Luxury brand owner successfully enforces its rights
China
Legal updates: case law analysis and intelligence
The Beijing First Intermediate People’s Court has handed down a judgment in favour of well-known trademark owner Cartier International NV.
Cartier sued Shanghai A-Zenith and Beijing A-Zenith (collectively A-Zenith, as these are related companies), alleging that A-Zenith had:
Cartier sued Shanghai A-Zenith and Beijing A-Zenith (collectively A-Zenith, as these are related companies), alleging that A-Zenith had:
- infringed Cartier's registered marks CARTIER and ??? by using them without authorisation on furniture; and
- made false and misleading online advertisements which associated the marks with the furniture sold by A-Zenith.
Cartier also sued Beijing Easyhome Gold Source Household Building Materials Market for selling the infringing furniture in physical stores.
A-Zenith argued that:
- it had never used the marks on furniture;
- the marks were used by Cartier on jewellery; and
- A-Zenith was selling only furniture.
A-Zenith further argued that:
- it had not infringed the marks, nor made any false or misleading advertisements;
- Easyhome did not sell or distribute the infringing furniture; and
- Easyhome had asked its tenant (A-Zenith) to remove the marks from the shop signs.
The Beijing First Intermediate People’s Court first recognised that CARTIER has been a well-known mark in respect of jewellery since 2004.
The court then accepted that, on the facts, the marks were not used on the furniture itself. However, the court found that A-Zenith did use the marks on shop signs and did make false and misleading online advertisements associating the marks with the furniture.
The court then accepted that, on the facts, the marks were not used on the furniture itself. However, the court found that A-Zenith did use the marks on shop signs and did make false and misleading online advertisements associating the marks with the furniture.
A-Zenith knew that the marks were well known in respect of jewellery. Therefore, by using these on online advertisements, A-Zenith had committed an act of unfair competition. The court also held that, since Easyhome had previously asked A-Zenith to remove the marks from the shop signs, it was not liable for trademark infringement.
The court ordered that A-Zenith:
- remove the marks in all its business dealings and advertisements;
- publish a statement of apology to negate the diluting and negative influence of the infringing use of the marks; and
- pay Cartier Rmb150,000 in compensation.
This decision is yet another victory for well-known mark owners - it bodes well for the future of enforcement of trademark rights by luxury brands and multinationals in the Chinese mainland.
Ai-Leen Lim, Bird & Bird IP (Beijing) Co Ltd, Beijing and Hong Kong
Copyright © Law Business ResearchCompany Number: 03281866 VAT: GB 160 7529 10