Delhi HC orders Amazon to pay $39 million to Lifestyle Equities in trademark infringement case

The Delhi High Court on Tuesday ruled out in favour of Lifestyle Equities CV, awarding it damages worth $39 million, (approximately Rs 340 crore) after finding that Amazon Technologies infringed upon upon its Beverly Hills Polo Club trademark, as per reports by Bar & Bench.

A detailed copy of the order, passed by Justice Pratibha M Singh, is awaited. The judgment comes after a prolonged legal battle that began in 2020 when Lifestyle Equities filed a trademark infringement suit against Amazon Technologies and other entities.

Lifestyle Equities CV alleged that Amazon was manufacturing and selling apparel and other products under the brand "Symbol" that bore a deceptively similar mark to Beverly Hills Polo Club.

The lawsuit also implicated Cloudtail India, a major seller on Amazon.in, for facilitating the sale of these infringing products.

On October 12, 2020, the Delhi High Court issued an interim injunction, restraining Amazon and Cloudtail from using the disputed logo and directing Amazon Seller Services to remove the infringing products from its platform.

However, Amazon Technologies failed to appear before the court, leading to ex-parte proceedings against the company.

Cloudtail India later acknowledged its involvement in the sale of the infringing products between 2015 and July 2020. It disclosed that its total revenue from the sales of these products amounted to Rs 23,92,420, with an estimated profit margin of 20%.

Cloudtail's legal counsel argued that it alone should be held responsible for damages, citing an Amazon Brand License and Distribution Agreement that allegedly placed liability on Cloudtail for any breaches.

However, Lifestyle Equities countered that the infringing mark was not part of this agreement and insisted that both Amazon and Cloudtail should be held accountable.

Recognizing Cloudtail’s admission of liability, the court ruled that Lifestyle Equities was entitled to seek damages from Amazon as well.

Consequently, the suit was decreed in favour of Lifestyle Equities, awarding ₹4,78,484 in damages against Cloudtail, representing 20% of its revenue from infringing products.

Amazon Seller Services, which operates as an intermediary, was found to have complied with the court’s earlier directions to remove infringing products from its platform.