Case Background
Our firm represented a century-old European luxury brand (Plaintiff) in a cross-border trademark infringement dispute against a Yiwu, China-based enterprise (Defendant). In 2012, the Defendant exported children’s clothing and wallets to the UAE and the Philippines bearing the Plaintiff’s registered trademarks without authorization. After the infringing goods were seized and penalized by Yiwu Customs (a subdivision of Hangzhou Customs), the Plaintiff initiated civil litigation for damages.
Case Challenges
- Evading Defendant: Defendant refused to appear in court and submitted no defense.
- Damages Quantification Difficulty: All infringing goods were confiscated, making actual profits impossible to calculate.
- Integrating Multinational Evidence: Required coordination between Customs administrative penalties and civil litigation evidence systems.
- Brand Premium Valuation: Assessing the market value of a century-old luxury trademark.
Our Service Highlights
1.Building an Evidentiary Closed Loop:
- Used the Customs Penalty Decision (Yi Guan Zhi Zi [2012] XXX) to conclusively establish infringement.
- Conducted in-court comparison of seized goods photos with registered trademarks (GG logo used on children’s clothing/wallets).
- Obtained historical brand development archives and documents proving its inclusion in the “National Key Protected Trademarks” list.
2.Mastering Procedural Rules:
- Cited Article 63 of the Trademark Law: Confiscation of infringing goods does not preclude civil damages claims.
- Applied Article 50 of the Law on the Application of Law in Foreign-related Civil Relations: Mandatory jurisdiction under Chinese law.
3.Optimizing Litigation Strategy:
- Abandoned claim for public apology (lack of evidence showing reputational harm).
- Focused claim solely on maximum statutory damages of CNY 200,000.
Case Results
1. Comprehensive Injunction Against Infringement
* Ordered to immediately cease sales of infringing products.
* Judicial effect extends to export destinations like the UAE and the Philippines.
2. Significant Damages Awarded
* Full claim for CNY 200,000 in damages supported (including attorney fees).
* Overcame the limitation of the Defendant’s nominal registered capital (CNY 30,000).
3. Procedural Costs Shifted
* 60% of the litigation costs (CNY 14,400) borne by the Defendant.
4. Innovative Judicial Principles
* Established the “inherent evidentiary validity” of Customs Penalty Decisions in civil trademark infringement lawsuits.
* Created a standard for calculating civil damages for “exported infringing goods”.
