Xiang Piao Piao Sued Suzhou Xiang Piao Piao and Henan Hao Duo Duo for Unfair Competition and Received a Compensation of 70,000 yuan

2021-04-28
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China IP Today

The first-instance civil verdict on the unfair competition dispute between the milk tea brand Xiangpiaopiao Company Xiangpiaopiao Food Co., Ltd., Henan Haoduoduo Food Co., Ltd., and Suzhou Xiangpiaopiao Enterprise Management Co., Ltd. was announced.

In this case, Xiang Piao Piao won the lawsuit, and the infringing company was awarded 70,000 yuan in compensation. According to the data from Tianyancha, the defendant Henan Haoduoduo Food Co., Ltd. once filed an appeal, but lost in the second instance, and the court upheld the original verdict.

According to the content of the judgment, Xiang Piao Piao Company discovered that the milk tea products entrusted by the defendant Suzhou Xiang Piao Piao Company and produced by many companies, whose packaging was clearly marked and highlighted the company name of Suzhou Xiang Piao Piao Company, violated the plaintiffs registered trademark rights. At the same time, The packaging and decoration of the defendants products were similar to the packaging and decoration of the originally notified product, which was enough to cause the relevant public to misunderstand and constitute an act of unfair competition.

The court held that the existing evidence was sufficient to prove that the plaintiff’s registered trademark involved in the case had a high reputation and was well known to the relevant public. The two companies were established in 2016 and 2017, respectively. The two defendants, as market entities established later, should avoid this when engaging in the business activities of cup milk tea products. However, the two defendants were accused of infringing milk tea. "Suzhou Xiang Piao Piao Enterprise Management Co., Ltd." is marked in a prominent position on the front of the product cup. Its behavior is easy to mislead the relevant public. It has obvious intention to cling to the goodwill carried by the plaintiff Xiang Piao Piao's registered trademark, which violates the principle of good faith, constitutes an act of unfair competition.

The court ruled that the defendants Henan Haoduoduo Food Co., Ltd. and Suzhou Xiang Piao Piao Enterprise Management Co., Ltd. immediately ceased the production and sales of the milk tea products involved in the case with the words "Suzhou Xiang Piao Piao Enterprise Management Co., Ltd." in a prominent position on the package as of the effective date of the judgment; Suzhou Xiang Piao Piao Enterprise Management Co., Ltd. will change its business name within ten days from the effective date of the judgment, and the changed business name shall not contain the word "Xiang Piao Piao"; the two defendants shall compensate the plaintiff Xiang Piao Piao within ten days from the effective date of the judgment. The economic losses and reasonable expenses of Piaopiao Food Co., Ltd. totaled 70,000 yuan.
 

Source: China IP Today