E-commerce platforms thrive on connecting millions of buyers and sellers. But when counterfeit or trademark-infringing goods are sold through these platforms, where does liability lie?
The Delhi High Court’s decision in Lifestyle Equities CV & Ors. vs. Amazon Sellers sheds new light on the boundaries of safe-harbor protection and the circumstances under which platforms can be held responsible for what happens on their virtual shelves.
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Understanding Safe-Harbor Protection
Under Section 79 of the Information Technology Act, 2000, intermediaries (like e-commerce platforms) enjoy safe-harbor immunity they aren’t liable for third-party content or sales if they:
- Act as a neutral intermediary.
- Have no actual knowledge of infringement.
- Act promptly to remove infringing listings once notified.
This protection allows platforms to operate without constant fear of being sued for user activity but it isn’t absolute.
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The Lifestyle Equities Case: Where Safe Harbor Ends
The Facts:
- Lifestyle Equities owns the BEVERLY HILLS POLO CLUB trademark.
- Counterfeit goods bearing this mark were being sold on Amazon by various third-party sellers.
- Lifestyle Equities argued that Amazon exercised significant control over listings, packaging, and delivery, meaning it was more than just a “neutral intermediary.”
The Court’s Findings:
- Control & Involvement Matter: If a platform controls how products are described, packaged, or shipped, it moves beyond a passive role.
- Knowledge is Key: Evidence that the platform was aware (or should have been aware) of ongoing infringement weakens safe-harbor claims.
- Multiple Functions = Higher Responsibility: Amazon’s involvement in warehousing, logistics, and marketing meant it wasn’t merely hosting listings.
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Post-Lifestyle Equities: Platform Liability in Focus
This case sends a strong message to e-commerce platforms: safe-harbor protection isn’t a free pass if they actively participate in the sale process.
Key takeaways for platforms:
- Maintain transparency in your role – act as a facilitator, not a co-seller.
- Implement robust IP monitoring and takedown systems.
- Keep clear records of actions taken against infringing sellers.
Why This Matters for Brand Owners
- Better Enforcement Opportunities: Platforms with higher involvement can be sued directly, making enforcement faster.
- Proactive Monitoring by Platforms: Decisions like this incentivize e-commerce companies to crack down on counterfeits themselves.
- Reduced Dilution Risks: Stronger platform responsibility protects brand integrity online.
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Conclusion
The Lifestyle Equities ruling redefines the balance between platform freedom and brand protection in India’s digital marketplace. While safe-harbor laws remain a crucial shield for intermediaries, platforms that step into the role of active seller risk losing that immunity.
For brands, it’s a reminder that enforcement isn’t just about chasing rogue sellers — sometimes, the platform itself may need to be held accountable.
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Author:
Suresh Kumar is an Advocate at the Madras High Court and Managing Attorney at Unimarks Legal Solutions, Chennai. Since 2008, he has focused on trademark enforcement and litigation across the Madras HC IP Division, Commercial Courts, and District Courts in Tamil Nadu.
Disclaimer: The content provided here for Information purpose only; it shall not be construed as a legal advice. Last reviewed: August 2025.
