Recently, the High Court of Delhi issued a permanent injunction, ordering the defendant, Amazon Technologies Inc. (“Amazon”) to pay INR 339.25 crores as damages (including costs) to the plaintiffs, Lifestyle Equities C.V. and Lifestyle Licensing B.V. (hereinafter collectively called “Lifestyle”) for infringing Lifestyle’s registered trademark, Beverly Hills Polo Club Device (“BHPC Device”).
Lifestyle initiated a trade mark infringement suit against the defendants, Amazon, Cloudtail India Private Limited (“Cloudtail”)and Amazon Seller Service Private Limited (“Amazon Seller”) alleging unauthorised use of the BHPC Device mark. Lifestyle also alleged that Amazon was manufacturing and selling apparel bearing the mark SYMBOL, featuring a Horse Device mark strikingly similar to the BHPC Device. In October 2020, the court issued an ad-interim injunction, preventing Amazon and its affiliates, Cloudtail and Amazon Seller from using the infringing marks and instructing Amazon to remove the infringing products from the platform. However, Amazon failed to appear before the court, resulting in ex-parte proceedings against it.
During the proceeding Cloudtail appeared before court and contended that the damages should be payable by only Cloudtail and not Amazon since, the decision to use the infringing marks was of Cloudtail’s. Further, as per the agreement entered between Amazon and Cloudtail, Cloudtail was liable to indemnify Amazon for any loss arising from any breach on their part. Lifestyle argued that infringing marks with respect to present suit were not a part of this agreement therefore, both Amazon and Cloudtail are liable to pay damages.
Considering the admission by Cloudtail, in March 2023, the court decreed the suit in favour of Lifestyle restraining Cloudtail and Amazon permanently from using BHPC Device mark. The Hon’ble Court noted Amazon cannot be absolved from its liabilities. Further, the court granted damages of ₹4,78,484 payable by Cloudtail, which was 20% of Cloudtail’s total infringing sales revenue of ₹23,92,420 and also damages to the tune of $38.78 million, as on date equal to ₹336,02,87,000.00/ payable by Amazon. The court also treated Amazon Seller as an intermediary and removed it from the list of parties, as it assured the court it would take down infringing listings upon instruction.
Lifestyle Equities CV & Anr. versus Amazon Technologies, Inc. CS(COMM) 443/2020
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