The second instance adjudicated compensation of 750,000 yuan in the dispute over unfair competition of trademark |

Compensation of 750,000, involving the "Beijing day Red" brand right unfair competition dispute of the second instance judgment

 

"In the wind and rain, waiting in line for you", Jing Tian red fried cake, famous for its crispy skin and delicate filling, has become an olfactory landmark of old Beijing. Jing Tianhong recorded the feelings of countless old neighbors with an exclusive taste experience, and warmed a generation of Nancheng people.

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In recent years, there have been a number of "Tiger Square Bridge Jing Tian red fried cake" stores on the market, who is the legitimate right subject of "Jing Tian Red" brand?

 

The Beijing Intellectual Property Court recently concluded a dispute over unfair competition involving the brand rights of "Beijing Tianhong".

Brief of the case

Beijing Tianhong (Beijing) Catering Co., LTD. (referred to as Beijing Tianhong Company) believes that Liu, a former employee of Beijing Tianhong Company, maliciously registered the "Beijing Tianhong" trademark and the "Tiger Square Bridge" trademark of Beijing Tianhong Company, and authorized the use of Tiger's Taste Buds (Beijing) Catering Management Co., LTD. (referred to as Tiger's Taste Buds Company).

 

Liu authorized Tiger's Taste Buds company to use "Tiger Square Bridge" and "Beijing Tianhong fried cake" on the snack shop door and the use of "Beijing Tianhong" commercial logo on the snack bags it sold, including fried cake, violated the provisions of Article 6 (1) (2) (4) of the Anti-Unfair Competition Law of the People's Republic of China, constituting unfair competition, so the lawsuit was filed to the court.

 

The court of first instance held that the "Jing Tianhong" brand name and "Jing Tianhong fried cake" are relatively well-known, and Liu's use or authorization of Tiger's taste buds company and other subjects to use the "Jing Tianhong" trademark on the "fried cake" products and fried cake shop signs has obvious subjective malicious intent to adhere to the company's goodwill. And its use of the content, the way and the use of the content, the way is exactly the same, enough to be mistaken for the goods of the company, or there is a specific connection with the company, causing confusion among the relevant public, has constituted unfair competition.

 

Liu refused to accept the judgment of the first instance and appealed to the Beijing Intellectual Property Court.

 

In the second instance, Liu XX argued that Jingtianhong Company is not the subject of the legal rights of the "Jingtianhong" brand name, and the "Jingtianred fried cake" sold by it does not constitute a commodity name with certain influence, and Liu XX is the trademark owner of the "Jingtianhong" text No. 11204437 and No. 11204438. Its own use or licensing of Tiger's taste buds and other subjects to use the above "Jing Tian Hong" trademark is a legitimate and lawful exercise of rights.

 

Judge's interpretation

 

The Beijing Intellectual Property Court held that, first of all, on whether the company is the legitimate rights subject of the "Beijing Tianhong" name. Although the enterprise subject using the name "Jing Tianhong" has changed several times, its name always contains the word "Jing Tianhong", and its business address has been in "Hufang Bridge No. 7". For consumers, the "Jing Tianhong" name can be corresponding to each subject operating in "Hufang Bridge No. 7", and Jing Tianhong company has inherited the goodwill accumulated by previous business subjects. You can claim rights on the "Beijing day red" which has a certain influence.

 

Secondly, whether "Jing Tian red fried cake" is a commodity name with certain influence. The relevant reports can reflect that the company began to sell fried cake in the 1990s, and the goodwill attached to the "Beijing Sky Red" font can be passed to the goods sold in its file, "fried cake", making "Beijing sky red fried cake" become a certain influence of the product name.

 

Third, whether Liu's behavior constitutes unfair competition. Liu said that he came to Beijing in July 2003, and opened the "Tiger Square Bridge Jin three special fried cake" near the Tiger Square Bridge workers' Club in September, and he should know the "Beijing Sky red fried cake" that has operated for many years in the "Tiger Square Bridge No. 7". Its actions of applying for registration of several "Jing Tianhong" trademarks and "Hufang Bridge" trademarks and authorizing other entities to use "Jing Tianhong" trademarks on fried cake products and fried cake shop signboards have subjective malicious intentions to attach to the goodwill of Jing Tianhong Company, which is easy to be mistaken for the products of Jing Tianhong Company or there is a specific connection with Jing Tianhong Company, constituting unfair competition.

 

In summary, the Beijing Intellectual Property Court rejected the appeal and upheld the original judgment, that is, Liu stopped unfair competition, eliminated the impact and compensated Jingtianhong Company for economic losses of 600,000 yuan and reasonable expenses of 150,000 yuan.

 

Judge's note

Article 6 of the Anti-Unfair Competition Law of the People's Republic of China stipulates that a business operator shall not engage in any of the following acts of confusion to cause people to be mistaken for another person's goods or to have a specific connection with another person: (1) Unauthorized use of the same or similar marks of the name, packaging and decoration of a commodity that has a certain influence on another person; (2) Unauthorized use of enterprise names (including abbreviations, shop names, etc.), social organization names (including abbreviations, etc.), names (including pen names, stage names, translated names, etc.) that have certain influence on others; (3) Unauthorized use of the main part of the domain name, the name of the website, the webpage, etc., which has certain influence on others; (4) other acts of confusion that are sufficient to cause people to be mistaken for the goods of others or have specific connections with others.

 

In practice, some market entities use other people's well-known commodity names, enterprise names, non-trademark signs and other infringement, the purpose is to cause confusion and misidentification, in order to obtain improper benefits. Article 6 of the Anti-Unfair Competition Law regulates acts of unfair competition such as counterfeiting and confusion, and aims to protect commercial marks that have a certain influence and can play a role in identifying the source of goods or services. When a business operator unauthorized use of others have a certain influence on the commercial logo, causing people to be mistaken for other people's goods or there is a specific connection with others, shall bear the corresponding civil tort liability.

 

 

 

Contribution: Beijing Intellectual Property Court

 

Editing by Li Mengyao Rihui

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