Resources
Sep 09,2020
Express n° 22 Case: TM | SPC awards 2 million damages to UNDER ARMOUR in a civil suit against copycat UNCLE MARTIAN
On March 10, 2020, China Supreme People’s Court
(SPC) maintained the first instance decision made by the Fujian High Court,
ruling in favor of UNDER ARMOUR, Inc. in a trademark
infringement and unfair competition lawsuit against Tingfeilong, a sporting
goods company in Fujian Province.
The SPC affirmed that Tingfeilong’s use of the
mark “UNCLE MARTIAN & DEVICE” (as shown below) in the brand launching ceremony,
in the advertisement soliciting business partners, in the promotional pictures
at its business premise, as well as in the brochures and the sample shoes,
basketballs and other products, constituted trademark use and infringed the
plaintiff's trademark rights; and the use of the company name “安德玛(中国)有限公司” (Under Armour (China) Co.,
Ltd. in Chinese) constituted unfair competition.
The defendant argued that UNDER ARMOUR furnished no evidence
to prove its actual manufacturing and distribution of the accused infringing
sportswear, therefore trademark infringement could not be established. The SPC rebutted
that: 1) “using trademarks for advertising, exhibition and other commercial
activities for the purpose of identifying the sources of goods” (Article 48) falls
under trademark use; and 2) using an infringing trademark on the “same kind of
goods” or on “similar goods” (Art.57(2)) cover not only the goods that have
been actually manufactured and sold but also those to be manufactured and
distributed.
The SPC therefore awarded UNDER ARMOUR damages of RMB
2,000,000, considering the high reputation of the plaintiff’s registered
trademark, the defendant’s bad faith in deliberately causing confusion and its continuous
infringing acts in defiance of the court injunction, esp. the attorney fees RMB
600,000 that the plaintiff incurred to stop and eliminate the adverse effects
of the infringement.
Contributed
by: Yilin Wang