SHANGHAI – A Chinese appeal court has ruled against US sportswear firm New Balance for trademark infringements and ordered it to pay 5 million yuan (S$1.02 million) in compensation to a Chinese company, an amount far lower than previously ruled.
The court in Guangdong upheld an earlier ruling against the US sports shoe maker’s use of a Chinese language trademark, the official Xinhua news agency reported late on Thursday, but reduced the damages from a previously ruled 98 million yuan.
China has seen a recent spate of disputes over trademarks and intellectual property, with iPhone maker Apple, entertainment firm Walt Disney and carmaker Jaguar Land Rover all being drawn into court cases.
New Balance spokeswoman Amy Dow said the firm was “disappointed” by the ruling and was considering taking the appeal process further.
“This ruling is particularly concerning as it is contrary to the rest of the developed world’s understanding of Intellectual Property,” Dow said in emailed comments on Friday, adding the ruling could set a “poor precedent”.
New BailunLP vs New Balance. (Photo: Internet)
According to the South China Morning Post (SCMP), Mr Zhou Lelun had acquired the “Bailun” trademark in 2004, and then applied to register “Xin Bailun” (New Bailun) that same year. He gained approval in 2008.
New Balance authorised a new affiliated company, “Xinbailun” to use its English trademarks in China in 2007 and later used “Xinbailun” as its Chinese names on its online stores in China.
Mr Zhou took New Balance to court in 2013.
The Chinese court has dismissed the US company’s argument, saying that “Xinbailun” was neither the translation nor transliteration of “New Balance”.
See also:
- China says Disney to get special trademark protection
- Michael Jordan loses China trademark suit: Report
- Apple settles iPad trademark case with $76m
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