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An Unfair Competition Dispute

China IP News       
Henan High People's Court heard an unfair competition dispute concerning the Umbrella logo. The contesting parties from China and the United States decided to settle eventually after the trial.


Arnold Palmer Enterprises is the owner of the trademarks Arnold Palmer, the Umbrella logo and the words 花雨伞 (meaning umbrella) in China. In December 2005, the U.S. company granted an exclusive license Anqi Garment Factory in Zhongshan, Guangdong to use the three trademarks and authorize others to use in China.


On March 17, 2008, Arnold Palmer Enterprises entrusted Zhejiang Guoao Textile Company to manufacture thermal underwear with the trademark Lourfoxs. The parties agreed to print on the underwear "Under the Supervision of Arnold Palmer Enterprises".


In August 2008, Anqi alleged trademark infringement and unfair competition at Zhengzhou Intermediate People's Court, seeking injunction of Guoao and its representative Gong. Zhengzhou Court held Guoao does not use its Lourfoxs trademark properly and infringes the Umbrella trademark, and ordered it to indemnify 80,000 yuan in damages. Guoao then appealed to the Henan High Court.