Dunhill awarded CNY10 million after the Foshan Intermediate People’s Court

Fighting trademark cases can be a long, tough battle in China but in October 2018, Richemont’s Alfred Dunhill brand hailed a “major trademark victory” in the country with the luxury brand awarded “uncommonly large” damages by a Chinese court.[1]

It also said the ruling is a “landmark victory in China for any global brand” and “demonstrates the country’s progress in IP protection,” as well as its own “unequivocal resolve” in tackling infringement.[2]

The brand has been awarded CNY10 million ($1.47 million) after the Foshan Intermediate People’s Court, Guangdong Province, ruled that lower-priced menswear brand Danhuoli was guilty of both trademark infringement and unfair competition practice. The court ordered Danhuoli – which reportedly brings in nearly $15 million in annual revenue by trading on the Dunhill likeness – to pay Dunhill a $1.47 million sum and to permanently cease all use of the infringing logo.[3] The 10 million CNY is significantly larger than the average amount awarded in trademark infringement cases in China, making this case particularly important in China's move towards better IP protection regulations.[4]

The judge also deemed that the individual responsible for the company was personally liable for the infringement, giving extra teeth to the court’s decision and strengthening China’s growing reputation for intellectual property protection,” it added.

The case centred around Danhuoli’s imitation of the ‘long tail mark’ of Alfred Dunhill’s logo. The Chinese company 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 colour palette.

The discount clothes company had also established a shadow company named ‘Dunhill Group’ in Hong Kong, to manage corporate business activities for the brand.Dunhill.[5] Alfred Dunhill had previously been successful in shutting down the shadow company in Hong Kong.

China has been focusing more and more on cracking down on IP infringement over the past decade, and this case marks a milestone in its progress as it aims to align its IP rights regime with other developed systems, such as the ones in the US and Europe.

 

[1] IPR Daily, 16.10.2018, http://www.iprdaily.com/article/index/15057.html

[2] Fashion Netwok, Sandra Halliday, 10.10.2018, https://uk.fashionnetwork.com/news/Dunhill-wins-China-trademark-battle-h...

[3] The Fashion Law, 10.10.2018, http://www.thefashionlaw.com/home/alfred-dunhill-handed-rare-legal-victo...

[4] Fashion United, Huw Huges, 10.10.201, UK brand Alfred Dunhill wins major trademark victory in China, https://fashionunited.uk/news/business/uk-brand-alfred-dunhill-wins-majo...

[5] Retail in Asia, Vinny Halo, Alfred Dunhill wins China trademark battle, http://retailinasia.com/in-markets/alfred-dunhill-wins-china-trademark-b...