Delhi High Court Stays ₹340 Crore Trademark Infringement Order Against Amazon

In a significant development with wide-ranging implications for the e-commerce sector, the Delhi High Court has stayed a previous order directing Amazon Technologies Inc to pay ₹340 crore in damages for alleged trademark infringement involving the Beverly Hills Polo Club (BHPC) brand.

The stay order, issued on Tuesday by a division bench comprising Justices C. Hari Shankar and Ajay Di
gpal, provides temporary relief to Amazon, which had challenged the earlier decision made in February 2024.

Background: A Landmark Trademark Dispute

The dispute centers around Lifestyle Equities CV and Lifestyle Licensing BV, owners of the BHPC brand—known for its iconic polo pony logo. The Amsterdam-based fashion company accused Amazon Technologies, along with Cloudtail India Private Ltd and Amazon Seller Services Private Limited, of unauthorized use of the BHPC trademark on Amazon’s e-commerce platform.

The plaintiffs claimed this led to consumer confusion, dilution of brand goodwill, and unlawful commercial gain. In February, Justice Prathiba Singh sided with Lifestyle, criticizing Amazon’s approach as a "deliberate strategy of obfuscation" and calling their conduct “e-infringement.”

The High Court's Observations

Amazon Technologies Inc appealed the decision, arguing procedural lapses and lack of direct involvement in the infringement. The division bench found merit in the appeal, holding that:

“No formal summons was served on Amazon Technologies Inc before the order was passed. Proceeding ex parte under such circumstances is legally unsustainable.”

The judges emphasized that no defendant can be held liable in the absence of proper legal service, regardless of any communication outside formal summons.

Damages Without Direct Involvement?

Crucially, the bench noted that there was no concrete evidence linking Amazon Technologies directly to the infringing actions, which were allegedly carried out by Cloudtail. The court stated:

“The single judge made out a case in favor of Lifestyle which it itself did not plead.”

In light of these issues, the division bench stayed the ₹336 crore damages and ₹3.23 crore in associated legal costs, originally imposed on Amazon Technologies.

What This Means for the Industry

This case underscores the growing complexity of intellectual property enforcement in digital marketplaces, especially involving multiple entities within a large corporate ecosystem like Amazon’s.

While the final verdict is still pending—Amazon’s main appeal is set to be heard on October 9—this interim stay may serve as a precedent for future trademark disputes involving e-commerce intermediaries.

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Final Thoughts

As global brands continue to navigate the digital landscape, this case highlights the importance of clear legal accountability and proper procedural conduct in enforcing IP rights. For e-commerce giants and third-party sellers alike, the outcome of this case could reshape the contours of platform liability and trademark protection in India.