Toy trademark infringement case, was awarded compensation of 850,000

Toy trademark infringement case, was awarded compensation of 850,000

Recently, the final judgment of a trademark infringement case involving pirated “Surprise Doll” toys concluded by the Guangdong Provincial Higher People’s Court was made public. The court determined that the logo used by the accused infringing product was the same as or similar to the plaintiff’s trademark involved, and the actions of the four defendants constituted trademark infringement, and determined A total compensation amount of 850,000 was obtained.

Toy trademark infringement case, awarded compensation of 850,000 yuan

In this case, the American MGA Entertainment Company (referred to as “MGA Company”) is the trademark owner of the “picture” and “LOL SURPRISE!” trademarks, and the trademarks have been approved for use on “toy figurines” and other products. Plaintiff LOL SURPRISE! Toys such as the Surprise Doll and Pop-Up Ball have been loved by consumers since they entered China in 2018, and they have also attracted many counterfeit products.

Toy trademark infringement case, awarded compensation of 850,000 yuan

“Surprise Doll” series of toy products

In December 2019, MGA discovered that the toys exported by a Shantou import and export trading company infringed on its “picture” and “LOL. SURPRISE!” trademark rights. After this behavior was administratively punished by the customs, MGA found that the company, together with other related entities, continued to promote and sell products that infringed its trademark rights on the website. Therefore, MGA Company sued the company to Shantou Intermediate Court.

After investigation, the judge in charge of the case learned that MGA has registered the “Picture” and “LOL SURPRISE!” trademarks in my country in accordance with the law, and has opened an online flagship store on a well-known e-commerce platform. This has made it known to consumers and should be deemed to have a certain influence. . Therefore, improper behaviors that adhere to well-known logos should be stopped promptly and a fair and honest market order should be maintained.

In December 2021, the Shantou Intermediate People’s Court issued a verdict, ordering the four defendants including a Shantou import and export trading company involved in the case to immediately stop the infringement, and fully supported MGA’s claim against the import and export trading company. The four defendants were ordered to compensate the plaintiff a total of 850,000 yuan. This case was selected as the Shantou Court’s 2021 White Paper on Judicial Protection of Intellectual Property Rights because it serves as a model for local intellectual property trials of similar cases.

The Guangdong High Court, the court of second instance, found after trial that the logo used by the accused infringing product was identical or similar to the plaintiff’s trademark involved in the case, and the four defendants’ actions constituted trademark infringement, and determined a compensation amount of RMB 850,000. When the Guangdong High Court determined the amount of compensation, the court comprehensively considered punitive factors. To a certain extent, it achieved the effect of punishing and deterring malicious infringement similar to the application of punitive damages, which is highly typical and innovative.

The punitive factors considered by the court in this case include: the defendant’s subjective fault for repeated infringement, the severity of the infringement, the value of the infringing products investigated and dealt with by the customs, the large number and scale of the infringing products displayed on the defendant’s website, and the plaintiff’s trademark involved in the case has a relatively high Notability, etc. These factors are expected to provide corresponding guidance for similar cases. The final judgment in this case is now effective.

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