Shanghai Bacchus Wine Limited (“Bacchus”), an affiliated company of RIO, is the owner of the "锐澳" (Chinese Pinyin is “Ruiao”) and "RIO" Trade Marks. Bacchus filed an unfair competition lawsuit with the Jining Intermediate People’s Court in Shangdong Province, after Bacchus noticed that Zhongshan Keizheng Wine Limited changed its name into Guangdong Ruiao Investment Limited (“Guangdong Ruiao”). Bacchus believed such conduct to be an attempt in misappropriating Bacchus’s goodwill.


No. 4140501 "Ruiao" Trade Mark

In first instance, the court held that Bacchus is the owner of the registered Trade Mark "Ruiao", and that Guangdong Ruiao's actions infringed Bacchus's exclusive right to use the registered Trade Mark and constituted unfair competition. The court ordered Guangdong Ruiao to change its name within twenty days after the judgement came into effect, and must not include the word "Ruiao" in its name change. The court further ordered Guangdong Ruiao to compensate Bacchus for their economic losses and reasonable expenses which totalled in CNY$3.6 million. Guangdong Ruiao appealed against the first instance judgment. The Shandong Higher People’s Court held in the second instance that the appeal request could not be established and finally dismissed it.