The Plaintiff (Chanel) filed a complaint with the IP Court, alleging that the use by defendant (POYA) of CHANEL's trademarks "香奈兒" and "CHANEL" and photos of CHANEL's products had infringed upon its trademark rights, disturbed the trade order and caused dilution to CHANEL's reputation and hence, constituted violation of Trademark Act and Fair Trade Act. However, the IP Court, in a ruling in May 2016, indicated that the Defendant already conspicuously displaced its own trademarks "寶雅" and "POYA" in its promotional materials and merely used "香奈兒" and "CHANEL" trademarks for indicating that the luck draw gifts were genuine "CHANEL" products, and not for identifying its own goods and services. The IP Court held that the defendant’s use of the plaintiff’s trademarks constituted fair use under Article 36-I- of Trademark Act and not prohibited by plaintiff's trademark rights. The court held further that the defendant's use did not take free ride of plaintiff’s trademarks or goodwill and was not prohibited by Fair Trade Act, either.