In April, 2014, Xinchang-based Siemives Household Electric Co., Ltd (hereinafter referred to as Xinchang Siemives) was founded in Jiangxi Province. The shareholder Mr. Wu who controlled 80% of the shares, applied for the registration of SIEMIVES trademark in 2013 and registered the domain name "siemives.com" in January, 2014. The permissions of the trademark and domain name were given to Xinchang Siemives by Mr. Wu. There is also a Shaoxing-based Bangdai Electric Co., Ltd (hereinafter referred to as Shaoxing Bangdai) involved in the case selling "SIEMIVES" range hood that Xinchang Siemives produced.
In August 2015, it is reported that consumers in Taiyuan City, Shanxi Province mistook the range hood products produced by Xinchang Siemives Company as "Siemens" brand products produced by Germany-based Siemens. Afterwards, German Siemens Company took a lawsuit against Mr. Wu, Xinchang Siemives and Shaoxing Bangdai to Shaoxing Intermediate People's Court on the grounds of trade mark infringement and unfair competition, claiming economic losses and reasonable expenses totaling 2 million yuan.
The court of first-instance tried the case and ordered that Xinchang Siemives and Shaoxing Bangdai stop the involved trade mark infringement and unfair competition behavior, and jointly pay 100,000 yuan to German Siemens to compensate for its economic losses and reasonable expenses incurred herein. As Siemens disagreed with the court judgement freeing Mr. Wu from being a joint infringer and the meager compensation amount, it appealed to Zhejiang Higher People's Court afterwards.
In December 2016, the court of secondinstance awarded that Xinchang Siemives and Shaoxing Bangdai stop the involved trademark infringement and unfair competition behavior; Xinchang Siemives should alter its company name and publish statement in the media to clear the negative effect; Mr. Wu should stop and cancel the involved website domain; Xinchang Siemives, Shaoxing Bangdai and Mr. Wu jointly pay 1 million yuan to German Siemens to compensate for its economic losses incurred herein. Meanwhile, German Siemens paid public notarial fee and travel expenses, thus the court also ordered that the above three defendants pay 70,000 yuan to German Siemens to compensate for its reasonable expenses.