Lessons to Be Learned from Apple Losing Their Apple Trademark for a Game Console in China

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(By You Yunting) In the end of 2013, the Beijing Higher People’s Court rejected Apple Inc.’s trademark opposition towards “苹果” trademark (read “Pingguo” in Chinese and referring to “Apple” in English) under Class 28 for game console against Zhongshan Readboy Electronics Co., Ltd. Thereafter, Apple Inc. has gone through 4 procedures, including the Trademark Office’s opposition proceeding, TRAB’s review procedure and two administrative actions and ultimately lost the “苹果” trademark under Class 28 for game console. The following are abstracts from the judgment of the final trial and our comments.

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Could an Additional Proof be Admitted in the TRAB’s Trademark Review?

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(By Luo Yanjie) Abstract: The general principle of copyright authorship centers on the signature in the work pursuant to the Copyright Law. The Trademark Review and Adjudication Board shall determine the proof that provided by the administrative counterparty with strict and cautious attitude and consider the changes together with the combination of legal facts and objective conditions so as to make a ruling that protects the right holders’ legitimate rights and interests.

The people’s court shall have the right to revoke the ruling made by the Trademark Review and Adjudication Board (the “TRAB”) and order the TRAB to remake a ruling. For how the TRAB deal with the additional evidences provided by the administrative counterparty during the period of re-ruling, there are no clear laws and regulations. In today’s post, we would like to introduce a typical case with readers.

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How to Solve the Language Conflict between Foreign and Chinese-Language Trademarks?

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(By You Yunting) When applying for trademark registration in China, foreign companies are often puzzled by an issue arising out of a translation of a foreign trademark into Chinese being rejected by the Trademark Office due to a language conflict with some preexisting trademark. In our experience, however, if an applicant can prove to the court that its trademark won’t cause confusion with previously registered trademarks, there is a great chance of success in a foreign trademark ultimately being registered. As follows, we will introduce a case where a Chinese court supported the Japanese Shiseido Ltd. Co. in applying for registration of its BéNéFIQUE trademark.

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How Mobile Game Protects its Intellectual Property Right?

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(By You Yunting) Recently stock markets have heightened topics about mobile game and serious competition disputes of intellectual property rights (the “IPR”) between China mobile games enterprises are often appeared in the newspapers. According to the reports, Beijing Chukong Inc., the developer of popular “捕鱼达人”(Fishing Joy) mobile games, was engaged in a controversy of IRP because earlier in December the Guangzhou-based SEALY Technology suspected Beijing Chukong Inc.’s “捕鱼达人”(Fishing Joy) of plagiarism on its arcade game product “捕鱼达人”. In response, Beijing Chukong Inc. alleged that: first, the online time of its “捕鱼达人”(Fishing Joy) was earlier than that of SEALY Technology and its mobile game had been reported to the Ministry of Culture. Second, Beijing Chukong Inc. owns the “捕鱼达人”trademark. Third, there are significant differences in art images and playing methods between two products.

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Why China’s Courts Held an Ambiguous Attitude to the Rush Registration of Another’s Works as a Trademark?

When handling a dispute between trademark and copyright, Chinese courts always apply a rather high standard to determine whether works protected under trademark law will also receive protection under the copyright law. Our website previously discussed this question in the posts Analysis on Proof Requirements in Figurative Trademark Infringing Others’ Copyright Cases by China Court and Why the Calligraphic Character’s Copyright Failed to Defeat Trademark Right.Today, we’d like to introduce a case regarding conflicts between a work of fine art and a trademark, due to the identical combination of Chinese characters and English letters.

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China Supreme Court Issued A New Typical Trademark Infringement Case of OEM

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(By You Yunting) As a big manufacturing country, China deals with a lot of products categorized as original equipment manufacturing (the “OEM”). With regard to whether OEM constitutes trademark infringement, where local courts had handed out different decisions and infringing standards for this problem, the Supreme People’s Court has not yet expressed a clear standard for determining. Recently, China’s Supreme People’s Court has published the 2012 Top 50 typical trademark cases, and, among them, there is a case concerning OEM trademark infringement, where the manufacturer of an OEM won an infringement claim against it by the trademark holder. From the SPC’s decision in this case, we find rather clear evidence of the court’s attitude toward this particular issue.

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Can Carnival Films Retake the Downton Abbey Trademark Squatted in China?

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(By Luo Yanjie) According to a recent report by the British Broadcasting Corporation (BBC), the British television series Downton Abbey (In Chinese, translated as “唐顿庄园 Tangdun Zhuangyuan”), which is very popular in China, and Carnival Films, who produced Downton Abbey, was attempting to sell Downton (in Chinese, Downtown is translated as “唐顿 Tangdun”) branded wine in the North American, European and Australian markets. However, according to a disclosure by the State Trademark Office, some Chinese merchants drew first blood, registering the “唐顿庄园 Tangdun Zhuangyuan” trademark and subsequently obtaining rights in the trademark. This news also pointed out that a Shandong-based Merchant Li Xiangjun had already received ownership of the “唐顿庄园 Tangdun Zhuangyuan” trademark for wines in China.

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Why the Calligraphic Character’s Copyright Failed to Defeat Trademark Right?

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Abstract: To determine whether a prior copyright could defend itself against a later trademark right, whether the foundation of copyright exists should be the first enquiry. That is to say, it is worthy of discussion whether an author receives copyright for a single calligraphic character in calligraphic works.

Pursuant to China’s laws and regulations, prior ownership of copyright in a work is a defense against a later trademark right. In determining whether a prior copyright can defend itself against a later trademark right, however, the first matter to be decided is whether the foundation of copyright exists. That is, whether the author obtains copyright for a single calligraphic character in calligraphic works. In today’s post, we will introduce and discuss a typical case as follows:

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Why did Chinese Courts Reject Perfetti’s Counterclaim for Unfair Competition?

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(By You Yunting) Perfetti Van Melle Confectionery (China) Co., Ltd. (“Perfetti”) has a well-known candy named Alpenliebe, whose slogan is “浓浓奶香情 Nong Nong Nai Xiang Qing”. “浓浓 Nong Nong” refers to a strong scent, while “浓浓奶香情 Nong Nong Nai Xiang Qing” in English refers to a “strong milk taste,” i.e., the candy is notable for its rather strong milky flavor. A Zhejiang-based company owned the “浓浓 Nong Nong” trademark under the classification for candies, and filed a lawsuit accusing Perfetti of infringement and unfair competition for its use of that slogan. In today’s post, we will introduce relevant legislation on substantiality and procedure in this particular case.

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A Trademark Infringement Dispute Caused by Recycled Budweiser Bottles

(By You Yunting)To save costs, Chinese beer manufacturers have been using recycled bottle to refill beer, and while most large-scale beer manufacturers will engrave their trademarks into their glass bottles, as well as recycle their own bottles. However, for small-scale beer manufacturers, such practices are impractical, and when small beer manufacturers use other larger manufacturer’s bottles with their trademarks, all the ingredients for trademark infringement are present. In today’s post, we will introduce to you two cases heard by two different courts concerning the same issue. 

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How to Judge the Validity of Trademark Transfer without Inner Approval of the Company in China

(By Albert Chen) Abstract:

When a company’s trademark agent transfers a trademark without approval, a judgement of the validity of said transfer requires not only a consideration of the company approval, but also a determination of the third party good faith in the transfer. When a condition is not fulfilled the transfer will invariably be considered invalid.

Case Introduction:

In 2001, Leidi (China) Co., Ltd. (“Company L”) was granted the exclusive right in the use of the trademark “雷迪” (read as “Leidi” in Chinese). In November of 2002, Wu, as the executive director of Leidi China, transferred the trademark to the Hua Qu Duo Investment Company (“Company H”). The State Trademark Office made an announcement regarding the transfer in October 2003. Subsequently, Company H licensed the trademark to the Shanghai-based Leidi Mechanics Co., Ltd. (“Company S,” which had no affiliation with Company L).

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Is an “A+B” Combined Trademark Substantially Similar to a Separate “B” Trademark?

(By Luo Yanjie) The Taiwan-based Yilan Food Industry Co., Ltd. (“Yilan”) is a well-known food manufacturing company, and owns the registered trademark “旺旺” (read as “Wang Wang” in Chinese) in several classes. Alibaba (China) Co., Ltd. (“Alibaba”) is a renowned e-commerce company based in Mainland China; it owns and maintains a subsidiary that develops and promotes its instant messaging software called “淘宝旺旺” (read literally as “Tao Bao Wang Wang” in Chinese). When Alibaba attempted to register the trademark for its software application, Yilan immediately filed a protest against it. In today’s post, we will concentrate primarily on this case. The main issue surrounding the case is relatively simple: a trademark can be considered a type of rare “resource” for its owner to make use of, and if in this case the trademark “旺旺” is already owned and registered by another entity, does it seem reasonable that a subsequent registrant simply attaches the prefix “淘宝” to it to avoid inevitable issues surrounding confusion as a result of the similarity of the two?

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How to Judge the Validity of Trademark Transfer without Inner Approval of the Company in China

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(By Albert Chen) When a company’s trademark agent transfers a trademark without approval, a judgment of the validity of said transfer requires not only a consideration of the presence (or lack of) company approval, but also a determination of whether there was good faith when considering the third party in the transfer. When it can be shown that no inner-company approval was made, and that the transaction was not undertaken in good faith, such a transfer will invariably be considered invalid.

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Can “屌丝” Serve as a Trademark or Online Game Name in China?

(By You Yunting) Recently, Mr. Shi Yuzhu, the senior executive of Giant Inc. has once again entered the flurry of public opinion. The main reason is that he claimed on his Weibo that the company has applied for 屌丝 as a trademark, and he also joked that anyone using the term must pay the company one yuan. (屌丝 (diaosi) means pubic hair in Chinese, but it has been used on the internet to popularly refer to losers). Curious about Mr. Shi’s words, the author checked the Trademark Office’s database for the application for 屌丝 in classes concerning online games. Perhaps because the application was filed recently, there is no indication of Giant Inc.’s application in the database. But, the author also found that Giant’s opponent, Suzhou Woniu Company, has applied for the trademark 屌丝侠 in Classes 9, 38, 41, and 42 on May of 2012, and all of these application are related to online games.

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How Does the US Government Determine Whether the Parallel Import of Trademarks Is Legal?

Record III of the Visit to New York

(By You Yunting) From late of March, the author visited the US at the invitation of the US government in order to get a better understanding of how the US IPR system operates. On Monday of the second week there, the author visited Wiggin and Dana LLP and Pryor Cashman LLP, two New York law firms. The law offices visited on that day were all in New York’s central business district and had spacious offices, with luxurious decorations, and the view outside was all of beautiful river scenery or of the Apple Countdown. The following is the record of that day’s visit.

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