New Balance loses its battle over trademark

According to the evidence, Xinbailun Co made profits of 195.8 million yuan during the infringement period from July 2011, when the plaintiff registered the trademark "Xinbailun", till the court began proceedings.

The court considered the defendant did not use the trademark directly on its products but only for introducing and promoting its shoes, so it decided the compensation should be half of the profits, namely, 98 million yuan.

The plaintiff also sued Guangzhou Sanse Merchant Chain Co, a dealer and partner of Xinbailun Co. The court asked Sanse to stop infringement of the plaintiff's trademark rights of "Bailun" and "Xinbailun" and pay 5,000 yuan in compensation.

Xinbailun Co has decided to appeal, according to an insider who asked to be anonymous.

Xu Xuan, a law professor at Jinan University in Guangzhou, told Guangzhou Daily there was "reversed confusion" about the trademark in the lawsuit. This means the plaintiff's trademark is less famous than the defendant's and consumers could think goods or services provided by the plaintiff were made by the defendant.

He said if the Trademark Law does not stop this practice, well-known companies may unscrupulously use others' trademarks and that would result in unfair competition.