China Patent Agent (H.K.) Ltd. (CPA) recently won a trademark infringement case on behalf of a Sweden manufacturer against a domestic company in Shanghai, China.

The case relates to the trademark owner’s word and device marks used on designated goods including heat exchangers. The defendant of the case used to buy heat exchangers from the manufacturer, i.e. the plaintiff and sell them to others. However, at the end of 2010, the defendant was found by the plaintiff to be selling counterfeit heat exchangers, which were basically the same as the trademark owner’s goods in visual identification including trademark. The fact that the defendant was selling more than what it had bought from the manufacturer constituted an alleged case of trademark infringement and unfair competition.

The defendant argued against the alleged infringement and the state of “selling more than what it had bought from the manufacturer”, by pointing to the established business relationship with the plaintiff and claiming that the alleged goods were sourced from the plaintiff or its authorized entities.

The plaintiff filed a request to the court for investigation order. Upon the grant of the order, on-site investigation was made by the court, and crucial evidence obtained from third party. After several court hearings, the court established that the defendant’s acts constituted trademark infringement and unfair competition.

The defendant was ordered to stop the production and sale of the infringing goods, pay RMB100, 000 to the plaintiff as compensation for economic loss, and make announcement in the media to rectify the impact of infringement.