Amazon India fined ₹340cr in trademark infringement case
What's the story
The Delhi High Court has slapped a fine of ₹340 crore on Amazon India, for violating the trademark of 'Beverly Hills Polo Club.' Lifestyle Equities, the owner of the 'Beverly Hills Polo Club' and affiliated horse logo, initiated the case, alleging that Amazon's Indian website was selling apparel with a similar logo at significantly lower prices. A permanent injunction has also been passed against Amazon to stop further misuse of this trademark.
Court's observation
Amazon's strategy of obfuscation
Justice Pratibha Singh noted that Amazon had adopted a strategy of obfuscation by assuming different roles. The company was selling products at merely 10% of the cost of Lifestyle's products, and shifting blame to avoid liability for trademark infringement. "It is well known reality that all three defendants (Amazon Technologies, Cloudtail India and Amazon Seller Service) belong to the Amazon Group of Companies and operate as a cohesive commercial entity," Justice Singh said.
Injunction details
Court restrains Amazon from further trademark misuse
The court has granted a permanent injunction against Amazon, restraining it from selling, advertising or dealing in any products using the logo mark similar to that of Lifestyle's trademark. This came after Amazon failed to clarify the exact relationship among the three defendants and accepted a permanent injunction, avoiding the scrutiny. "Thus, the clear attempt is to not disclose the exact relationship between the said three defendants to this court," Justice Singh noted.
Legal action
Amazon had been producing knockoff products in India
A 2021 Reuters investigation revealed that Amazon had been producing knockoff products and manipulating search results to boost its private brands in India. The findings were based on thousands of internal Amazon documents. Aditya Gupta, a partner at Ira Law in India, remarked, "This is likely the highest damages sum awarded in a trademark infringement suit in India... It now remains to be seen how this Indian judgment is enforced by the US courts."