China News Service, Guangzhou, September 23 (Fang Weibin, Liang Yanhua) Reporters learned from the Guangzhou Yuexiu District People's Court on the 23rd that the court recently concluded a case involving trademark infringement and unfair competition disputes.
The defendant used a logo that was similar to the plaintiff's previously registered trademark, counterfeited the decoration of the plaintiff's online store, and sold similar products in large quantities. This was found to constitute trademark infringement and unfair competition. The court awarded compensation of RMB 5 million within the statutory compensation range. The judgment was upheld by the Guangzhou Intellectual Property Court at the second instance and has come into effect.
The notice stated that the plaintiff Sanliren (Shenzhen) Technology Co., Ltd. registered a series of trademarks such as "Jiao Nei" in 2016. The "Jiao Nei" trademark was selected into the list of key trademarks in Guangdong Province. Its official flagship store has been operating for a long time and has developed its own style in terms of overall page design, product display, and introduction methods. The defendant Guangzhou Youmou Clothing Co., Ltd. and its sole proprietor shareholder Wu Moumou have successively registered trademarks such as "JIAODIAN" and "JIAODIAN Jiaodian" since 2018 and opened online stores to sell similar products. Lingmou (Hangzhou) Technology Co., Ltd. and Hangzhou Runmou Clothing Co., Ltd. acted as sellers to promote and sell the products in large quantities.
Since November 2023, the State Intellectual Property Office has successively ruled to declare the "Jiaodian" series of trademarks invalid. A company named You filed an administrative lawsuit and the invalidation ruling was upheld in the final instance. However, it has since repeatedly applied for similar trademarks and continued to sell them. After comparison, the logos, background colors, box elements, promotional slogans, product display pictures, etc. of each defendant's online store are highly similar to the overall visual effect of the plaintiff's online store.
The defendant argued that the "Jiaodian" logo had been approved for registration at the time of the lawsuit and was used in good faith, and the decoration of the plaintiff's online store was not distinctive. The court held that the exclusive right to use a registered trademark that was declared invalid was deemed to have never existed from the beginning. The defendant’s use lacked a legitimate basis for rights and constituted trademark infringement. The overall decoration of each defendant’s online store was basically the same as that of the plaintiff. Some consumers misunderstood the trademark in the evaluation area, which constituted counterfeiting. When it was difficult to accurately determine the rights holder's losses, profits from infringement, and licensing fees, the court applied statutory compensation and ordered each defendant to cease infringement and publish a statement on the platform for fifteen consecutive days to eliminate the impact; You Company compensated 5 million yuan for economic losses and reasonable expenses, Wu Moumou assumed joint and several liability, and Ling Company and Run Company were jointly and severally liable for 2.5 million yuan and 70,000 yuan of the compensation respectively.
The second instance held that the trademark and the decoration of the online store complement each other. The defendant continued to use the trademark after it was declared invalid until August 2024. During the dispute, it failed to fulfill its duty of prudence and expanded confusion. Deliberate counterfeiting cannot be regarded as good faith, so it rejected the appeal and upheld the original judgment.
