Delhi High Court Orders Amazon to Pay ₹340 crore for Trademark Infringement

The Delhi High Court has ordered Amazon to pay ₹340 crore for using the Beverly Hills Polo Club (BHPC) trademark without permission. The case began when Lifestyle Equities CV, the owner of the BHPC trademark, sued Amazon for selling clothing under its private label, Symbol, with a logo similar to BHPC’s, which led to customer confusion. The court found this misleading to customers and a clear case of trademark infringement.  

What Happened?

The dispute originated in 2020, when Lifestyle Equities CV, the rightful owner of the BHPC trademark, filed a lawsuit against Amazon. The legal battle centred around allegations that Amazon’s private label, Symbol, was selling clothing that bore a logo similar to that of BHPC, potentially misleading customers. Additionally, Cloudtail India, a key seller on Amazon.in, was found to be involved in selling these infringing products.

• Lifestyle Equities bought apparel from Amazon’s website and found that the logo used was “nothing but a slavish imitation” of its BHPC logo.
• The company argued that such unauthorised use constituted trademark infringement, misrepresentation, and consumer confusion.

Trademark Infringement: Court’s Findings

After a detailed review of the evidence, the Delhi High Court determined that:

• Amazon’s use of a similar logo was deceptive and could confuse customers into believing they were purchasing genuine BHPC products.
• The involvement of Cloudtail India in the sale of these goods further strengthened the case for trademark infringement.
• The unauthorised use of the BHPC brand identity by Amazon’s private label constituted a clear violation of intellectual property rights.

Penalty and Legal Consequences

Previously, the Delhi High Court had issued an ad-interim injunction, directing:

• Amazon, its affiliate Cloudtail India Pvt Ltd, and Amazon Seller Service Pvt Ltd to stop infringing on the BHPC trademark.
• The removal of the infringing products from Amazon’s website within 72 hours.

Amazon Technologies did not appear before the court, leading to ex-parte proceedings. However, Cloudtail admitted to selling the infringing products between 2015 and July 2020.

As a result, the court imposed a hefty ₹340 crore penalty on Amazon for its actions, setting a precedent for strict enforcement of trademark laws in India.

In the order, Delhi HC directed Amazon to pay:

• INR 292.7 crore for lost royalties
• INR 43.33 crore for increased advertising and promotional expenses borne by Lifestyle Equities
• INR 3.23 crore towards court fees and additional costs

Key Takeaways for Businesses

The Delhi High Court’s ruling against Amazon is a wake-up call for businesses to secure their trademarks before facing legal trouble. It highlights the need to:

• Register and protect your brand to prevent unauthorized use by competitors.
• Perform comprehensive trademark searches before launching products or services.
• Stay compliant with intellectual property laws to avoid legal penalties and financial losses.
• Monitor the marketplace for potential infringements and take prompt legal action if necessary.

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