The BRICS TimesThe Supreme Court refused to lift the stay on the Delhi High Court order directing Amazon to pay ₹340 crore damages to Lifestyle Equities. The court also dismissed the UK-based fashion brand’s petition challenging the stay imposed on the damages order related to trademark infringement.
Supreme Court Dismisses Lifestyle Equities’ Plea Against Amazon
On Wednesday, September 24, the Supreme Court dismissed a petition filed by UK-based fashion brand Lifestyle Equities CV. The plea had challenged the Delhi High Court’s interim stay on its order that directed Amazon Technologies to pay damages worth ₹340 crore for trademark infringement.
The case, Lifestyle Equities versus Amazon Technologies Inc., has drawn intense attention from both the legal and business communities due to its financial and commercial implications. The bench of Justice JB Pardiwala and Justice KV Viswanathan heard the matter and decided to dismiss the petition.
“Reasons Will Be Detailed in the Next Order”
The bench clarified that reasons for rejecting the petition would be provided in the subsequent order. However, the judges emphasized that the dismissal of this petition would not interfere with the Delhi High Court’s merit-based hearing of the case. Thus, the High Court proceedings will continue.
Background of the Trademark Dispute
The dispute originated in 2020 when Lifestyle Equities filed a complaint alleging infringement of its Beverly Hills Polo Club (BHPC) trademark. The company claimed that products sold under Amazon’s private label “Symbom” displayed logos deceptively similar to its registered BHPC marks. Lifestyle also named Cloudtail India, a major seller on Amazon’s platform, as a defendant in the lawsuit.
Disclosure of ₹24 Lakh Sales
In October 2020, the Delhi High Court issued an interim injunction barring the defendants from using the disputed marks. While Cloudtail admitted liability and revealed sales of nearly ₹24 lakh from the concerned products, Amazon Technologies did not appear, resulting in ex-parte proceedings against it.
Later, a single judge of the Delhi High Court ruled in favor of Lifestyle Equities, holding Amazon liable for trademark infringement. The court observed that Amazon’s brand license and distribution agreements with Cloudtail allowed extensive use of Amazon’s branding and logos. It noted that Amazon’s role exceeded that of a neutral intermediary, making it responsible for infringing products sold on its platform.
Total Damages Reached Nearly ₹340 Crore
The High Court awarded damages of ₹41.5 crore for corrective advertising and brand rehabilitation. It also ordered ₹292.7 crore for loss of royalty and litigation costs, bringing the total liability against Amazon Technologies to nearly ₹340 crore.
Division Bench Imposed Stay on Order
However, on July 1, a division bench of Justice C. Hari Shankar and Justice C. Ajay Digaonkar stayed the single judge’s order. The bench observed that Amazon had not been properly served before ex-parte proceedings began, raising due process concerns. It further noted that the original suit claimed damages of only ₹2 crore, and no amended petition was filed to justify the significantly higher award of ₹336 crore.
Supreme Court Upholds the Stay
The bench also highlighted that Lifestyle never claimed the specific amount of ₹336,02,87,000 at any stage of proceedings. Additionally, it pointed out that the single judge did not establish Amazon’s direct role in authorizing or enforcing the use of the disputed mark. Instead, conclusions were drawn based on Amazon’s agreements with Cloudtail and its dominant market role.
Consequently, Lifestyle Equities approached the Supreme Court. With its dismissal of the petition, the apex court has effectively upheld the stay granted by the Delhi High Court’s division bench on the ₹340 crore damages order against Amazon.
