Weekly China Trademark News Updates

June 16, 2021

1. Vans won punitive damages of RMB 1 million in a trademark infringement case

Vans, Inc. (“Vans”) owns a registered trademark “” in class 25 (“Cited Mark”). The Cited Mark has reached high fame through use and promotion. The defendant Zhejiang Kaibang Footwear Co., Ltd. (“Kaibang”) repeatedly used logos that were almost identical with the Cited Mark on shoes related products. The first instance court found that Kaibang infringed upon Vans’s trademark right and should be held liable. The court ordered Kaibang to immediately stop the infringement and compensate Vans for its loss. The court considered Kaibang’s continuous infringement by reference the intent of punitive damages, increased Kaibang’s liability for compensation, and ordered Kaibang for economic losses of RMB 1 million (USD 156,000). Recently, Kaibang withdrew the second-instance appeal, and the above-mentioned first instance judgment has taken effect.

2. Unauthorized Red Bull products were banned

On May 28, 2021, the Changsha Intermediate Court of Hunan Province issued an injunction in accordance with the law. The ruling ordered that Changsha Huaxia Sugar and Liquor Co., Ltd. (“Huaxia”) to immediately cease selling beverage products not authorized by Thailand Tencel Healthcare Co., Ltd. (“Tencel”) but containing the “Red Bull” series trademarks. This is yet another injunction after the previous one issued by the Chaoyang People’s Court of Beijing on May 12, 2021, which ruled that Beijing Hualian Supermarket Co., Ltd. should immediately cease selling the “Red Bull Vitamin Functional Drink” produced by Red Bull Vitamin Beverage Co., Ltd.

The Changsha Intermediate Court of Hunan Province found that based on the evidence provided by Tencel and the Supreme Court’s judgment, Tencel was the exclusive right holder of the “Red Bull” series of registered trademarks. The court ordered Huaxia to immediately stop selling Red Bull products that are not legally authorized by Tencel and the ruling would be immediately effective.

3. TikTok was sued for jointly liable for livestream that sold infringing products

Agatha Diffusion SARL (“Agatha”) owns the prior registered trademark “AGATHA” in class 25 on clothes related goods. Agatha authorized Saishi Trading (Shanghai) Co., Ltd. (“Saishi”) in China with an exclusive license to use “AGATHA” related trademarks. Saishi discovered that Laizhou Hongyu Crafts Co., Ltd. (“Hongyu”) was selling bags labeled with its authorized trademarks on TikTok during a livestream. Saishi sued both Hongyu and TikTok for trademark infringement. The Haidian People’s Court of Beijing held that Hongyu was liable for Saishi’s loss of RMB 300,000 (USD 47,000) and reasonable legal costs. The court found that TikTok had done its due diligence and should not be held jointly liable.

4. L’Occitane won RMB 9 million judgement for a trademark infringement

Laboratoires M&L, Société Anonyme (“M&L”) is an internationally renowned multinational company producing fragrance, facial, and body care products. Since 2008, L’Occitane Sakura series body lotion and shower gel (body wash) products have entered China, and in 2016, the cherry blossom graphic trademark was registered.

Zhejiang Junda Biological Technology Development Co., Ltd. (“Junda”) and Guangzhou Ailian Cosmetics Co., Ltd. (“Ailian”) sold body lotion products with cherry blossom patterns on the e-commerce platforms. The packaging and appearances of the products sold were very similar to the appearance of L’Occitane Sakura body lotion. M&L sued Junda and Ailian for trademark infringement and unfair competition. The Hangzhou Intermediate Court found that the actions of Junda and Ailian constituted trademark infringement and amounted to unfair competition. The Zhejiang High Court affirmed the first instance judgment.

5. 21 milk tea shops in Shanghai were fined for RMB 1.06 million for infringing the “COCO and Design” trademark

In April 2021, the Putuo District Administration for Market Regulation confiscated and destroyed the tools used to manufacture infringing goods using the registered trademark “COCO and Deisgn” by 19 business entities in 21 milk tea shops and issued a total of RMB 1.06 million (USD 165,600) in fine.

Through consumers’ complaints that allegedly purchased counterfeit milk tea products labeled the “COCO Du Ke in Chinese” logo, the Putuo District Administration for Market Regulation found that an individual used the word “COCO” prominently on shop signboard and milk tea cups, which was infringing on the exclusive right to use the registered trademark of “COCO and Design.” The Putuo District Administration for Market Regulation imposed administrative penalties according to the Chinese Trademark Law.

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