Moutai sues multiple companies, urgent crackdown on counterfeit liquor

Compiled from: Southern Metropolis Daily
 
Case review
On February 6, Qichacha showed that the case in which China Kweichow Moutai Distillery (Group) Co., Ltd. (hereinafter referred to as “Kweichow Moutai”) sued Guizhou Province Renhuai City Maotai Town Sifang Liquor Industry Co., Ltd., Guizhou Guodeng Liquor Industry Co., Ltd., and Shanghai Xunmeng Information Technology Co., Ltd. will be heard on February 20 at the Shanghai Xuhui District People's Court, with the cause of action being a dispute over trademark infringement.

 
 

The parties in this case are not facing off for the first time. According to a judgment published on China Judgments Online on June 11, 2019, several merchants sold "Moutai VIP Liquor," "Feitian Reception Liquor," and "Moutai Internal Supply Liquor" on an e-commerce platform, with packaging similar to that of "Kweichow Moutai." Some products bore the words "Kweichow Moutai" on their liquor boxes and packaging bags. Ultimately, the court of first instance ruled that the merchants must cease their infringement of multiple Kweichow Moutai trademarks, and the e-commerce platform must cease providing platform sales services for them.

 
 

 
The [1] The People's Republic of China Trademark Law
Article 57
Any of the following acts constitutes an infringement of the exclusive right to use a registered trademark:
(1) Using a trademark identical to a registered trademark on the same goods without the permission of the trademark registrant;
(2) Using a trademark that is similar to a registered trademark on the same goods, or using a trademark that is identical or similar to a registered trademark on similar goods, without the permission of the trademark registrant, where such use is likely to cause confusion;
(3) Selling goods that infringe upon the exclusive right to use a registered trademark;
(4) Counterfeiting or manufacturing without authorization the labels of another person's registered trademark, or selling such counterfeited or unauthorized labels;
(5) Replacing another person's registered trademark with a different trademark without the consent of the trademark registrant and putting the goods with the replaced trademark back into the market;
(6) Intentionally providing convenient conditions for acts that infringe upon another person's exclusive right to use a trademark, or assisting others in committing such infringement;
(7) Causing other damage to another person's exclusive right to use a registered trademark.

 
 

 
[1] The author's perspective
It is reported that in a previous lawsuit, Kweichow Moutai repeatedly mentioned that the company spends over 200 million yuan annually on anti-counterfeiting and anti-fraud efforts. The reason Moutai invests so much manpower and financial resources in trademark rights is that counterfeit and shoddy products severely damage Moutai’s own brand image. As a renowned liquor brand in China, Moutai possesses irreplaceable manufacturing techniques and brand value. For consumers, the choice of a liquor brand not only reflects the drinker’s taste preferences but also signifies the prestige of a banquet.

However, some counterfeit liquors mimic Moutai's appearance but sell for only ten or twenty yuan. Although rational consumers know these are fake products, there are always unsuspecting buyers who fall for them. Fake liquor not only harms consumers' health due to substandard quality but also damages the company's brand image and disrupts normal market order. Any form of infringement is not tolerated by the law. With the growth of e-commerce platforms, these counterfeit products are everywhere, so consumers should stay vigilant when purchasing. If the price of a product is far from the genuine price, they must choose carefully and not be deceived by small gains.