要闻资讯

As a result of the judgment on February 1, 2023, Hermès International was awarded RMB 2 million (around USD 281,700) in damages. The decision was announced in November 2023.

Shandong Hu Gang Jian Ye Real Estate Development Co., Ltd. (Hu Gang Jian Ye Company), a Chinese company, used the name “Hermès Themed Apartments” for its residential buildings. It also prominently and extensively used the HERMÈS logo in various mediums, including on protective building nets, billboards, electronic screens, and promotional materials; and including on online platforms such as WeChat and online media reports.

The first instance court, the Shandong Province Tsingtao Intermediate People’s Court [(2021) Lu 02 Min Chu No. 1856] found that Hu Gang Jian Ye Company knowingly used the HERMÈS logos in commercial activities related to the construction, sales, exhibition, and advertising of the residential properties.

The logos used by Hu Gang Jian Ye Company were identical to Hermès International’s registered trademarks, which had achieved widespread recognition and well-known status in China;

The public was likely to associate these logos with Hermès International and its brand;

By using the infringing logos, Hu Gang Jian Ye Company misled the public into believing a connection or authorization from Hermès International, leading to confusion and dilution of the distinctiveness of the well-known HERMÈS trademarks.

It concluded that Hu Gang Jian Ye Company’s use of the logos infringed upon Hermès International’s trademark rights.

The court also noted that Hu Gang Jian Ye Company intentionally merged its Hermès Themed Apartments with the HERMÈS brand, creating a misleading association in consumers’ minds. The company also marketed the apartments as luxury goods, further strengthening the connection with Hermès International’s renowned luxury brand.

The court deemed these promotional activities misleading and constituting unfair competition, adding that whether the HERMÈS products displayed in the alleged infringer’s sales center and sample rooms were authentic or not did not change the finding that the consumers are likely to be misled into associating the Hermès Themed Apartments with Hermès International and its brand.

However, according to the first instance court’s observation, Hermès International became aware of the alleged infringement no later than November 26, 2019, but it failed to promptly notify or warn Hu Gang Jian Ye Company to cease the infringement. It was not until August 2021 that Hermès International directly filed a lawsuit, thus neglecting to exercise its legal rights. Consequently, Hermès International should also bear corresponding responsibility for the expanded portion of the losses incurred as a result of Hu Gang Jian Ye Company’s infringement.

Finally, the Shandong Higher Court dismissed Hu Gang Jian Ye Company’s appeal, and the first instance judgment was upheld.