Real zongzi in a fake box? The distributor infringes the trademark of Wufangzhai, a "time-honored Chinese brand"

Recently, the Shanghai Intellectual Property Court (hereinafter referred to as the Shanghai Intellectual Property Court) rejected the appeal on the trademark infringement dispute between the appellant Zhejiang Wufangzhai Industrial Co., LTD. (hereinafter referred to as Wufangzhai Company) and the appellant Shanghai Su Xianguge Industrial Co., LTD. (hereinafter referred to as Su Xianguge Company) and Shanghai Yingli Industrial Co., LTD. (hereinafter referred to as Yingli Company). The final judgment upheld. Wufangzhai company appealed to the court of first instance that "Wufangzhai" was founded in 1921, and its registered trademark has a high reputation, and has been identified as "Chinese time-honored brand" and well-known trademark. In 2018, law enforcement personnel of the Market Supervision Administration of Jing 'an District of Shanghai investigated and punished the gift boxes printed with words and graphic trademarks such as "Wufang Zhai" sold by Su Crab Ge Company. The zongzi in the gift box involved came from the authorized agent of Wufangzhai, but Wufangzhai has never produced or authorized other companies to produce and sell such gift boxes.

 

According to the investigation, Win Li company provided zongzi and gift box, Su Crab Pavilion company for combination sales, so Su Crab Pavilion company, Win Li company's behavior violated the Wufang Zhai Company No. 9720610 "Wufang" trademark, No. 10379873 "delicious Wufang" trademark, No. 331907 "Wufang Zhai" trademark exclusive right, should be jointly responsible.

 

In addition, the company sold zongzi gift boxes, and used the same trademark on the same goods, violating the exclusive right to use the trademark No. 3781249 "Wufangzhai". Five Fangzhai Company Request the court to order Su Crab Pavilion Company and Yingli Company to immediately stop producing, selling and destroying the packaging boxes and goods containing the above trademark logo, and jointly compensate for economic losses and reasonable expenses totaling 300,000 yuan.

The court of first instance held that the zongzi in the gift box involved came from the authorized seller of Wufangzhai and was genuine, and Wufangzhai company confirmed in the trial that the bulk vacuum packaging zongzi was printed with the circular pattern of Wufangzhai old man and the production date, and the packaging, shelf life and quality of the bulk zongzi were no different from the zongzi in the gift box. It can be seen that the use of basically the same logo as the registered trademark on the package of the gift box involved in the case did not destroy the function of the trademark indicating the source, nor the function of the trademark quality assurance, so the behavior of Su Xuange Company and Yingli Company did not violate the rights of registered trademarks No. 9720610, 10379873 and 331907. Su Xiangge Company in the sales of the involved gift box highlighted the "Wufang", "delicious Wufang" and "Wufang Zhai" logo, which constitutes the use of the trademark law, without the permission of the trademark registrant, the use of the same trademark with the registered trademark on the same kind of goods, violating the exclusive right to use the registered trademark No. 3781249 of Wufang Zhai Company. Taking into account the popularity of the trademark involved in the case, the degree of subjective fault of the infringer, the impact of the infringement, the legal fees paid by Wufangzhai Company and other factors, and considering that the zongzi in the gift box involved in the case is indeed from Wufangzhai Company,The amount of compensation and reasonable expenses amounted to 30,000 yuan.

Wufangzhai Company refused to accept the first instance judgment, and appealed to the Shanghai Intellectual Property Court, believing that the first instance judgment found that the actions of Su Xuange Company and Yingli Company did not violate the rights of registered trademarks No. 9720610, 10379873 and 331907 were wrong, and the amount of compensation was too low.Request according to law, Su Crab Pavilion company and Win Li company jointly compensate for economic losses of 150,000 yuan.

After hearing, the Shanghai Intellectual Property Court held that in this case, the bulk zongzi of Su Xangge Company and Yingli Company from Wufangzhai Company will be packaged into the gift box of unknown origin but similar in appearance to the genuine gift box of Wufangzhai Company, and then sold in the name of Wufangzhai Zongzi gift box. The use of "Wufangzhai", "Delicious Wufang" and "Wufang" on the outer packaging of the gift box is similar to or basically the same as the registered trademark, which infringes the exclusive right to use the registered trademark No. 9720610, 10379873 and 331907 of Wufangzhai Company, and shall bear the liability for compensation.

 

The reasons are as follows :1. Although the bulk dumplings are genuine products from Wufangzhai Company, the dumplings gift box accused of infringement is not the same as the genuine zongzi gift box of Wufangzhai Company, and the outer packaging and sales price are different; 2. From the perspective of the category of goods approved for use in registered trademarks, gift box Zongzi is also a zongzi commodity, so the behavior of Su Crab Ge Company and Yingli Company belongs to the use of trademarks similar to registered trademarks on the same kind of goods; 3. Packing bulk zongzi into fake gift boxes for external sales will cause confusion and misidentification of gift box zongzi products by the relevant public, destroy the relationship between the registered trademark on the gift box and the source indication of the goods in the gift box, occupy the market share of genuine gift box Zongzi, and affect the business reputation of Wufangzhai Company.

 

Therefore, the court of first instance found that the actions of Su Crab Ge Company and Yingli Company did not violate the rights of registered trademarks No. 9720610, 10379873 and 331907, which belong to the error of applicable law and should be corrected. In addition, according to the available evidence, Su Crab Pavilion company, Win Li company's sales volume is small, the profit is not high, the average difference between the five Fangzhai company's bulk Zongzi and the gift box Zongzi is not large, and Su Crab Pavilion company, Win Li company did buy the bulk Zongzi of the five Fangzhai company, did not cause greater losses to the five Fangzhai company.In summary, the Shanghai Intellectual Property Court believes that the "five Fang Zhai" genuine zongzi packaging sales constitute trademark infringement, but after comprehensive consideration of the case for the original judgment to maintain the amount of compensation, so the above judgment.

 

Source: Trademark Knowledge Circle

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