Introduction:

In a landmark judgment, the Delhi High Court has directed Amazon Technologies Inc. to pay ₹340 crore in damages to Lifestyle Equities C.V. and Lifestyle Licensing B.V. for infringing upon the ‘Beverly Hills Polo Club’ (BHPC) trademark.

Arguments:

The plaintiffs, owners of the BHPC brand, alleged that Amazon’s Indian platform sold apparel under the ‘Symbol’ label, featuring a horse device logo nearly identical to the BHPC mark, at significantly lower prices. This, they contended, constituted unauthorized use and trademark infringement. Amazon Technologies, along with Cloudtail India Private Limited and Amazon Seller Services Private Limited, were implicated in the lawsuit.

Judgement:

The court observed that Amazon employed a “deliberate strategy of obfuscation,” assuming multiple roles—as an intermediary, retailer, and brand owner—to evade liability for trademark infringement. Justice Prathiba M. Singh noted that Amazon’s actions amounted to “deliberate and willful infringement,” emphasizing that the company, being a dominant player in the e-commerce sector, had the means to dilute the BHPC brand by offering similar products at a fraction of the price. Despite being aware of the proceedings, Amazon Technologies failed to contest the suit, selectively choosing when to appear before the court. The court applied the ‘Triple Identity Test’ for trademark infringement, concluding that the logos, goods, and consumer channels were identical, thereby establishing a clear case of infringement. Consequently, the court issued a permanent injunction against Amazon Technologies, restraining them from using the BHPC logo in any manner. In determining damages, the court aimed to compensate the plaintiffs for economic losses suffered due to the unauthorized use of their trademark. Based on the evidence, the court awarded compensatory damages of $33.78 million, an additional $5 million for increased advertising and promotional expenses, and ₹3.23 crore for the cost of proceedings, totalling ₹340 crore. This ruling underscores the critical need for e-commerce platforms to enforce stringent trademark compliance and respect intellectual property rights, setting a significant precedent in India’s legal landscape regarding trademark infringement by global corporations.