Recently, Beijing IP Court made the judgment on the trademark infringement case between Meichao Group LLC. (referred to as Meichao)and Beijing Xiujie New Building Materials Ltd.(referred to us Xiujie) The court ruled that the Beijing Xiujie shall stop trademark infringement and compensate a total amount of RMB 10,000,000 yuan(around USD1,450,000) to Meichao.

 Meichao alleged that it owns exclusive trademark right of “墙锢” on goods “Adhesives for industrial purposes; Glue for industrial purposes, etc.” and this mark has obtained high market reputation in China.  Without its authorization, the defendant prominently used “秀洁墙锢”、“易康墙锢”、“兴潮墙锢”字样 on similar goods it produced and sold, which has constituted trademark infringement.

 Xiujie argued that “墙锢”is a generic term of conventionally used for products involved, its use of these characters are not trademark use, so it requested the court to reject the claims of the plaintiff.

Through examination, the court held that: based on the evidences provided by the two parties, “墙锢”is not a generic name in the industry involved; the defendant’s use of the characters“墙锢”in bigger font and in prominent position on the product packaging drum, is a use of trademark, these actions infringed the trademark rights of the plaintiff.

 As to the amount of compensation, Meichao claimed to determine it according to the profit that the infringer has earned through the infringement and provided evidences about the profit. The Court ordered Xiujie to provide materials about its actual business condition, but Xiujie refused to provide. So according to the facts found out and the obstruction of evidence, the Court supported the whole amount of Meichao and ruled that Xiujie shall pay an amount of RMB 100,000,000 to Meichao, which is the highest amount in the trademark civil infringement till now.

Article 63, Paragraph 2

  Where the right holder has fulfilled his obligation to supply evidence in order to enable the people’s court to determine the amount of compensation, while the account books and any other materials connected with the infringing act are mostly in the control of the infringer, the people’s court may order the infringer to provide such account books and materials. Where the infringer refuses to provide such information or provides false information, the people’s court may determine the amount of compensation at its discretion by taking into account the claims and the evidence submitted by the infringed.

Source:http://rmfyb.chinacourt.org/paper/html/2016-11/22/content_118762.htm?div=-1