Beijing's Silk Market

IP Komodo’s friend Tim Smith of Rouse was curious to know what was happening at the famous Beijing Silk Market. He asked his intern Dominic to take a look and here is what they found. Large public notices appear around the market issued by the Beijing Administration for Industry and Commerce, concerning counterfeit goods. The notices (in Chinese only) state that any merchants in Silk Street caught selling any items bearing any of a finite list of famous foreign brands (Prada, Chanel, Burberry, Givenchy, Boss, Hermes, Miu Miu, North Face etc.) would be subject to administrative penalties, as all such articles would be counterfeit. Further, the management of the Silk Street shopping plaza would, if it was shown to have knowingly permitted the sale of any such goods, be subject to administrative measures and criminal punishment. These are all brands which we believe were involved in civil litigation against the Silk Market management.

There are also large red banners in Chinese and English reading "protect intellectual property rights - be law-abiding vendors" and "embrace national brand - respect intellectual property right". There were red sign boards displayed above the aisles every few metres or so in English advising customers that if they had any concerns with the merchandise they had purchased they could contact the customer service desk, call a telephone hotline or send the details of their complaint to a dedicated email address.

But a look around revealed many articles from jackets and shirts to belts and watches bearing brands such as D&G, Giorgio Armani, Adidas, Nike, Ralph Lauren and Abercrombie, all on unabashed display. Few of the brands listed in the notice, however, were seen. Coincidentally these all appear to be companies which were plaintiffs in civil court actions against the market in recent years. The result of the cases is that those brands who went to court appear to have succeeded in proving secondary liability against the landlord, so he ensures their products are not sold there. But those who have not litigated do not appear to be in that position. Further pending litigation is seeking to widen the landlord's liability further.

Guest post by IP Komodo Dragon

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Giorgio Armani Not Amused By Giormani of Hong Kong

IP Dragon was strolling in Sha Tin (沙田), minding his own business, until he came across a Giormani shop. Was Giorgio Armani saving costs by using less lettering on the billboards?

Italian designer Giorgio Armani, who built the vast Emporio Armani (empire Armani) of clothing and luxury products, will probably not be amused that Kelvin Ng and Jane Tong founded Giormani, a Hong Kong sofa furniture design and manufacturing company in 1999. It's website tells you that they work with young designers from Italy, Germany and Hong Kong. Therefore, we can exclude the possibility of Giorgio Armani designing for them, since he is only young at heart.

If Giorgio Armani registered its trademark in Hong Kong he could probably do something about the sofa business. And even when he did not register his trademark, since Hong Kong has a Common Law system, it means that he can enforce his unregistered trademarks with the legal figure of the tort of passing off.

However the plaintiff should proof the classic trinity:
The goods or services have acquired goodwill or reputation in the marketplace that distinguishes such goods or services from competitors;
The defendant misrepresents his goods or services, either intentionally or unintentionally, so that the public may have the impression that the offered goods or services are those of the claimant;
and The claimant may suffer damages because of the misrepresentation.

The Trademark Ordinance of Hong Kong states in the introduction: "No proceedings lie to prevent, or to recover damages for, the infringement of an unregistered trade mark butnothing in this Ordinance affects the law relating to passing off."

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