In recent years, the popular TV, movies and variety show from South Korea spread rapidly through Asia and we called it Korean Wave. Some people found business opportunity from the wave, and they began to sell South Korea clothes through various means. The infringement goods, however, can be found in the mix.

As the JAMY Global and Accommate Company Limited distributed the clothes products which suspected of infringing the trademark right of orangeflower on their website, Henli International Garments (HK) LTD recently sued the above two companies and Guangzhou Handou Trade Company for trademark infringement and unfair competition, and sought 10.08 million yuan in damages.

According to the information provided by Accommate, after the above online platform specialized in distributing South Korea clothes was  established by Accommate, the JAMY was initiated later. From then on, the platform was partly operated by JAMY. After the clothes sellers joined the platform, the consumers could buy the products showcased on that platform. Accommate charges South Korea companies a premium for services. Through many years’operation, there were maximum 80 clothes sellers joined the site, with consumers spanning China and Japan.

Since 2011, more and more clothes with the trademark of orangeflower appeared on the site, which causing the Henli Company some concern. Besides, the above two companies still conduct online promotion, investment attraction and distribution via orangeflower. They also developed agents nationwide. Henli is the trademark owner of orangeflower. So Henli held that the two companies’action has bought damages to the interests of Henli, and such behavior has constituted trademark infringement and unfair competition.

For such strong charge, the two companies alleges that the products showcased on the online platform was produced and distributed by South Korea’s WITH TJ and Orangeflower Company. JAMY is just a company providing network services, and did not engage in production and distribution of any infringing products, so the trademark infringement was not constituted. 

Tianhe Court held that the three companies infringed trademark right of Henli, and unfair competition was also constituted. The court ordered the two companies to pay 9.98 million yuan to Henli according to Chinese trademark law.

After the first- instance decision was made, Guangzhou Handou Company did not lodge an appeal，and the sentence has been carried out. The  disgruntled JAMY and Accommate then launched an appeal to the Guangzhou IP Court. The court, through the trail, maintained the decision made by Tianhe Court and rejected the appeal of the two companies.

(by Jiang Xu/Xiao Shengcheng)

(Source: CHINA REPORT INTELLECTUAL PROPERTY)