Amazon loses trademark appeal as UK Supreme Court confirms targeting British consumers
Lifestyle Equities alleged that Amazon's US website infringed its trademarks by selling US-branded goods to consumers in the UK
In a significant legal blow to Amazon, the UK Supreme Court has upheld a ruling that the ecommerce giant infringed UK trademarks by targeting British consumers on its US website.
The case dates back to 2019 when Lifestyle Equities initiated legal proceedings against Amazon in London, alleging the tech giant infringed its registered trademarks in the UK for the words 'Beverly Hills Polo Club', along with a corresponding logo used across various product categories.
Lifestyle Equities alleged that Amazon's US website infringed its trademarks by advertising and selling US-branded goods to consumers in the UK.
Initially, Lifestyle Equities' claim in England was dismissed, but the company pursued an appeal, leading the Court of Appeal in London to rule in 2022 that Amazon's offers for sale of US-branded goods targeted consumers in the UK and that Amazon was guilty of trademark infringement.
Consequently, the Court of Appeal granted an injunction against two Amazon defendants and permitted Lifestyle Equities to pursue damages resulting from the infringement.
Amazon escalated the legal battle to the UK Supreme Court, hoping for a reversal of the previous ruling. However, in a unanimous decision, the Supreme Court dismissed Amazon's appeal.
Lord Briggs and Lord Kitchin delivered a joint judgment, supported by the entire court, affirming that Amazon's actions constituted targeting consumers in the UK.
The court found that Amazon displayed US-branded goods on its US website and made them available for shipment to the UK.
The crux of the matter lies in the automatic inclusion of check boxes on Amazon's website stating "Deliver to United Kingdom" when a user is detected to be based in the UK.
According to the Supreme Court, this feature constitutes targeting the UK as a destination for the US branded goods.
As a result of the Supreme Court's ruling, the injunction and order for an inquiry into damages issued by the Court of Appeal remain in force, signalling a significant victory for Lifestyle Equities.
This ruling sets a precedent for ecommerce platforms operating internationally, highlighting the importance of adhering to trademark laws and ensuring compliance with regulations governing cross-border trade.
Jemma Green, an intellectual property lawyer at Addleshaw Goddard, told Reuters that the ruling signifies that brand owners now possess "far stronger rights" to prevent website operators located outside the UK from targeting consumers within the country.
Dennis Lee, an intellectual property partner at BDB Pitmans, said the ruling might open the door to similar legal actions against other online retailers.
He stressed that any website providing shipping services to the UK must now explicitly ensure it avoids "targeting" UK shoppers or verify that the goods being sold do not violate UK trademarks.
Amazon has yet to comment on the Supreme Court's decision.