Uncle Tetsu’s agent wins compensation
Print Edition
THE local agent of a popular Japanese bakery won a 1 million yuan (US$163,270) compensation for trademark violation from a local investment management company and its Ningbo branch.
Uncle Tetsu, a Japanese cheesecake bakery chain, registered in China in January 2013 and opened 200-plus stores nationwide. It appointed Shanghai Xiangsi Food Co Ltd as its local agent with the task of attracting other bakery owners to promote or join their brand.
In its lawsuit at the Pudong New Area People’s court, Xiangsi said a local investment management company Ai Pang Zi Food and its Ningbo branch used Uncle Tetsu’s trademark, its design and even the cake’s packing. Just one character was different on its Chinese name.
The “knockoff” stores affected the real outlets, Xiangsi claimed and demanded 1 million yuan as compensation. It also wanted Ai Pang Zi to stop using the trademark, false advertising and unfair competition.
Xiangsi claimed Ai Pang Zi had over 30 franchise outlets, and charged them a minimum of 100,000 yuan and made a profit of 3 million yuan.
It also demanded that Ai Pang Zi issue clarifications in three newspapers in Shanghai, Ningbo and Hangzhou.
However, Ai Pang Zi told the court it had only six outlets and did not make any profits because all the outlet bosses were either relatives or friends of Ai Pang Zi’s owner.
It also claimed it had been using the trademark since 2011 — two years before Uncle Tetsu registered in China. But it didn’t registered the trademark in 2011, which Ai Pang Zi blamed on lack of knowledge about intellectual property.
Eventually, the court backed Xiangsi as the two trademarks were almost identical and Ai Pang Zi did not have enough evidence in its support.
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