Chinese IP Law Updates
July 22, 2016

Are you registering your trademark properly? Let’s learn from the analysis of recent cases in the sporting equipment industry in China.

The Higher People’s Court of Guangdong Province has delivered judgment on “New Balance” trademarkright dispute. The decision is final and rules that besides a compensation totaling RMB 5 million, New Balance Trading (China) Co., Ltd. (“New BalanceCompany”) shall immediately cease and desist from infringing upon exclusive rights attaching to registered mark “New Balance”.

At sentencing, the Defendant not only faces high amount of compensation payable, but also irretrievably loses the “New Balance”mark.
Well-known sports brand “Under Armor” files an action concerning trademark exclusive right infringement against YAN FEI LONG Sporting Goods Co., Ltd. with Higher People’sCourt of Fujian Province. Media reports reveal the compensation requested by the Plaintiff is in excess of RMB 0.1 billion.

The issue “UnderArmor” has to address is far more complicated than trademark infringement itself. Without a doubt, the ongoing dispute will affect the brand’s normal growth in China market, together with further promotion and development on China soil in days to come.
However the lawsuit is not inevitable. If “Under Armor” could pay close attention to filings and uses of its mark and logo in China, Brand Owner can surely nip such disputes in the bud through legal procedures like trademark opposition,invalidity etc..

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