On May 6, 2020, the Guangzhou IP Court upheld a first instance judgment rendered by the Guangzhou Nansha People’s Court, dismissing the trademark infringement claim against parallel imported products. The appeal court found that: 1) the alleged infringing products are genuine products made by German OBO company. Despite of being parallel imported, such products have no substantial difference in terms of visual appearance, product characteristics and quality grade with those authorized to be distributed in Chinese market; 2) there is no explicit regulation banning parallel import within China’s legal framework. Without alteration, the alleged infringing products harm neither the trademark’s function to guaranty nor the quality of products. Hence, no trademark infringement can be established.

This decision reaffirms the judicial practice that import of non-counterfeit goods without the express permission of the trademark owner is not illegal in China, provided that the imported products comply with China’s compulsory certification requirements and the importer does not modify, in any way the imported product.

Contributed by: Zhigang Zhu