New trend of trademark litigation in China

Astring of significant trademark lawsuits in the past couple of years in China, such as the “New Balance/Xin Bai Lun”, “Jordan”, “Wang Lao Ji” and “Qualcomm” cases, and the most recent “Red Bull” case, have sparked heated discussion in both the legal sector and the wider public community. While the general public are discovering the tremendous value in famous trademarks and brand names, legal professionals should go further to figure out the new trends of trademark litigation in China.

First and foremost, we can see a growing social impact from trademark lawsuits, especially those relating to famous trademarks and brand names that capture long-lasting attention from the public and media. The “Wang Lao Ji” dispute is a case in point. The “Wang Lao Ji” trademark was licensed to Jia Duo Bao Group (JDB Group) for a period, during which the herbal tea brand that was originally known in certain areas of south China rose quickly to national prominence owing to the non-conventional marketing approaches of JDB Group. As a result, “Wang Lao Ji herbal tea in a red can” became a well-known product of tremendous economic value. These facts aroused a great deal of public interest. Cases with similar social impact include the “Jordan” and “New Balance/Xin Bai Lun” trademark disputes.

Second, the Supreme People’s Court (SPC), as the highest judicial authority in mainland China, is increasingly involved in hearing significant trademark dispute cases. For example, in its final verdict issued in August this year in relation to the “Wang Lao Ji” dispute, the SPC ruled that as a solution, Guangzhou Baiyunshan Pharmaceutical Holdings (Baiyunshan, formerly known as Guangzhou Chinese Medicine Corporation) and JDB Group may share the title to the packaging design uniquely used for the famous product concerned, provided that the joint ownership is held in good faith, with respect for customer awareness and without infringement upon lawful rights or interests of any third parties.