TrademarksAMAZON Decision of the UK Supreme Court: The Limits of the Principle of Territoriality of the Trademark

December 27, 2024

UK Supreme Court Rules Against Amazon in Landmark Trademark Infringement Case

In today’s globalized digital economy, Amazon operates as an e-commerce giant, offering a vast range of products and marketing services across borders with few geographical limitations. However, this global reach has also led to legal challenges—particularly in the realm of trademark infringement.

In a recent decision, the UK Supreme Court ruled against Amazon UK Services Ltd in the case Lifestyle Equities CV v. Amazon UK Services Ltd, addressing the issue of trademark infringement arising from internet sales directed at UK consumers through Amazon’s US website.

The dispute centered around the sale and marketing of goods bearing a trademark registered in the United States, which was identical or similar to the “BEVERLY HILLS POLO CLUB” mark registered in the United Kingdom. Both marks covered the same or similar classes of goods. Lifestyle Equities, the UK trademark owner, argued that Amazon was infringing its rights by offering these goods to UK and EU consumers via Amazon.com (the US platform).

A key question before the Court was whether the US-based website could be considered as targeting consumers in the UK. The Supreme Court applied the “average consumer” test—assessing whether a reasonably well-informed and observant consumer in the UK would perceive that the website was directed at them.

The Court concluded that the Amazon US website did, in fact, target UK consumers. This was based on several indicators, including:
(i) the consistent presence of messaging offering delivery to the United Kingdom on the landing page and most subsequent pages,
(ii) information indicating which products could be shipped to the UK,
(iii) UK-specific delivery estimates, and
(iv) the option to pay in British pounds (Sterling).

Accordingly, the Court dismissed Amazon’s appeals and affirmed that such activities amounted to a targeting of UK consumers—thus opening the door for potential liability for trademark infringement under UK law.

 

Author:

YAGMUR AKTAN

Trademark Counsel

yagmur.aktan@invokat.com

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