Recently, the well-known lingerie brand, Victoria's Secret, has finally won the trademark infringement dispute and anti-unfair competition case against Shanghai Maisi investment Management Company. According to the final judgment of Shanghai High People's Court, Maisi was ordered to pay 500,000 yuan in compensation for economic loss of the plaintiff and to apologize on newspaper to eliminate effects it had brought to the plaintiff's brand.
The court held that the use of Victoria's Secret trademark in Maisi's retail stores, proclaiming that their Meiluocheng branch, a direct-sale store of Victoria's Secret in Shanghai, is the headquarter of Victoria's Secret in China,sole distributor in Beijing, Shanghai, Shenzhen and Tianjin markets and the brand operator of Victoria's Secret in Chinese market. Since Maisi's promotions could probably cause confusion among the public that it had been authorized by Victoria's Secret, it had infringed the later's trademark right.
What's more, the Court held that Maisi's act was unfair competition since Maisi's false propaganda, which could mislead the public to believe that Victoria's Secret had officially authorized Maisi to use their trademark, would potentially cause damage to the business of Victoria's Secret in Chinese market.