Wednesday, June 03, 2009

LOIYIR Must Stop Using L'Oréal's Chinese Name and Claiming It's Part of L'Oréal

Already in 2007 there was some confusion among consumers, see the question at Ask Koubei here:

Question: "LOIYIR 是 L'Oréal 的产品吗?" translation: LOIYIR is L'Oréal's product?
Answer: "不是."
Translation: no

The confusion was created by Hangzhou LOIYIR Cosmetics and Shanghai Meilianni Cosmetics that used the Chinese name of L'Oréal 欧莱雅 and claimed that LOIYIR's products are from L'Oréal.

Finally in 2009, the case was brought before the
Nantong (Jiangsu province) Intermediate People's Court (first-instance judgement). From 1981 to 2001, L'Oréal registered the trademarks L'Oréal, 莱雅 and 欧莱雅, certified to be used on Class 3 goods, i.e. cosmetics, beauty products and perfumes.

The Nantong Intermediate People's Court judged:

- the joint distribution of LOIYIR products by the co-defendants constituted trademark infringement, they have to indemnify L'Oréal by paying jointly 400,000 Renminbi in damages;
- Hangzhou LOIYIR used 欧莱雅 in its trade name, which constituted unfair competition; therefore they have to pay another 100,000 Renminbi in damages.

However, LOIYIR still uses 欧莱雅 in its trade name, see its website here. Maybe they will appeal the judgement.

See China Law Edu (Chinese).

1 comment:

Anonymous said...

Question: "LOIYIR 是 L'Oréal 的产品吗?" translation: LOIYIR is L'Oréal's product?
Answer: "不是." Translation: no


So under American law (not sure how TMs work in China) doesn't that mean that there would be no likelihood of confusion, and hence no trademark infringement? Though I imagine there'd be trademark dilution.