The Delhi High Court has directed Amazon Technologies Inc. to pay nearly ₹340 crore in damages for trademark infringement related to the Beverly Hills Polo Club (BHPC) brand. The ruling comes after Amsterdam-based Lifestyle Equities, the owner of the BHPC trademark, accused Amazon of selling clothing through its private label, Symbol, with a logo strikingly similar to BHPC’s. The court found this misleading and a clear violation of trademark rights.
The dispute originated in 2020, when Lifestyle Equities CV sued Amazon Technologies, Cloudtail India Private Ltd, and Amazon Seller Service Private Limited for unauthorized use of the BHPC logo. The case involved alleged deceptive sales practices, leading to consumer confusion and loss of brand equity for BHPC. Amazon was found guilty of evading liability by operating under multiple business roles, including retailer, intermediary, and brand owner. The court’s ruling sets a major precedent in India regarding intellectual property rights on e-commerce platforms.
After examining financial harm, the court awarded Lifestyle Equities:
- ₹292.7 crore for lost royalties.
- ₹43.33 crore for increased advertising expenses.
- ₹3.23 crore in court fees.
The total penalty of ₹340 crore underscores the importance of protecting trademarks in India’s digital marketplace. This ruling sends a strong message to e-commerce giants about compliance with intellectual property laws.
1. Amazon’s Business Model and Background
1.1 Amazon Technologies: Business Model
Amazon operates as a global e-commerce and technology conglomerate, providing a platform for independent sellers and its own private label brands. Its business model includes:
- E-commerce Marketplace: Allows third-party sellers to list products while Amazon manages logistics.
- Private Label Business: Amazon sells its own branded products, such as Symbol, under different categories.
- Amazon Web Services (AWS): A cloud computing division generating high revenue.
- Subscription-Based Revenue: Amazon Prime and other paid memberships.
- Advertising & Promotions: Monetization through advertising on its platform.
1.2 Revenue Model
Amazon earns revenue through:
- Commission on Sales: Sellers pay fees based on categories and transaction value.
- AWS Cloud Services: A highly profitable business division.
- Amazon Prime Subscriptions: Subscription-based streaming and delivery services.
- Private Label Sales: In-house brands generating direct sales profits.
- Advertising Revenue: Sponsored product listings and promotions.
1.3 Founders and Key Executives
Amazon was founded by Jeff Bezos in 1994. The company operates globally and is currently led by Andy Jassy as CEO. In India, Manish Tiwary heads Amazon India, overseeing e-commerce operations and compliance.
1.4 Services and Products
Amazon provides services like:
- Online Marketplace: Electronics, fashion, books, and more.
- Amazon Prime Video & Music: Digital entertainment services.
- AWS (Cloud Computing): Hosting solutions for businesses.
- Amazon Pay: Digital payment service.
- Alexa & Echo: Smart home and AI-driven devices.
2. Background of the Trademark Row
2.1 Lifestyle Equities and BHPC
Lifestyle Equities CV and Lifestyle Licensing BV are Amsterdam-based companies that own and manage the Beverly Hills Polo Club (BHPC) brand. Their portfolio includes apparel, accessories, and lifestyle products. The brand is well-known for its distinctive polo pony logo, representing a luxurious, high-end lifestyle.
2.2 Allegations Against Amazon
Lifestyle Equities accused Amazon Technologies of:
- Unauthorized Use of the BHPC Trademark: company’s private label Symbol was selling products with an almost identical logo.
- Consumer Confusion: Customers were misled into believing that the Symbol brand was affiliated with BHPC.
- Loss of Brand Equity: The pricing of Amazon’s Symbol products negatively impacted BHPC’s market positioning.
2.3 Court Findings and Ruling
The Delhi High Court found that:
- Amazon Technologies deliberately attempted to evade responsibility by presenting itself as a retailer, intermediary, and brand owner at different times.
- The infringing logo was nearly identical to BHPC’s registered trademark.
- company failed to appear before the court, leading to an ex-parte judgment.
- Cloudtail India admitted to selling infringing products between 2015 and 2020.
- Company’s conduct was not in good faith, and it attempted to conceal the relationship between its subsidiaries.
2.4 Legal Consequences
As a result, the court:
- Imposed a ₹340 crore fine on Amazon.
- Ordered Amazon to stop selling infringing products.
- Directed Amazon to remove infringing listings within 72 hours.
3. Learning for Startups and Entrepreneurs
- Trademark Protection is Essential: Secure your brand’s identity to avoid unauthorized use.
- Legal Compliance for E-Commerce Sellers: Ensure all products listed comply with intellectual property laws.
- Transparency in Business Operations: Avoid misleading branding strategies to prevent legal disputes.
- Brand Equity Matters: Unlawful competition can devalue premium brands.
- Proactive Legal Measures: Businesses should actively monitor trademark infringements and take legal action when necessary.
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