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New Delhi: The Delhi High Court has ordered Amazon to pay $39 million (approximately Rs 340 crore) in damages to Lifestyle Equities after ruling that the e-commerce giant infringed upon the Beverly Hills Polo Club trademark. Justice Prathiba M Singh issued the ruling, with a detailed judgment yet to be released.
Legal battle over trademark
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In 2020, Lifestyle Equities CV initiated a trademark infringement lawsuit against Amazon Technologies and other entities, alleging that they used a deceptively similar mark on apparel and various other products sold on their platforms. The claim specifically accused Amazon Technologies of manufacturing and selling products under the brand Symbol that carried the infringing logo, with Cloudtail India also involved in the sale of these items on Amazon.in.
The High Court initially imposed an interim injunction on October 12, 2020, barring Amazon and its affiliates from using the disputed mark. Amazon Seller Services was directed to remove the infringing products from its platform. Amazon Technologies failed to appear in court and was proceeded against ex parte. The interim injunction was later made permanent.
In 2023, Cloudtail India admitted to using the infringing mark between 2015 and July 2020, with revenue from these products totalling Rs 23,92,420 and a profit margin of approximately 20 per cent. The company sought a settlement and expressed willingness to accept an injunction, but mediation efforts were unsuccessful.
Cloudtail’s counsel argued that liability for damages should rest solely on them, citing an Amazon Brand License and Distribution Agreement, which they claimed placed the responsibility on Cloudtail. However, Lifestyle Equities countered that the infringing mark was not covered under this agreement and insisted that both Amazon and Cloudtail be held accountable.
Court’s ruling and damages
The court acknowledged Cloudtail’s admission of liability and awarded Rs 4,78,484 in damages, representing 20 per cent of the revenue from infringing sales. However, it ruled that Lifestyle Equities had the right to seek damages from Amazon as well.
Amazon Seller Services, which was recognised as an intermediary, complied with the court’s directives and agreed to remove future listings of infringing products. Consequently, it was removed from the list of parties involved in the case.
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