Weekly China Trademark News Updates

July 7, 2021

1. The CNIPA solicits comments from the public regarding the “Measures for the Coordinated Governance of Illegal Employment in the Patent and Trademark Agency Industry, Collusions between Examiners and Agencies, etc. (Draft for Solicitation of Comments)“

On July 5, 2021, the CNIPA published the Measures for the Coordinated Governance of Illegal Employment in the Patent and Trademark Agency Industry, Connections between Examiners and Agencies, etc. (Draft for Solicitation of Comments) (“Measures”) to solicit public comments. The Measures aim to maintain the market order of the patent and trademark agency industry, create a fair and just market competition environment, and severely crack down on illegal employment of patent and trademark agency industry and the collusion of examiners and agencies. The Measures list some behaviors that should be included in the blacklist of illegal behaviors of patent and trademark agency industry and restraint and management measures for the blacklisted personnel.

2. Santak was awarded a RMB 1 million punitive damages against the infringer

Santak Electronic (Shenzhen) Co., Ltd. (“Santak”) brought Hangzhou Lingguan Electronics Co., Ltd. (“Lingguan”) to the court for a trademark infringing lawsuit based on its exclusive right to use registered trademarks Nos. 512382 “,” 7892420 “,” and 512838 “.” The first instance court found that Lingguan’s use of words such as “CSTK” and “Santak” as its goods name, drawings, and packaging of its goods constituted as trademark infringement and ordered Lingguan to compensate Santak for its economic losses and reasonable expenses of RMB 150,000 (USD 23,200). Santak was unsatisfied with the judgment on the economic loss ordered and appealed to the second instance court. The second instance court found that Santak had requested the first instance court to multiply Lingguang’s profit as punitive damages, however, the first instance court erred by directly applying statutory damages against Lingguang, which was not in compliance with the Chinese Trademark Law. The second instance court found that based on the circumstances at hand punitive damages should be ordered against Lingguang, the second instance court then doubled Lingguang’s profit as the final punitive damages amount and in support of Santak’s economic losses claim of RMB 1 million (USD 154,662).

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