Lifestyle Equities CV vs. Amazon Technologies & Cloudtail India

Lifestyle Equities CV vs. Amazon Technologies & Cloudtail India. In a significant ruling, the Delhi High Court has awarded Lifestyle Equities CV damages amounting to $39 million (approximately Rs.340 crore) after determining that Amazon had infringed upon its registered trademark, ‘Beverly Hills Polo Club’.
Background of the Case
In 2020, Lifestyle Equities CV initiated a trademark infringement suit against Amazon Technologies and its affiliates, alleging unauthorized usage of its registered ‘Beverly Hills Polo Club’ logo/device marks. The grievance stemmed from the alleged use of a deceptively similar mark on apparel and other products marketed and sold through Amazon’s platforms.
The plaintiff asserted that Amazon Technologies had been manufacturing and selling products under the brand ‘Symbol’, incorporating the infringing mark. Additionally, Cloudtail India, operating on Amazon.in, was accused of participating in the sale and distribution of such infringing products.
Interim Injunction and Ex-Parte Proceedings
On October 12, 2020, the Delhi High Court granted an interim injunction, restraining Amazon and its affiliates from using the infringing logo and directing Amazon Seller Services to remove the infringing products from its platform.
However, Amazon Technologies failed to enter an appearance before the Court and was subsequently proceeded against ex-parte. Consequently, the interim injunction was confirmed and made absolute.
Cloudtail India’s Position and Failed Mediation
In 2023, Cloudtail India acknowledged liability and expressed willingness to accept an injunction decree while proposing a settlement involving damages. However, the mediation efforts proved unsuccessful.
Cloudtail admitted to using the infringing mark from 2015 to July 2020, generating revenue amounting to Rs.23,92,420, with an estimated profit margin of 20%.
Arguments on Liability
During the proceedings, Cloudtail’s counsel contended that any liability for damages should be attributed solely to Cloudtail, referencing an Amazon Brand License and Distribution Agreement, which allegedly placed the onus for trademark infringements upon Cloudtail.
Conversely, Lifestyle Equities argued that the infringing mark was not a part of this agreement and that both Amazon and Cloudtail should be held accountable for the unauthorized use of its registered trademark.
Court’s Observations and Judgment
The Delhi High Court took cognizance of Cloudtail’s admission of liability but asserted that Lifestyle Equities could not be precluded from seeking damages from Amazon.
Based on Cloudtail’s undisputed sales figures, the Court decreed the suit in favor of Lifestyle Equities and awarded damages of Rs.4,78,484, representing 20% of Cloudtail’s revenue from the infringing products.
Regarding Amazon Seller Services, the Court acknowledged its role as an intermediary and its compliance with judicial directions. Given that no substantive relief was sought against Amazon Seller Services, and the entity had undertaken to remove any future listings of infringing products, the Court directed that it be deleted from the array of parties.
Conclusion
The Delhi High Court’s ruling underscores the stringent legal protections afforded to registered trademarks under Indian law and reiterates the accountability of e-commerce platforms and their affiliates in cases of trademark infringement. The judgment serves as a significant precedent in the realm of intellectual property rights enforcement in India.

In a significant ruling, the Delhi High Court has awarded Lifestyle Equities CV damages amounting to $39 million (approximately Rs.340 crore) after determining that Amazon had infringed upon its registered trademark, ‘Beverly Hills Polo Club’.

Background of the Case

In 2020, Lifestyle Equities CV initiated a trademark infringement suit against Amazon Technologies and its affiliates, alleging unauthorized usage of its registered ‘Beverly Hills Polo Club’ logo/device marks. The grievance stemmed from the alleged use of a deceptively similar mark on apparel and other products marketed and sold through Amazon’s platforms.

The plaintiff asserted that Amazon Technologies had been manufacturing and selling products under the brand ‘Symbol’, incorporating the infringing mark. Additionally, Cloudtail India, operating on Amazon.in, was accused of participating in the sale and distribution of such infringing products.

Interim Injunction and Ex-Parte Proceedings

On October 12, 2020, the Delhi High Court granted an interim injunction, restraining Amazon and its affiliates from using the infringing logo and directing Amazon Seller Services to remove the infringing products from its platform.

However, Amazon Technologies failed to enter an appearance before the Court and was subsequently proceeded against ex-parte. Consequently, the interim injunction was confirmed and made absolute.

Cloudtail India’s Position and Failed Mediation

In 2023, Cloudtail India acknowledged liability and expressed willingness to accept an injunction decree while proposing a settlement involving damages. However, the mediation efforts proved unsuccessful.

Cloudtail admitted to using the infringing mark from 2015 to July 2020, generating revenue amounting to Rs.23,92,420, with an estimated profit margin of 20%.

Arguments on Liability

During the proceedings, Cloudtail’s counsel contended that any liability for damages should be attributed solely to Cloudtail, referencing an Amazon Brand License and Distribution Agreement, which allegedly placed the onus for trademark infringements upon Cloudtail.

Conversely, Lifestyle Equities argued that the infringing mark was not a part of this agreement and that both Amazon and Cloudtail should be held accountable for the unauthorized use of its registered trademark.

Court’s Observations and Judgment

The Delhi High Court took cognizance of Cloudtail’s admission of liability but asserted that Lifestyle Equities could not be precluded from seeking damages from Amazon.

Based on Cloudtail’s undisputed sales figures, the Court decreed the suit in favor of Lifestyle Equities and awarded damages of Rs.4,78,484, representing 20% of Cloudtail’s revenue from the infringing products.

Regarding Amazon Seller Services, the Court acknowledged its role as an intermediary and its compliance with judicial directions. Given that no substantive relief was sought against Amazon Seller Services, and the entity had undertaken to remove any future listings of infringing products, the Court directed that it be deleted from the array of parties.

Conclusion

The Delhi High Court’s ruling underscores the stringent legal protections afforded to registered trademarks under Indian law and reiterates the accountability of e-commerce platforms and their affiliates in cases of trademark infringement. The judgment serves as a significant precedent in the realm of intellectual property rights enforcement in India.