Amazon Loses Trademark Infringement Case Filed By An Indian Startup

Bengaluru-based startup Happy Belly Bakes won a four-year-long trademark infringement case against ecommerce major Amazon and its associated companies –  Cloudtail India and Tootsie LLC.

According to a Mint report, the legal battle was over the trademark of the words ‘Happy Belly’. A district court in Bengaluru on August 30 ruled in favour of Happy Belly Bakes, ordering Amazon to remove all products of a similar label from its India platform.

Further, Cloudtail and Tootsie were permanently restrained from using the trademark in the country, while the court also termed their mark or logo as deceptively similar.

Founded in 2008 by Shisham Hinduja and Triphti, Happy Belly Bakes is a bakery brand that started with the cofounders making handmade chocolates on order. The business has since then expanded to reach all of Bengaluru, employing a team of 30 and offering products such as cookies, cakes and other baked goods. 

In 2010, the cofounders launched their first central kitchen at Richard’s Park in Bengaluru and then opened their first café in the city as well. Before 2016, the company was called ‘Regalar’. However, the cofounders adopted the name ‘Happy Belly’ in 2010; the trademark was registered in 2016.

However, in 2017, Hinduja and her company discovered that one of Amazon’s private labels also had the same name as theirs. Reportedly, Delaware-based Tootsie LLC attempted to register the trademark ‘Happy Belly’ in 2016 but was unsuccessful. Tootsie had applied on behalf of Amazon.

Happy Belly Bakes and Hinduja filed a lawsuit against Amazon Seller Services, Cloudtail India and Tootsie LLC.

Over the past hearings, Amazon argued that its business under the ‘Happy Belly’ brand name was different from the one run by Hinduja. The ecommerce major also argued that while its business was international, Hinduja and Triphti’s business only operated in Bengaluru.

The US-based ecommerce major also said that the Bengaluru-based startup did not have goodwill and reputation. This point was dismissed by the court, which called the contention ‘arrogance’ by Amazon.

“As such, the use of trademark Happy Belly is certainly infringing and passing off of the plaintiff’s trademark,” the court ruled.

It is prudent to mention here that Amazon has had a track record in similar cases. The ecommerce giant, under its various in-house brands such as Solimo, has been alleged of copying the products and selling them at a cheaper price on its platform.