The Shenzhen Intermediate People’s Court recently issued a judgment on a trademark infringement and unfair competition case involving Audemars Piguet, a renowned Swiss luxury watchmaker. The dispute arose when a Shenzhen-based company, discovered in 2019, was found to have used a logo similar to Audemars Piguet’s “ROYAL OAK” series and sold watches on various online platforms.
Audemars Piguet, known for its iconic octagonal-shaped bezel design featured in the “ROYAL OAK” series since 1972, sought legal action against the Shenzhen company. The lawsuit, presented to the Shenzhen Intermediate People’s Court, asserted that the defendant’s use of a comparable logo on the watch case and the replication of the distinctive design constituted trademark infringement and unfair competition.
The court, in its judgment issued in September 2021 (pending finalization), supported Audemars Piguet’s claims. The decision concluded that the defendant’s actions indeed constituted trademark infringement and unfair competition. As a result, the court ordered the defendant to cease the infringement and pay 1 million yuan in damages to Audemars Piguet, covering economic losses and reasonable rights maintenance costs.
Key to the dispute was the question of whether the defendant’s use of the Audemars Piguet watch design could be considered unfair competition. The defendant argued that the octagonal shape was a common geometric figure and an essential aspect of the watch’s technical functionality. However, Audemars Piguet contended that their watch design held a unique status as a commodity decoration with significant influence, as evidenced by the popularity, uniqueness, and recognition by the public.
The court ultimately sided with Audemars Piguet, determining that the watch design constituted a commodity decoration with a certain influence under the Anti-Unfair Competition Law. This ruling is particularly significant for Audemars Piguet, as it reinforces the protection of their “ROYAL OAK” watch design in the Chinese market.
This case highlights the challenges luxury brands face in protecting their designs and trademarks, especially in markets like China. The outcome underscores the importance of legal recourse in safeguarding intellectual property rights and sets a precedent for similar disputes in the future.
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