Case brief:

Fendi Co Ltd is the trademark owner of the registered trademark of "FENDI". In China, Fendi authorized affiliated companies set up stores in Beijing, Shanghai, Guangzhou, Chengdu and in other cities to sell "FENDI" products, with the "FENDI" logo on their store signage.

In July 2015, Shanghai Yilang International Trade Co Ltd and Shouchuang Outlet (Kunshan) Business Development Co Ltd signed a shop lease contract. In August of the same year, Yilang declared the entry of "FENDI" products from France to Chinese customs and in September it began to operate a "FENDI" store at the Shouchuang outlet.

The two defendants used Fendi's logo in various places and occasions, such as shop signs, window billboards, brochures and floor signs in the outlet. Fendi believed that any unauthorized use of the "FENDI" logo by Yilang and Shouchuang constituted infringement of Fendi's exclusive right to use its registered trademark and was unfair competition.

The Shanghai Pudong New Area People's Court held that the actions of the two defendants did not constitute trademark infringement or unfair competition and in the first instance rejected all the claims of the plaintiff Fendi. 

The Shanghai Intellectual Property Court in the second instance held that Yilang's unauthorized use of the "FENDI" logo on the store sign constituted trademark infringement and unfair competition and Shouchuang aided the infringement. In the second instance, Yilang was sentenced to immediately stop the trademark infringement and unfair competition, with the two defendants directed to compensate Fendi for economic losses of 350,000 yuan ($52,068).

In March 2021, the Shanghai High People's Court held that Yilang used of the same trademark "FENDI" in similar services with Fendi, which was easy to cause confusion and was not a fair use of the trademark and constituted trademark infringement. As a result, the retrial judgment upheld the second trial judgment.

Significance:

The significance of the case is to further indicate how genuine resellers should standardize the use of trademarks and names related to the goods sold. The case showed that even genuine resellers of a relevant brand should not use trademarks that are easily confused with the registered trademark, enterprise name or brand name in their shop and on various business occasions. Otherwise, it will constitute a corresponding trademark infringement and unfair competition.