Unitalen Represented Plaintiff in Trademark Infringement on “Bai Yuan Trousers” and Won the Case

December 27, 2005

Founded in 1998, Bai Yuan Trousers in Shanxi (hereinafter the “BYT”) is a large franchising chains enterprise mainly selling trousers. From the founding day, BYT has developed 850 franchising stores in China with a turnover of RMB 4 billion. To date, BYT owns a number of trademark registrations for the mark “百園”(Chinese characters), “百圓”(Chinese characters)和“百圓城(Chinese characters)＋device” in Class 25 in respect of “clothing, trousers” and in class 35 in respect of “promotion (for others), business management for franchise stores”. Through continuous use of the marks for long time, the marks“百園” and“百圓”have become well-known among consumers.

Banyuancheng Company (hereinafter “BC”) was established on 30 September 2001. Zhang Xiaomin, the deputy general manager of BC, was once a franchisee of BYT’s franchising stores. Zhang Xiaomin developed the main business of BC on manufacturing and selling trousers even though he knew clearly about the business scope of BYT.

In order to protect the lawful interests of BYT and its franchising stores and fight against unlawful actions, BYT entrusted Unitalen Attonerys at Law(the “Unitalen”) to sue BC for its trademark infringements and unfair competition before the Beijing Chaoyang District People’s Court in 2005.

After several investigations and three hearings, the Beijing Chaoyang District People’s Court recognized that the trademark registration No.1370910 “百園+device” is a famous trademark in Shanxi province and enjoys a good reputation among relevant consumers. The court held that the prominent use of the trade name “百圓城” has infringed BYT’s exclusive right of the trademark No.1370910 “百園+device” and the registration and use of trade name “百圓城” constituted unfair competition. The court ordered an immediate cease of trademark infringement and use of trade names containing the words “百圓”. The court also ordered the defendant to pay the plaintiff for damage.