On December 6th, the Weibo topic # Company responds to NIO logo collision and is sentenced to pay 300000 yuan # went viral. Recently, a judgment circulating online stating that a well-known car company logo has become a ventilation hole for a barbecue grill has attracted attention.
The judgment shows that Shanghai NIO Automobile Co., Ltd. (referred to as "NIO", 9866. HK) has filed a lawsuit against Zhejiang Beishanlang Outdoor Products Co., Ltd. (referred to as "Beishanlang Outdoor"), alleging that the ventilation holes on the barbecue grills it produces and sells are designed to "hit the face" with the former logo, which damages the plaintiff's legitimate rights to the well-known trademark. On November 22, the Nanjing Intermediate People's Court, which tried the case, determined in the first instance that Beishan Wolf Outdoor had committed infringement and ordered it to stop infringing, compensate NIO for economic losses and reasonable expenses totaling 300000 yuan.
According to Jiupai News, on December 4th, the relevant person in charge of NIO's legal department stated that NIO has its own outdoor camping products, and some consumers have mistakenly believed that the other party is selling NIO products. If there are quality problems, it will have a huge negative impact on the brand image.
The litigation representative of Beishan Wolf Outdoor stated that they are still in communication with the defendant regarding whether to appeal, and a decision has not yet been made. He stated that the first instance judgment has not yet taken effect and cannot comment on the aforementioned verdict.
▲ Ventilation hole design on barbecue grill "hits face" NIO logo
NIO sues, first instance verdict for compensation of 300000 yuan
The aforementioned judgment shows that in April 2023, the defendant Beishanlang Outdoor listed portable barbecue grills with similar registered trademarks to the plaintiff NIO on multiple e-commerce platforms, with prices ranging from 121 yuan to 137 yuan. Due to the high similarity between the ventilation holes of the oven and the NIO logo, it has been misunderstood by many buyers and netizens, with comments such as "I thought NIO had it", "Is this a NIO barbecue grill", "I looked twice and realized it's not NIO, that logo is really similar", "How did NIO switch to making barbecue grills", etc. frequently appearing in the comment section.
NIO demands that Beishanlang Outdoor cease infringement, compensate for economic losses of 2 million yuan, pay 280000 yuan for rights protection costs, and publish statements in newspapers and some e-commerce platforms to eliminate the impact. Beishan Wolf Outdoor argues that the accused infringing mark is only the ventilation hole of the barbecue grill and does not have the function of identifying the source of the goods, and does not infringe on the plaintiff's trademark rights.
The Nanjing Intermediate People's Court determined in the first instance that NIO's registered trademark constitutes a well-known trademark on Class 12 electric vehicles. The accused infringing mark and the registered trademark involved have a similar shape, with only slight differences, constituting a similar trademark. The defendant Beishan Wolf's outdoor manufacturing and sales of goods that infringe upon the exclusive rights of the registered trademark in question constitute infringement, and should bear civil liabilities such as cessation of infringement and compensation for losses in accordance with the law. The defendant is ordered to compensate the plaintiff for economic losses and reasonable expenses totaling 300000 yuan.
Lawyer: The right to ban well-known trademarks can be expanded
According to Red Star News, Li Weihua, a partner at Dacheng Law Firm, "trademark use" is a strict legal concept, and the Trademark Law has a clear definition of it, requiring businesses not only to use logos on goods or packaging, but also to use them as marks to distinguish the source of goods or services.
He stated that the prerequisite for constituting trademark infringement is to constitute "trademark use" as stipulated in the Trademark Law. In other words, if a merchant uses a certain logo without using it as "identifying the source of the product" (indicating the manufacturer), it will not constitute trademark use. Without trademark use, there can be no issue of trademark infringement.
Wang Xinxia, Senior Partner of Beijing Zhongyong Law Firm, believes that the plaintiff and defendant have different categories of goods approved for use in their trademark rights, and generally do not constitute trademark infringement. However, due to the evidence provided by NIO to prove that its logo, as a registered trademark, has a high level of popularity and influence after long-term use, it has been recognized as a well-known trademark. According to the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Trademark Civil Dispute Cases, the right to prohibit well-known trademarks can be extended to different and dissimilar goods, and the legislative purpose of the well-known trademark system is to provide protection that matches the trademark's popularity.
As of today's close, NIO's Hong Kong stock closed down 1.23% at HKD 36.20 per share, with a latest market value of HKD 75.1 billion.
(Source: Jiupai News, Red Star News, Public Information)
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