In the final judgment of Shanghai Higher People's Court, Victoria's Secret, a well-known lingerie brand, finally won the trademark dispute and an anti-unfair competition case against Shanghai Maisi investment Management Company. Maisi was ordered to pay 500,000 yuan in compensation for economic loss to VS and was sentenced to publish apology on newspaper to cease trademark infringement and unfair competition.
In this case, Maisi used the Victoria's Secret trademark in their retail stores and proclaimed that their Meiluocheng branch was VS' direct-sale store in Shanghai market, VS' China headquarters，sole distributor in Beijing, Shanghai, Shenzhen and Tianjin markets, VS' brand operator in Chinese market. The Court held that Maisi's promotions could cause confusion among the public that it had been licensed by VS, it has gone out the scope of expressing commodity source, and trademark infringement was constituted. The Court also held that by using the VS' trademark in the promotions and in their services, Maisi intended to expand their alliance businesses, which has violated VS' trademark.
Meanwhile, the Court held that Maisi's propaganda has misled the public that VS had officially authorized Maisi to use their trademark, and it would cause potential damage to VS' business in Chinese market. So, unfair competition was constituted. So the Court made the decision above.