Amazon Technologies, Inc. was held liable for willful trademark infringement involving the Beverly Hills Polo Club logo and was ordered to pay ₹336 crore ($38.78 million) in damages, along with ₹3.23 crore in litigation costs. The court also granted a permanent injunction, restraining Amazon from using the infringing mark.
The Suit
Lifestyle Equities C.V. and Lifestyle Licensing B.V. (“Plaintiffs”), proprietors of the “Beverly Hills Polo Club” (“BHPC”) brand, initiated a trademark infringement suit against Amazon Technologies, Inc. (“Defendant No.1”), Cloudtail India Pvt. Ltd. (“Defendant No.2”), and Amazon Seller Services Pvt. Ltd. (“Defendant No.3”) before the Delhi High Court. The Plaintiffs alleged that the Defendants had unlawfully used a horse-and-rider logo under Amazon’s private label “Symbol,” which was deceptively similar to their registered BHPC mark. The Plaintiffs contended that this unauthorized use resulted in consumer confusion, brand dilution, and loss of market goodwill, particularly as the infringing products were being sold at significantly lower prices than BHPC’s premium apparel.
Lifestyle’s Arguments and Evidence
The Plaintiffs, who have been using the BHPC mark in India since 2007, argued that Amazon’s use of a nearly identical logo on its apparel line constituted blatant trademark infringement. The Plaintiffs stated that they first discovered the infringing products in May 2020 and subsequently filed suit. They provided extensive evidence, including expert testimony and financial records, to demonstrate a sharp decline in their Indian sales compared to their continued success in other regions, such as the Gulf Cooperation Council (GCC). They attributed this decline directly to the unauthorized sale of infringing goods on Amazon’s Indian marketplace.
Proceedings Against Amazon and Cloudtail
At the time of filing, all three Defendants were involved in the proceedings. On October 12, 2020, the court granted an ad-interim injunction restraining Defendant No.1 (Amazon Technologies, Inc.) and Defendant No.2 (Cloudtail India Pvt. Ltd.) from infringing the BHPC trademark. Defendant No.3 (Amazon Seller Services Pvt. Ltd.), which operates Amazon India, was directed to take down the infringing products within 72 hours of receiving notice from the Plaintiffs.
Subsequently, on April 20, 2022, Defendant No.1 did not appear despite service and was proceeded ex parte. Defendant No.2 (Cloudtail) and Defendant No.3 (Amazon Seller Services) were directed to file affidavits detailing their relationship with Defendant No.1 and their involvement in the sale of the infringing products. On September 5, 2022, Cloudtail admitted to the infringement, agreed to a decree of injunction, and offered to pay damages. The matter was referred to mediation, but no settlement was reached.
On March 2, 2023, the court decreed the suit against Defendant No.2 (Cloudtail), ordering an injunction and damages of ₹4,78,484, based on 20% of its total infringing sales revenue of ₹23,92,420. Defendant No.3 (Amazon Seller Services) was treated as an intermediary and was removed from the list of parties after it assured the court that it would take down infringing listings whenever directed.
Order Against Amazon Technologies,
Despite being aware of the proceedings, Defendant No.1 (Amazon Technologies, Inc.) chose not to contest the suit. The court found that Amazon Technologies, Inc. owned the “Symbol” brand and licensed it to Cloudtail for sales in India, thereby exercising control over its branding and distribution. Due to its direct involvement, the court held that Amazon Technologies, Inc. could not evade liability by distancing itself from Cloudtail’s actions.
The court granted a permanent injunction restraining Defendant No.1 from using the BHPC logo or any deceptively similar mark. Additionally, the court awarded the Plaintiffs compensatory damages of $38.78 million (approximately ₹336 crore), which included lost royalties and increased advertising costs. The court also awarded litigation costs of ₹3.23 crore to the Plaintiffs.
Citation: Lifestyle Equities C.V. v. Amazon Technologies, Inc., CS(COMM) 443/2020 (H.C. Delhi Feb. 25, 2025). Available at: http://indiankanoon.org/doc/38072391/, Visited on: 27/02/2025.
Disclaimer
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