not be denied its right to seek damages from Amazon. The ruling also clarified that Amazon Seller Services, as an intermediary, was not held substantively liable since it complied with the court’s directions to remove infringing products.

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Representation

Lifestyle Equities CV was represented by Senior Advocate Gaurav Pachnanda, along with a team from Sim and San comprising Advocates Sidhant Goel, Mohit Goel, and Deepankar Mishra.

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Legal Implications

This ruling sets a precedent for enforcing intellectual property rights against e-commerce giants and highlights the liabilities of online platforms engaging in trademark violations.

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