Sichuan's First: "Qing Hualang" Well-known Trademark Infringement Case Decided

WISECODE Take

This "Qing Hualang" well-known trademark infringement case reveals a common misunderstanding among many business owners: even possessing a registered trademark does not guarantee complete protection. From a military strategy perspective, trademarks are like a company's "banner" and "territory" in the market. A well-known trademark is akin to a national strategic fortress, with influence and protection far beyond ordinary positions. The Sichuan High People's Court, in its (2024) Chuan Zhi Min Zhong No. 342 judgment, applied the "same category well-known recognition and prohibition of use" rule, much like a command center's forceful removal of an enemy's "counterfeit flag." Even if "Qing Hualiang" was registered, once deemed confusingly similar to the well-known "Qing Hualang" banner, its use was immediately prohibited. For business owners and startups, this ruling serves as a serious warning. Attempts to "free-ride" or "piggyback" on established brands can lead to severe consequences, such as the 600,000 RMB in economic compensation in this case. This is not just a financial loss but a significant blow to brand reputation and market foundation. Conversely, brands with well-known trademarks like "Qing Hualang" gain strategic depth and a solid moat beyond the scope of ordinary registration, effectively deterring enemy incursions. First, before launching new brands or products, companies must conduct thorough trademark similarity searches and risk assessments, consulting professional advice to avoid infringing on well-known trademark protection zones. Second, after a brand is established, a regular market monitoring mechanism should be put in place. If any potential "counterfeit flags" appear, prompt and decisive legal action must be taken, much like a swift counterattack in defensive warfare, to prevent the opponent from growing stronger. A well-known trademark is a brand's most solid moat; its protective power should not be underestimated, as it is an indispensable intangible asset for enterprises. Zhidian provides trademark monitoring services to help companies detect potential threats early and safeguard their brand assets.