In a landmark ruling, the Delhi High Court has directed Amazon Technologies Inc. to pay damages amounting to nearly ₹340 crore for trademark infringement of Amsterdam-based Lifestyle Equities’ apparel and accessories brand, Beverly Hills Polo Club (BHPC). The decision comes in response to a legal battle initiated by Lifestyle Equities, which sought damages worth ₹1260 crore (USD 155.59 million) against Amazon and its associated entities for unauthorised use of their distinctive logo and brand identity.
Court’s Findings and Amazon’s Evasive Conduct
The court took a stringent stance on Amazon Technologies’ legal strategy, criticizing the company for engaging in deliberate obfuscation to evade liability. Justice Prathiba Singh, who presided over the case, noted Amazon’s attempt to mislead the court by portraying itself in different roles—as an intermediary, a retailer, and a brand owner—depending on the situation.
“It is evident that Defendant No.1 (Amazon Technologies) is engaging in a deliberate strategy of obfuscation, pretending to wear different hats — one as an intermediary, one as a retailer, and one as a brand owner — all in an attempt to shift responsibility and evade liability for trademark infringement,” Justice Singh remarked in her judgment.
She further pointed out that Amazon Technologies, along with its associated defendants Cloudtail India Private Ltd and Amazon Seller Service Private Limited, operates as a cohesive commercial entity within the Amazon Group. The court reprimanded Amazon for selectively appearing before the court and for evading scrutiny by agreeing to a permanent injunction rather than disclosing the precise relationship between the three defendants.
Plaintiffs’ Claims and Allegations
Lifestyle Equities CV and Lifestyle Licensing BV, the plaintiffs in the case, manufacture, distribute, and sell a wide range of products under the BHPC brand. Their logo features a charging polo pony with a mounted rider wielding a raised polo stick—an iconic mark recognized globally.
The plaintiffs alleged that Amazon Technologies and its associated defendants infringed upon their trademark by allowing unauthorized sales of apparel featuring a similar logo on Amazon’s platform. Notably, Cloudtail India was found to be selling apparel products under Amazon’s private label ‘Symbol’ that featured an infringing logo. This unauthorized use caused consumer confusion and diluted the goodwill of the BHPC brand.
Court’s Verdict on Trademark Infringement
The court found that Amazon Technologies’ use of the horse logo was almost identical to the BHPC trademark. Given that the goods (apparel) and trade channels (online retail) were also identical, the court determined that Amazon was liable for blatant trademark infringement. On 2 March 2023, the court had issued a permanent injunction prohibiting Amazon Technologies from using the BHPC logo. The recent ruling adjudicated whether Amazon should be held financially liable for such infringement, ultimately ruling in favor of the plaintiffs.
Breakdown of the Damages Awarded For Trademark Infringement
The Delhi High Court awarded substantial compensatory damages to Lifestyle Equities, breaking down the payable amount as follows:
- Compensatory Damages:
- Additional advertising and marketing expenses: USD 5 million (₹43.32 crore)
- Lost royalties based on business plan sales: USD 33.78 million (₹292.70 crore)
- Total compensatory damages payable: USD 38.78 million (₹336.02 crore)
Additional Costs to Be Borne by Defendants:
- Cost of the suit: ₹3.23 crore
- Court fees: Additional amount to be determined
Total Amount Payable by Amazon Technologies and Co-Defendants: ₹339.25 crore plus court fees
Significance of the Judgment on Trademark Infringement
This ruling is a crucial step in enforcing intellectual property rights in the e-commerce landscape. It sends a strong message to global online marketplaces that they cannot evade responsibility for trademark violations occurring on their platforms. The decision underscores the accountability of e-commerce giants like Amazon, which must ensure that their platforms do not facilitate the sale of counterfeit or infringing products.
Moreover, the case highlights the growing challenges brands face in protecting their trademarks in the digital space. With increasing instances of unauthorized use of brand identities, companies are taking legal action to safeguard their intellectual property.
Conclusion
The Delhi High Court’s verdict against Amazon Technologies Inc. serves as a significant precedent in trademark infringement cases involving e-commerce platforms. By holding Amazon accountable and imposing a hefty financial penalty, the ruling reinforces the importance of protecting intellectual property rights in the digital marketplace. As online retail continues to expand, this judgment sets a benchmark for other businesses and platforms to uphold ethical practices and ensure legal compliance in brand representation and sales. In case of trademark infringement consult an IP lawyer from Vakilsearch.
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