Luxury fashion house Burberry has emerged victorious in a trademark infringement and unfair competition case against Xinboli Trading Shanghai, the company behind the counterfeit brand “Baneburry.” The Jiangsu Provincial High People’s Court ruled in Burberry’s favor, delivering a significant win for the brand and setting a positive precedent for intellectual property (IP) protection in China.
Xinboli had been marketing and selling products that deliberately mimicked Burberry’s trademarks, including the iconic check pattern, the word mark “BURBERRY,” and the equestrian logo. Ximboli sold its products using similar packaging with identical fonts and hang tags to Burberry’s. These infringing products were sold on major platforms like Tmall and WeChat, as well as through a network of pop-up shops.
Burberry took legal action in 2020, arguing that Xinboli’s activities were misleading consumers and damaging its brand reputation. The court agreed, finding that Xinboli’s use of identical fonts, hang tags, and packaging constituted a clear case of trademark infringement.
Landmark Decision Strengthens IP Protection
The court’s decision went beyond simply halting Xinboli’s infringement. It also declared Xinboli’s own trademark registrations for “Baneburry” to be invalid. This is a significant development because in China, oppositions to trademarks are limited to a five-year window. However, the court ruled that Xinboli had acted in bad faith by filing these trademarks to capitalize on Burberry’s established reputation in the Chinese market to generate more profits.
Burberry presented a substantial amount of evidence, reportedly exceeding 5,000 pages, to demonstrate the brand’s well-known status in China at the time of Xinboli’s applications. This, coupled with the blatant nature of Xinboli’s copying, convinced the Chinese court that the trademarks were obtained through fraudulent means.
A Hopeful Sign for Fashion Brands
This decision serves as a beacon of hope for fashion brands operating in China, a market fraught with IP challenges. The case highlights the importance of proactively registering trademarks in China and taking decisive action against counterfeiters. It also demonstrates a growing willingness by Chinese courts to protect the valuable intellectual property of international brands that have established strong presences in the Chinese market. This can pave the way for a more robust environment for IP protection in China, benefiting both international brands and domestic consumers.