Delhi HC slaps hefty fine on Amazon for violating 'Beverly Hills Polo Club' trademark

The Delhi high court slapped $39 million (around Rs 340 crore) fine on Amazon after finding that the company had violated the trademark of '

Beverly Hills Polo Club

'.
Lifestyle Equities

CV initiated a trademark infringement lawsuit against Amazon Technologies and others in 2020, asserting that they had violated their registered "BEVERLY HILLS POLO CLUB" logo/device marks through the use of a similar mark on clothing and other items sold on their platforms, Bar and Bench reported.
The claim specified that Amazon Technologies was producing and selling items under the "Symbol" brand with the infringing mark, whilst

Cloudtail India

, operating via Amazon.in marketplace, was also engaged in selling these disputed products.
On October 12, 2020, the High Court issued an initial injunction, prohibiting Amazon and others from using the contested logo and instructing Amazon Seller Services to withdraw the disputed products from their platform. Amazon Technologies' subsequent non-appearance led to ex-parte proceedings.

The court made the interim injunction permanent. Cloudtail India showed willingness to accept an injunction decree in 2023 and suggested a settlement involving damages, though mediation proved unsuccessful. Cloudtail confirmed using the disputed mark from 2015 to July 2020, generating revenue of Rs 23,92,420 with approximately 20% profit margin.
Cloudtail's legal team argued for sole responsibility regarding damages, referencing an Amazon Brand License and Distribution Agreement. However, Lifestyle maintained that the disputed mark was outside this agreement's scope and both parties should bear responsibility.
Whilst acknowledging Cloudtail's admission, the Court upheld Lifestyle's right to pursue damages from Amazon. Based on Cloudtail's sales data, the Court ruled in Lifestyle's favour, granting damages of Rs 4,78,484, equivalent to 20% of the infringing products' revenue.
The Court recognised Amazon Seller Services as an intermediary who complied with directives. They were removed from the proceedings as no substantial relief was sought against them, and they agreed to prevent future listings of infringing items.
Senior Advocate Gaurav Pachnanda represented Lifestyle Equities CV, supported by Sim and San's legal team including Advocates Sidhant Goel, Mohit Goel and Deepankar Mishra.