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The Delhi High Court on Tuesday stayed its own order issued by a single bench in February in which Amazon Technologies was told to pay ₹339 crore in damages to Lifestyle Equities for allegedly infringing its trademark.
A division bench of justices C Hari Shankar and Ajay observed, “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.”
Lifestyle Equities had, in 2020, filed an infringement suit against Amazon Technologies and others, alleging trademark infringement involving its ‘Beverly Hills Polo Club’ brand.
Lifestyle claimed the infringing trademark appeared on apparel manufactured and sold by Amazon Technologies under its Symbol brand, and that Cloudtail India, a major seller on Amazon.in, was also involved in the sales.
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The single judge bench had, in October 2020, issued an interim injunction restraining Amazon and Cloudtail from selling the alleged infringed products. And in February this year, it awarded Lifestyle Equities damages of $39 million, approximately ~339 crore.
The court said that there was no specific finding by the single judge against Amazon Tech, identifying its role in the affixation of the mark Beverley Hills on the apparel sold by Cloudtail on the Amazon Seller Services Private Limited (ASSPL) online platform.
It added that the single judge’s findings were largely generalised in nature, concentrating on the phenomenon of e-infringement and reflecting a view that, if Amazon Tech desired, it could infringe, rather than infringing.
The division bench also said that it did not find any prima facie sustainable allegations of involvement by Amazon Tech in any infringement of Lifestyle’s registered trademark.
“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,” the bench said.
Amazon’s main appeal will come up for hearing on October 9.
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