The Delhi High Court awarded Lifestyle Equities $39 million after ruling Amazon infringed its trademark. The case, highlighting e-commerce liability, emphasizes the need for platforms to address trademark violations.
The Delhi High Court has awarded Lifestyle Equities damages worth $39 million (approximately Rs 340 crore) after ruling that Amazon infringed upon the ‘Beverly Hills Polo Club’ trademark.
A detailed order from Justice Prathiba M Singh is awaited, but the verdict marks a significant win for Lifestyle Equities CV, which filed a trademark infringement suit in 2020 against Amazon Technologies and others. The company alleged that Amazon had used a deceptively similar mark on apparel and other products sold on its platform, violating its registered “BEVERLY HILLS POLO CLUB” logo/device marks.
Lifestyle Equities specifically claimed that Amazon Technologies was manufacturing and selling products under its brand “Symbol” with the infringing mark. Additionally, Cloudtail India, a seller on Amazon.in, was also involved in selling these unauthorized products.
In response, the Delhi High Court issued an interim injunction on October 12, 2020, barring Amazon and others from using the infringing mark and directing Amazon Seller Services to remove such products from its platform. However, Amazon Technologies failed to appear in court, leading to ex-parte proceedings against it.
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In 2023, Cloudtail India proposed a settlement, admitting that it had used the infringing mark from 2015 to July 2020, generating revenue of Rs 23,92,420 with a 20% profit margin. Despite attempts at mediation, no resolution was reached.
Cloudtail’s counsel argued that damages should be its sole responsibility, citing an Amazon Brand License and Distribution Agreement that placed liability on Cloudtail for any trademark breaches. However, Lifestyle Equities countered that the infringing mark was not covered under this agreement, meaning both Amazon and Cloudtail should be held responsible.
The Delhi High Court ruled in favor of Lifestyle Equities, acknowledging Cloudtail’s admission of liability but stating that Amazon could not escape potential damages.
Based on Cloudtail’s revenue figures, the court ordered damages of Rs 4,78,484, representing 20% of sales from infringing products. However, since Amazon Seller Services acted as an intermediary and complied with court orders, it was removed from the list of defendants.
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Lifestyle Equities CV was represented by Senior Advocate Gaurav Pachnanda, along with a legal team from Sim and San, including Advocates Sidhant Goel, Mohit Goel, and Deepankar Mishra.
This ruling sets a crucial precedent for e-commerce liability in India, emphasizing that platforms must take responsibility for trademark infringements occurring on their sites.
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