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Delhi High Court Slaps $39 Million Fine on Amazon for Trademark Infringement

By Times Rupee

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In a major legal setback for Amazon Technologies, Inc., the Delhi High Court has directed the global e-commerce giant to pay USD 39 million (approximately ₹340 crore) in damages for unauthorized use of the Beverly Hills Polo Club (BHPC) logo. Justice Prathiba M. Singh delivered the ruling on February 25, 2025, emphasizing that Amazon’s actions were “deliberate and willful” violations of Lifestyle Equities’ trademark rights in India.

Amazon’s Trademark Violation and Legal Dispute

The legal battle stemmed from Amazon’s alleged misuse of the BHPC logo under its private label “Symbol”. Lifestyle Equities, the official trademark owner of Beverly Hills Polo Club (BHPC) in India, argued that Amazon’s infringement resulted in substantial financial losses for the company. The Delhi High Court had initially imposed an interim injunction on Amazon on October 12, 2020, which was later reaffirmed on April 20, 2022.

Alongside Amazon Technologies, other defendants in the case included Cloudtail (a former Amazon-affiliated entity) and Amazon Seller Services, which operates the Indian e-commerce platform Amazon.in. Notably, court records revealed that Cloudtail admitted to selling infringing products between 2015 and July 2020, generating approximately ₹25 lakh in revenue.

Breakdown of the ₹340 Crore Compensation

The Delhi High Court meticulously assessed the financial impact of Amazon’s trademark violation and determined the compensation as follows:

USD 33.78 million (~₹290 crore) as compensatory damages for Lifestyle Equities’ financial losses.

USD 5 million (~₹43 crore) to cover increased advertising and promotional expenses required to mitigate the damage.

₹3.23 crore (~USD 375,000) awarded as litigation costs.

With the prevailing exchange rate, the total damages awarded amounted to ₹336 crore, bringing the total financial penalty to approximately ₹340 crore.

Despite being named in the lawsuit, Amazon Technologies did not initially appoint legal counsel, unlike Amazon Seller Services and Cloudtail, both of which actively defended themselves in court. The judgment underlines Amazon’s lack of due diligence in addressing trademark concerns, leading to significant legal and financial repercussions.

Final Verdict: A Strong Warning for E-Commerce Giants

This ruling sends a strong message to e-commerce platforms about intellectual property rights and brand protection. With courts increasingly cracking down on unauthorized use of trademarks, companies operating in India must ensure strict compliance with trademark laws to avoid such hefty penalties.

The ₹340 crore penalty against Amazon serves as a landmark decision in India’s e-commerce and intellectual property landscape, reinforcing that even global tech giants are not above the law.

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