Hitching a ride on "Baidu," this "Baidu BBQ" lost miserably!
[4] Compiled from: Red Star News
Case review
[2] Jingbaidu Catering Company was registered and established in 2012, with its business scope including catering management and catering services. Its first, third, seventh, and eighth branches were registered and established in 2012, 2013, 2014, and 2015 respectively. These five companies extensively used identifiers such as "Baidu," "Baidu BBQ," and "Baidu Sugar" in their store names, decorations, advertising, WeChat public accounts, and Meituan app.
[3] Baidu Inc. subsequently filed a lawsuit against these five companies at the Beijing Intellectual Property Court. Baidu requested the court to grant "well-known trademark" protection to the "Baidu" trademark for "providing internet search engine services," and to order the five companies to immediately cease infringing on the exclusive rights of the "Baidu" trademark and stop their unfair competition practices.
[4] In the complaint, Baidu also sought compensation of 4.95 million yuan for economic losses and 50,000 yuan for reasonable expenses incurred in rights protection, and requested that the five companies publish a statement in the China Intellectual Property News to eliminate the impact of the infringement.
[5] The Beijing Intellectual Property Court found that, at the time of the establishment of the five companies and the alleged infringing acts, the trademark used by Baidu for "providing internet search engine services via computer information networks" had become a well-known trademark familiar to the relevant public in China.
[1] Court Opinion
[6] Based on evidence such as financial books and tax returns provided by the five companies, the court determined that their average annual operating profit during the infringement period was over 300,000 yuan, and the infringement lasted more than five years. Considering factors such as the distinctiveness and reputation of Baidu's trademark, the nature of the infringement, the profits gained, and the damage caused to Baidu, the court set the contribution rate of Baidu's trademark to the infringing profits at 35% and applied a threefold punitive damages multiplier, ordering the five companies to pay Baidu over 2.3 million yuan in economic losses and reasonable expenses.
[1] Trademark Law
[2] Paragraph 2 of Article 13
[3] Where a trademark applied for registration on goods that are not identical or similar is a reproduction, imitation, or translation of another person's well-known trademark already registered in China, and is likely to mislead the public and cause damage to the interests of the registrant of the well-known trademark, it shall not be registered and its use shall be prohibited.
[4] Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Civil Disputes Involving the Protection of Well-Known Trademarks
[5] Paragraph 2 of Article 9
[6] Where it is sufficient to cause the relevant public to believe that the accused trademark has a considerable degree of association with the well-known trademark, thereby weakening the distinctiveness of the well-known trademark, damaging its market reputation, or improperly exploiting its market reputation, this falls within the scope of "misleading the public and potentially damaging the interests of the registrant of the well-known trademark" as stipulated in Paragraph 2 of Article 13 of the Trademark Law.
[1] The author's perspective
In this internet age, businesses that ride on the popularity of well-known brands seem to be a primary means of livelihood for some. The five companies sued used "Jing Baidu," which is similar to "Baidu," as their corporate name, subjectively intending to attach themselves to Baidu's "Baidu" trademark reputation and free-ride on it. Objectively, this also easily leads the public to mistakenly believe there is a relationship between the five companies and Baidu, causing confusion about the investment or business entities of the five companies and resulting in confusion over the source of services. Therefore, this judgment can effectively protect Baidu's intellectual property rights and economic interests.
In fact, Baidu has also sued another company, "Baidu BBQ," for trademark infringement, ultimately gaining support from the Supreme People's Court and receiving compensation of 3.5 million yuan. Additionally, Baidu has sued "Baidu Bar" for trademark infringement, receiving 800,000 yuan in compensation, and sued "Baidu Car Rental," claiming 600,000 yuan. Currently, there are still companies like "Baidu Beverage" and "Baidu Learning Network" that ride on the name. This shows that well-known companies like Baidu have long been troubled by brand parasitism and free-riding. Faced with such difficulties, companies should, on one hand, do a good job in registration, covering as many categories and types of trademarks as possible; on the other hand, once disputes arise, they should actively use legal weapons to protect their legitimate rights and interests!
