"Pay 2.3 Billion Won in Damages," Has China Changed? Intellectual Property Rights Gain Importance

The Chinese premium sanitary pad brand "Ifuni," packaged in light blue boxes.

[Customer: It's a sanitary pad gifted by a friend. I've used it before and it's fine.]

The company has been hit with a trademark infringement lawsuit by the famous jewelry brand Tiffany & Co.

The lawsuit was filed on the grounds that the name "Ifuni" is similar to the trademark "Tiffany."

The trademark infringement lawsuit brought by Tiffany & Co. is being tried at the Beijing Higher People's Court.

While the outcome cannot be predicted, assessments suggest that China's atmosphere has recently shifted toward placing greater importance on intellectual property rights.

In June, a milk tea brand was ordered to pay about 2.3 billion won in damages to Louis Vuitton after using a "four-leaf clover" shape on its cups and other items.

Foreign-related intellectual property cases filed in China last year totaled some 11,000, up 34.1% from the previous year.

The court emphasized that it will continue to maintain the order of trademark registration in accordance with the law.

[Wang Jun / Managing Partner, Taoan Law Firm: In the past, China focused on OEM, but now China's own creations have increased. The value of original intellectual property rights has also risen, leading to strengthened protection for patents, trademarks, and copyrights.]

As Chinese courts increasingly show a clear tendency to strictly apply the "first-to-file" principle—whereby the person who applies first monopolizes trademark rights—Korean companies also need to proactively register their trademarks.

[Park Jae-young / Partner Attorney, DLG (Jincheng Tongda & Neal): More Korean companies are trying to register their trademarks, but have they done it as thoroughly as Louis Vuitton? Not many companies have done so. If trademark registration and other measures are in place, reliable judicial procedures are underway.]

Active securing of rights and resolute responses are the ways to protect the value of our brands in the Chinese market.

(Reported by Choi Deok-hyun | Video by Kim Jong-mi | Graphics by Kim Ye-ji)

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