In recent years, as China has intensified its intellectual property (IP) protection efforts, an increasing number of international brands have turned to litigation to safeguard their rights. The Michael Kors trademark infringement and unfair competition case serves as a prime example. This case not only highlights the firm stance of Chinese courts on IP protection, but also provides valuable guidance for brand owners seeking to defend their rights.
Case background
Partner
Chang Tsi & Partners
Tel: +86 10 8836 9999
E-mail: michaelfu@changtsi.com
Guangzhou Yuantai Leather Products, along with two other associated companies, engaged in large-scale production and sales of bag products that closely resembled those of the Michael Kors brand by registering similar trademarks and imitating packaging designs. These infringing companies sold their products both on e-commerce platforms and in physical stores, using misleading promotional phrases such as “Little MK” to attract consumers.
Such actions led to significant consumer confusion, resulting in the purchase of counterfeit products. These activities severely damaged the brand owner’s reputation and market interests, disrupted market order and infringed on consumers’ legitimate rights.
The legal team representing the brand owner, led by lawyer Michael Fu from Chang Tsi & Partners, filed a civil lawsuit with the Haidian District People’s Court in Beijing. The lawsuit demanded that the three defendants immediately cease their infringing activities and compensate the plaintiff for economic losses and reasonable expenses totalling RMB5 million (USD688,000).
Key judgment points
The court upheld the plaintiff’s claims, with the following key rulings.
On trademark infringement. The court determined that the infringing companies’ use of the “MAITANE KALOS” logo and graphic mark was similar to the Michael Kors trademark. Both were used on identical product categories (bags), which could easily mislead consumers. This ruling reflects the strict standards applied by Chinese courts in assessing trademark similarity, particularly in protecting well-known brands. The court prioritised the consumer perspective to prevent confusion and misidentification.
On unfair competition. The court found that the infringing companies’ use of terms such as “Little MK” in their promotions constituted trademark use and therefore amounted to trademark infringement. Additionally, the product packaging and design closely resembled those of Michael Kors, creating a high likelihood of confusion and constituting unfair competition. This judgment demonstrates that Chinese courts not only focus on trademark infringement but also provide robust protection for commercial identifiers such as product packaging and design.
On high compensation claims. Taking into account the reputation of the Michael Kors trademark and packaging, the infringers’ wilful misconduct, the scale of infringement, and their refusal to provide sales data, the court imposed the maximum compensation of RMB5 million. This substantial award not only serves as a strict penalty for infringement, but also provides strong legal support for brand owners.
Significance of the case
Demonstrating China’s stringent stance on IP protection. The ruling in the Michael Kors case reaffirms the “zero tolerance” approach adopted by Chinese courts towards IP infringement. Particularly in cases involving internationally renowned brands, the courts have employed measures such as substantial compensation and strict application of the law to safeguard a fair and competitive market environment. This underscores the strength and determination of China’s intellectual property protection efforts.
Providing valuable guidance for brand rights protection. The success of this case offers significant reference points for brand owners seeking to protect their rights. When handling similar cases, the following strategies are typically recommended:
- Comprehensive evidence collection. Gather evidence such as sales data of infringing products, promotional materials and consumer feedback;
- Multi-dimensional claims. Pursue not only trademark infringement but also claims under unfair competition; and
- Reasonable compensation calculation. Base claims on factors such as the scale of infringement and brand reputation to seek substantial compensation.
Boosting confidence in brand investment in China. This fair and impartial judgment further strengthens the confidence of international brands investing in China. As a professional in the intellectual property field, the author recognises the continuous improvement of China’s IP protection environment and takes pride in providing expert services to clients in this domain.
Personal practice, industry insights
Throughout a distinguished career, the author has led a team in handling numerous high-profile intellectual property cases, including the Under Armour v Fujian Ting Fei Long trademark infringement and unfair competition case, the Oreo criminal and civil case, and the Tiffany well-known trademark recognition case. Many of these cases have been recognised as annual landmark cases by courts at various levels. The author’s team, comprising more than 20 specialised lawyers and assistants, focuses on intellectual property and dispute resolution, delivering efficient and precise legal services to clients.
In the realm of brand rights protection, the author believes that engaging professional legal counsel promptly is a prerequisite for successful enforcement. For instance, in the Michael Kors case, the company’s swift legal action, facilitated by a professional legal team, ultimately secured a favourable outcome.
With the increasing emphasis on IP protection in China, the author advises brand owners to prioritise comprehensive IP strategies in the country, including trademark registration, patent protection and commercial design safeguarding. Proactive planning is essential to enable swift action against infringement and to maximise the protection of brand rights.
The victory in the Michael Kors case not only represents a decisive blow against infringement, but also serves as a strong affirmation of China’s IP protection environment. As a practitioner in the IP field, the author acknowledges the significant responsibility involved and remains committed to providing expert legal services to support brand development in China.
Looking ahead, as China’s IP protection framework continues to improve, more brands are expected to safeguard their rights through legal channels, contributing to a fair and competitive market environment.
Michael Fu is a partner at Chang Tsi & Partners. He can be contacted by phone at +86 10 8836 9999 and by email at michaelfu@changtsi.com
