Delhi HC Orders Amazon to Pay $39 Mn to Lifestyle Equities for Trademark Infringement

The Delhi High Court has ordered Amazon to pay $39 million (approximately ₹340 crore) in damages to Lifestyle Equities for infringing on its 'Beverly Hills Polo Club' trademark.

The court found that Amazon Technologies and others used a deceptively similar mark on apparel and other products sold on their platforms. The case was filed by Lifestyle Equities in 2020, and the court issued an interim injunction in October 2020, prohibiting Amazon and others from using the infringing logo.

The detailed order from Justice Prathiba M Singh is awaited.

The court issued an interim injunction in October 2020, prohibiting the use of the infringing logo and instructing Amazon Seller Services to remove the infringing merchandise. Amazon Technologies failed to appear in court and was prosecuted ex-parte.

Amazon Seller Services was removed from the list of parties as they agreed to remove any future listings of infringing products.

Cloudtail India, involved in selling the infringing products, acknowledged its liability and proposed a settlement. The court awarded damages of ₹4,78,484 against Cloudtail, representing 20% of the revenue from infringing products.

This ruling highlights the importance of trademark protection and the legal consequences of infringement.

Amazon has faced several trademark infringement cases over the years, and their responses have varied depending on the specifics of each case.

In 2017, Birkenstock, the German footwear company, accused Amazon of selling counterfeit products on its platform. In response, Birkenstock decided to stop selling its products on Amazon. Amazon took measures to improve its anti-counterfeiting efforts, including enhancing its Brand Registry program to help brands protect their intellectual property.

In 2020, Salvatore Ferragamo, the Italian luxury brand, filed a lawsuit against Amazon for selling counterfeit Ferragamo products. Amazon worked with Ferragamo to identify and remove counterfeit listings and took legal action against counterfeiters. This collaboration led to the seizure of counterfeit goods and the shutdown of counterfeit operations.

In 2019, Nike decided to stop selling its products directly on Amazon, citing concerns over counterfeit goods and unauthorized sellers. Amazon responded by enhancing its anti-counterfeiting measures and working with brands to improve the authenticity of products sold on its platform.

In general, Amazon has taken steps to address trademark infringement by improving its anti-counterfeiting measures, collaborating with brands to remove counterfeit listings, and taking legal action against counterfeiters. However, the effectiveness of these measures has been a subject of ongoing debate and scrutiny.