DELHI | 1ST JULY 2025– A division bench of the Delhi High Court on Tuesday stayed a single-judge order that directed Amazon Technologies to pay $39 million (approximately ₹340 crore) to Lifestyle Equities for trademark infringement of the “Beverly Hills Polo Club” mark.
BENCH GRANTS STAY WITHOUT PRE-DEPOSIT
A bench comprising Justices C Hari Shankar and Ajay Digpaul passed the interim order, noting that Amazon was not required to make any pre-deposit for the stay.
The Court further directed Amazon to provide an undertaking to satisfy the damages if the appeal is decided against it. Importantly, the Court clarified that the findings in the impugned order would not influence its final decision on the appeal.
A detailed copy of the order is awaited.
Background: Trademark Infringement Suit by Lifestyle Equities
In 2020, Lifestyle Equities filed a suit against Amazon Technologies and others, alleging infringement of its registered “BEVERLY HILLS POLO CLUB” logo/device marks.
It was claimed that Amazon was manufacturing and selling apparel and other products under the brand “Symbol” using a deceptively similar mark. Additionally, Cloudtail India, a key seller on Amazon.in, was also implicated for selling these infringing products.
Initial Injunction and Amazon’s Ex-Parte Proceeding
On October 12, 2020, the High Court granted an interim injunction restraining Amazon and others from using the infringing logo and directed Amazon Seller Services to remove the infringing listings from its platform.
Amazon Technologies subsequently failed to appear in court and was proceeded against ex-parte.
CLOUDTAIL’S ADMISSION AND PARTIAL SETTLEMENT
Cloudtail India expressed willingness to accept a decree of injunction and proposed a settlement involving damages, but mediation efforts failed.
Cloudtail acknowledged using the infringing mark between 2015 and July 2020, earning revenue of ₹23,92,420, with a profit margin of about 20%.
Based on this, the Court awarded ₹4,78,484 in damages against Cloudtail, representing 20% of the revenue from infringing products.
SINGLE-JUDGE ORDER AGAINST AMAZON
In its final judgment, the single-judge bench held Amazon liable for approximately ₹340 crore (around $39 million) in compensatory damages and costs.
The ruling stemmed from Amazon’s commercial relationship with Cloudtail, which the Court found to be deeply intertwined with the alleged infringement.
The Court noted:
“E-commerce platforms, while increasing consumer access, also pose serious challenges to intellectual property enforcement.”
It criticised Amazon and Cloudtail for attempting to portray themselves as independent entities to “diffuse and dissipate the consequences of infringement.”
AMAZON’S DIRECT ACCOUNTABILITY
The Court examined the Amazon Brand License and Distribution Agreement with Cloudtail, which granted Cloudtail extensive rights to use Amazon’s trademarks and branding. This undermined Amazon’s defense of being a mere intermediary.
As a result, the Court concluded that Amazon was directly accountable for Cloudtail’s infringing acts.
DAMAGES AWARDED
The Court awarded Lifestyle Equities $5 million for additional advertising and promotional efforts to protect its brand reputation, calling these expenses a “direct and foreseeable consequence” of Amazon’s actions.
Additionally, $33.78 million (₹292.7 crore) was awarded in compensatory damages for lost royalties.
Combined, these sums amounted to $38.78 million (about ₹336 crore). Including litigation costs and court fees, the final amount payable rose to approximately ₹340 crore.
Significant Precedent for E-commerce Liability
This judgment marked a significant precedent for the liability of e-commerce platforms in trademark infringement cases involving affiliated sellers.
LEGAL REPRESENTATION
For Amazon Technologies:
Senior Advocates Neeraj Kishan Kaul and Arvind Nigam, along with Advocates Saikrishna Rajagopal, Sidharth Chopra, Sneha Jain, Devvrat Joshi, Angad S Makkar, Ira Mahajan, Pritha Suri, and Agnish Aditya from Saikrishna & Associates.
For Lifestyle Equities CV:
Senior Advocates Gaurav Pachnanda, Ankit Jain, and Sai Deepak, supported by a team from Sim and San comprising Advocates Mohit Goel, Sidhant Goel, Deepankar Mishra, Karmanya Dev Sharma, Aditya Goel, Namrata Sinha, and Love Virvani.
