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Delhi High Court Slaps $39M Fine on Amazon for Trademark Violation

     
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Delhi High Court Slaps $39M Fine on Amazon for Trademark Violation

   
 

In a significant ruling on February 26, 2025, the Delhi High Court directed Amazon to pay $39 million (approximately ₹340 crore) in damages to Lifestyle Equities CV for trademark infringement. The case centered around Amazon's unauthorized use of the "Beverly Hills Polo Club" (BHPC) trademark on apparel sold through its Indian platform.

The legal battle commenced in 2020 when Lifestyle Equities, the rightful owner of the BHPC trademark, filed a lawsuit against Amazon Technologies Inc. and associated entities. The suit alleged that Amazon was manufacturing and selling products under its private label, "Symbol," which bore a logo deceptively similar to the BHPC trademark. Additionally, Cloudtail India, a major seller on Amazon.in, was implicated for distributing these infringing products.

In October 2020, the Delhi High Court issued an interim injunction, restraining Amazon and Cloudtail from using the disputed logo and directing the removal of infringing products from the platform. Despite these directives, Amazon Technologies did not appear before the court, leading to ex-parte proceedings.

During the hearings, Cloudtail India acknowledged its involvement, revealing that between 2015 and July 2020, it had generated revenue of ₹23,92,420 from sales of the infringing products, with an estimated profit margin of20%. Cloudtail proposed a settlement, accepting responsibility for damages. However, Lifestyle Equities contended that both Amazon and Cloudtail should be held accountable, as the infringing mark was not covered under their existing agreements.

Presiding over the case, Justice Prathiba M. Singh observed that the infringing products featured logos nearly identical to the BHPC trademark. The court emphasized that Amazon was aware of Lifestyle Equities' exclusive rights, especially given prior litigations in other jurisdictions, including the United Kingdom. Consequently, the court issued an interim injunction against Amazon, prohibiting further sales of the infringing products on its platform.

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Prepared by : Drashti S. Varmora (Advocate)

 
 

 

 
 
 
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