Delhi High Court imposes Rs 340 crore penalty on Amazon for trademark violation

New Delhi: The Delhi High Court has fined Amazon Rs 340 crore for trademark infringement involving the "Beverly Hills Polo Club" brand. 

The ruling, handed down by Justice Prathiba M Singh, has reinforced the importance of safeguarding intellectual property rights in India’s rapidly growing online marketplace.

The legal battle began in 2020 when Lifestyle Equities CV, the Netherlands-based owner of the "Beverly Hills Polo Club" trademark, accused Amazon of allowing third-party sellers on its platform to market counterfeit products bearing the brand’s logo. 

The plaintiff argued that Amazon’s negligence in monitoring its marketplace facilitated the sale of unauthorised goods, damaging the brand’s reputation and causing significant financial losses.

During the proceedings, Lifestyle Equities presented evidence of multiple listings on Amazon India featuring products such as apparel, accessories, and fragrances that misused the trademarked logo—a distinctive polo player on horseback. 

Despite Amazon’s defense that it acted merely as an intermediary and could not be held liable for third-party actions, the court ruled that the e-commerce giant failed to exercise due diligence, thereby enabling the infringement.

Justice Singh emphasised that platforms like Amazon, which profit from the sale of goods, have a responsibility to ensure compliance with trademark laws. “The scale of Amazon’s operations does not absolve it of accountability,” the judge noted in her ruling. “E-commerce entities must implement robust mechanisms to prevent the sale of counterfeit products.”

In addition to the Rs 340 crore penalty, the court has directed Amazon to remove all infringing listings from its platform within 30 days and to submit a compliance report. 

The fine is one of the largest ever imposed in India for a trademark violation, signaling a stricter judicial stance on intellectual property disputes in the digital age.

Amazon India issued a brief statement acknowledging the verdict and stating that it is “reviewing the order and evaluating all options, including an appeal.” The company reiterated its commitment to protecting intellectual property and highlighted its existing policies to combat counterfeit sales.