The famous jewelry company from Austria specialized incrystal products, Swarovski, won a first instance decision about trademark infringement and unfair competition in Shanghai against Shanghai SwalroWedding Dress Company.
Swaroski, which registered SWAROVSKI and 施华洛世奇 trademarks inChina in 1980’s, claimed that Swalro, a company established in 2004 for themanufacturing of dresses, used 施华洛, 施華洛, and SWALRO labels not only for its wedding dresses but also for itspromotional material.
The Court held that this action has substantively damagedthe exclusive use of Swarovski of the trademark 施华洛世奇 and it has condemned the use of the Swarovski name bySwalro in advertising material like “Swarlo wedding dress, together withSwarovski crystal, to lead a luxury fashion in wedding dress »
In China, Swarovski gained a prestigious image and a verygood reputation among the consumers and both its trademarks SWAROVSKI and 施华洛世奇 have beenidentified as well-known trademarks in 2009.
According to the Shanghai No.2 Intermediate People'sCourt, Swarlo must have been aware of Swarovski's visibility and tookspecific advantage of the influence of the famous company for its ownbusiness activities or commercial advertising.
Therefore, the court assumed that the existence of Swarlocan have a negative effect on Swarovski's market, which constitutes not only aninfrigement to Swarovski trademarks but also unfair competition
The court ordered Shanghai Swarlo to cease the trademarksinfringement, make a compensation of 280,000 RMB in damages and eliminate allnegative effects.