Delhi HC Stays ₹340 Cr Fine in Amazon Trademark Case

The Delhi High Court has stayed a previous order that directed Amazon to pay Rs 340 crore for infringing a registered trademark of a luxury lifestyle brand, Beverly Hills Polo Club, as reported by ET Legal. This significant development marks a turning point in the ongoing Amazon trademark case, which has drawn attention in both legal and business circles.

A division bench of Justice C Hari Shankar and Justice Ajay Digpaul passed the order while hearing Amazon’s appeal against a single judge’s ruling, which had directed the company to pay $39 million in damages to Lifestyle Equities for infringing the “Beverly Hills Polo Club” trademark.

The bench said on Tuesday, “The considerations outlined herein above make out, in our considered opinion, an exceptional case, in which it would be a complete travesty of justice to require the appellant Amazon Tech to deposit, or secure, any part of the amount decreed by the impugned judgment, in order to maintain its appeal.“

Background of the Dispute

The case stems from allegations that Amazon India allowed the sale of products under a brand name that was already registered as a trademark by another party. The complainant argued that Amazon not only listed the products but also fulfilled and promoted them on its platform, leading to what they claimed was unauthorized use of their intellectual property.

In June, a lower court passed an order instructing Amazon to deposit a fine of Rs 340 crore as compensation for the alleged violation. The decision was based on the court’s initial findings that pointed to IP infringement in e-commerce, especially by large marketplaces like Amazon, which also act as sellers through private labels or vendor arrangements.

The court said, “This, therefore, is not merely a case in which damages have been awarded against Amazon Tech without any finding, by the learned Single Judge, of involvement, in the alleged infringing activities, but is, in fact, a case where no such pleadings exist.”

Relief for Amazon in Legal Battle

Amazon challenged the verdict, claiming that it was not the seller of the said products but merely an intermediary providing a platform for third-party vendors. On Monday, the Delhi High Court issued a temporary stay on the payment directive, granting Amazon relief while it continues its appeal.

This marks a crucial moment in Amazon’s ongoing legal battle in India, where the company has consistently maintained that its role is limited to enabling commerce and that it complies with all existing intellectual property laws.

Legal experts have pointed out that the case could set a precedent for how liabilities are assigned in cases involving marketplaces and third-party listings. The outcome could have major implications for other e-commerce platforms operating in India.

Trademark and Platform Responsibility

Amazon’s brand misuse case has sparked discussions about platform accountability. If found guilty, the case would underline how marketplaces must monitor trademark violations, even if the actual seller is a third party.

At the core of the matter is whether Amazon exercised due diligence to prevent unauthorized trademark use or whether it indirectly profited from the sale of infringing goods. The case is also being followed closely by intellectual property professionals and startups, who often rely on platforms like Amazon to sell products.

The outcome of Amazon’s trademark case could become a benchmark for future cases of IP infringement in e-commerce. For now, the company’s infringing order fine has been paused, giving the company time to pursue its legal options.