British luxury brand Burberry has lost a trademark infringement case brought by Road Bi Damaqiu in China over its iconic tartan pattern and may face 500 million yuan ($82 million) in fines, according to a report by the Beijing Business Today on Wednesday.
Road Bi Damaqiu, a Chinese leather product company in Foshan, Guangdong province, held a press conference last Thursday to announce the revocation ruling issued by the Trademark Office of the State Administration for Industry and Commerce.
Damaqiu's production design has been integrated with a check pattern similar to Burberry's.
The check pattern has long been seen as the iconic logo for the sought-after British luxury brand, but it has long been used as a design element, rather than a trademark.
The Foshan-based company found that Burberry had not used the pattern for three years, and filed a suit to the Trademark Office in February last year to have the trademark revoked.
The company received confirmation of the revocation last Tuesday, and filed suit against Burberry, demanding 500 million yuan, the total losses that the company suffered from Burberry's trademark-related lawsuits.
Burberry said on Monday that the check pattern, along with "Burberry" and "Burberry Equestrian Knight", are all registered trademarks of the British brand.
To protect the company's intellectual property rights, Burberry will appeal the Trademark Office's ruling, it said.