Goods in the form of the famous logo with the double C of Chanel were sold by the Chinese jeweler. The IP court had to decide in this trademark dispute whether the infringement of a shape of goods in China is a trademark infringement – and ruled against Chanel.
In an investigation initiated in 2016, Chinese officials found goods in a Ye Meng-Zong jewelry store in the form of Chanel’s double “C” logo. Chanel saw this as an unlawful counterfeiting of products and brought an action before the Guangzhou Haizhu District People’s Court (Haizhu Court) for trademark infringement. The court upheld the claim and awarded Chanel damages from Ye in the judgment.
Dissatisfied with the court’s decision, Ye Meng-Zong appealed the decision to the Guangzhou Intellectual Property Court, one of three courts that China has recently created exclusively for intellectual property (IP) judgments.
The IP Court therefore dealt with the question of whether the shape of Yes’s products can be regarded as infringing. Was the double C form used and perceived decoratively or were the pieces of jewellery perceived by the double C as a Chanel brand?
Ultimately, the IP court in Guangzhou had to identify the shape of goods that violate the rights of a registered trademark. The current legal framework through IP judgements in China does not yet provide a clear answer.