Alfred Dunhill wins ‘groundbreaking’ trademark infringement case against Danhuoli
October 15, 2018 Category China News Round-up, Weekly
British luxury brand Alfred Dunhill was awarded CNY10 million in damages after a “groundbreaking” decision by a Chinese court found a local rival guilty of trademark infringement and unfair competition practices. The Foshan Intermediate People’s Court in Guangdong province also deemed the corporate representative of menswear firm Danhuoli personally liable for the infringement, giving extra teeth to the court’s decision and strengthening China’s growing reputation for intellectual property protection.
IP protection is one of the main issues in the U.S.-China trade war. U.S. President Donald Trump has repeatedly lashed out at China’s lax IPR protection laws, forced technology transfer, and alleged IP theft, saying it costs the United States as much as USD600 billion per year, a charge China has denied. Reacting to the court decision, Alfred Dunhill CEO Andrew Maag said: “Today’s ruling demonstrates Alfred Dunhill’s unequivocal resolve in tackling infringement of our IP rights in China and globally. Our system of IP management and enforcement is second to none. With the support of Rouse and Lusheng law firm, we’ve secured a fair and proportionate ruling.” Luke Minford, global CEO of Rouse, the international IP consultancy that supported the brand, said: “This win for Alfred Dunhill is a just reward for all their hard work protecting their brand in China. The decision should show other brand owners that China is finally getting serious about protecting foreign brands.”
The trademark infringement case centered around Danhuoli’s illegal imitation of the “long tail mark” of Alfred Dunhill’s globally recognized logo. Danhuoli had originally registered the “Danhuoli” trademark in plain font, but had for several years used the mark in a manner bearing striking similarities to Alfred Dunhill’s signature elongated lettering and black-and-white color palette. The budget clothes company had also established a shadow company named “Dunhill Group” in Hong Kong to manage corporate business activities for the brand. Alfred Dunhill had previously been successful in shutting down the shadow company in Hong Kong, although it continued to trade across the Chinese mainland. Danhuoli operates more than 200 franchise stores in 61 cities in China, claiming to generate an annual turnover of CNY100 million, the South China Morning Post reports.
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