Delhi HC orders Amazon to pay $40 Million Penalty for Brand Infringement

Amazon has been ordered by the Delhi High Court to pay INR 339.3 Cr in damages to Lifestyle Equities for violating the copyright of its Beverly Hills Polo Club (BHPC) trademark. Judge Pratibha M Singh directed Amazon to pay INR 292.7 Cr for lost earnings, INR 43.33 Cr for Lifestyle Equities’ increased advertising costs, and INR 3.23 Cr for legal expenses.

Lifestyle Equities claimed Amazon was illegally using a logo very similar to the BHPC mark, which is well-known globally. They own the BHPC trademark in about 91 countries, including the US, UK, India, and Germany, and initially sought INR 1,260 Cr in damages.

The company alleged that Amazon, under its brand ‘Symbol,’ sold clothing with a logo closely resembling the BHPC horse design. After purchasing items from Amazon, Lifestyle Equities argued the logo was a blatant copy of their own.

The court stated that Amazon’s unauthorized use of the infringing marks on its platform led to trademark infringement and misrepresentation, causing consumer confusion and damaging Lifestyle Equities’ brand reputation.

Previously, the court had temporarily stopped Amazon and its affiliates from infringing on the trademark, ordering them to remove the related products from their site within 72 hours. While Amazon Technologies did not respond in court, Cloudtail admitted to selling the infringing products between 2015 and July 2020.

Lifestyle Equities also won a similar intellectual property case against Amazon in the UK, with the UK Supreme Court ruling in their favor on March 6, 2024.

This adds to Amazon’s ongoing legal challenges in India. The Competition Commission of India (CCI) has previously accused Amazon and Flipkart of violating competition laws by favoring specific sellers on their platforms. Despite these issues, Amazon remains committed to India, recently extending its agreement with the Directorate General of Foreign Trade to boost e-commerce exports, aiming to increase exports from India to $80 billion.