Feb 26, Delhi, Wednesday: In a landmark ruling, the Delhi High Court In a landmark ruling, the Delhi High Court ordered on Tuesday ordered Amazon Technologies to pay $39 million (approximately ₹340 crore) in damages to Lifestyle Equities CV for trademark infringement involving the ‘Beverly Hills Polo Club’ brand. The court found that Amazon had unlawfully used a deceptively similar mark on apparel and other products sold on its platform, infringing upon Lifestyle Equities’ registered trademark. The detailed order, issued by Justice Prathiba M Singh, is awaited, but the judgment underscores the court’s firm stance on protecting intellectual property rights in India.
Background of the Case
The legal battle began in 2020 when Lifestyle Equities CV, the owner of the globally recognized ‘Beverly Hills Polo Club’ brand, filed a trademark infringement suit against Amazon Technologies and other entities. The company alleged that Amazon was manufacturing and selling products under the brand name “Symbol” using a logo strikingly similar to its registered “BEVERLY HILLS POLO CLUB” mark. Additionally, Cloudtail India, a seller operating on Amazon.in, was accused of facilitating the sale of these infringing products.
Lifestyle Equities argued that the use of the deceptively similar mark by Amazon and Cloudtail was likely to cause confusion among consumers, thereby diluting the distinctiveness of its brand and causing significant financial harm. The company sought legal recourse to protect its intellectual property and hold the defendants accountable for their actions.
Interim Injunction and Ex-Parte Proceedings
On October 12, 2020, the Delhi High Court granted an interim injunction in favor of Lifestyle Equities, restraining Amazon and other defendants from using the infringing logo. The court also directed Amazon Seller Services, the entity managing Amazon.in the marketplace, to remove the infringing products from its platform. Despite the court’s orders, Amazon Technologies failed to appear in subsequent proceedings, leading the court to proceed against its ex-parte. The interim injunction was later confirmed and made absolute, solidifying Lifestyle Equities’ legal position.
Cloudtail’s Admission and Settlement Attempts
In 2023, Cloudtail India, one of the defendants, expressed its willingness to accept a decree of injunction and proposed a settlement involving damages. However, mediation efforts between the parties proved unsuccessful. During the proceedings, Cloudtail admitted to using the infringing mark from 2015 to July 2020. The company disclosed that the revenue generated from the sale of infringing products during this period amounted to ₹23,92,420, with a profit margin of approximately 20%.
Cloudtail’s legal counsel argued that the company should bear sole responsibility for the damages, citing an Amazon Brand License and Distribution Agreement that placed liability on Cloudtail for any breaches. However, Lifestyle Equities contested this claim, asserting that the infringing mark was not part of the agreement and that both Amazon and Cloudtail should be held jointly liable for the infringement.
Court’s Ruling and Rationale
The Delhi High Court acknowledged Cloudtail’s admission of liability but emphasized that Lifestyle Equities was entitled to seek damages from Amazon as well. The court noted that Amazon Technologies had failed to participate in the proceedings, leaving its role in the infringement unchallenged. Based on the undisputed sales figures provided by Cloudtail, the court decreed the suit in favor of Lifestyle Equities and awarded damages of ₹4,78,484, representing 20% of the revenue generated from the infringing products.
In its ruling, the court also recognized Amazon Seller Services’ role as an intermediary and its compliance with the court’s directions to remove infringing products from its platform. Since no substantive relief was sought against Amazon Seller Services, and the entity agreed to remove any future listings of infringing products, it was removed from the array of parties in the case.
Implications of the Judgment
The Delhi High Court’s decision is a significant victory for intellectual property rights holders in India. It sends a strong message to e-commerce platforms and sellers about the importance of respecting trademark rights and the legal consequences of infringement. The ruling also highlights the court’s willingness to impose substantial damages to deter future violations and compensate brand owners for losses incurred due to infringement.
For Lifestyle Equities, the judgment represents a vindication of its efforts to protect the integrity of its ‘Beverly Hills Polo Club brand. The company was represented by Senior Advocate Gaurav Pachnanda and a team from Sim and San, including Advocates Sidhant Goel, Mohit Goel, and Deepankar Mishra, who successfully argued the case.
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