The Fashion Law Blog reports
New Balance has prevailed in a trademark case that is part of a larger and long-running legal battle that has pitted it against New Barlun, a Chinese sportswear company that has been trading on its name and various trademarks for more than 15 years. In a decision dated January 5, the Shanghai Huangpu District Court ordered New Barlun Co. Ltd and Shanghai Shiyi Trade Co. Ltd to pay damages of RMB 25 million ($3.85 million) to New Balance, in one of the largest judgments awarded to a trademark holder in the sportswear market in China to date.
The Shanghai Huangpu District Court held that New Barlun and Shiyi’s practice of manufacturing and distributing sneakers bearing a capital “N” symbol that is noticeably similar to the “N” that appears on the side of New Balance’s trainers constitutes trademark infringement, with the court noting that the similarity between the two parties’ marks is similar in both a “visual and conceptual” capacity.
Siding with New Balance, the court found that New Barlun’s lookalike sneakers generated substantial revenues for the company, which is viewed as one of the “most prolific and aggressive copycat brands” in the Chinese sportswear space, and that such success was largely attributable to the fame and reputation of the New Balance brand and its “N” trademark in China. The court also revealed that the defendants had acted in bad faith when they continued to operate even after the court had issued an interim injunction order barring them from manufacturing and selling the infringing footwear for the duration of the case.
In addition to coming down on New Barlun and Shiyi, the court held that distributor Shanghai Lusha is also held jointly liable for the infringement, and on the hook for RMB 100,000 ($15,000) as a result of its role in the infringement scheme.
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New Balance Lands $3.85 Million Win in Chinese Trademark Case Against Copycat New Barlun
