Supreme Court hands down landmark ruling on OEM infringement
November 23, 2012 | BY
clpstaffA Supreme People's Court ruling has brought welcome clarity over whether OEM constitutes trademark use in China. However, it remains to be seen if the Court's finding will be applied to infringement cases
Original equipment manufacturing (OEM) is a commonly used structure, where foreign consignors provide trademark samples and ask businesses in China to make products labelled with the trademark. All the goods are returned to foreign countries for sale.
Over the past decade, the question of whether OEM constitutes trademark use has been met with differing opinions by the courts and administrative authorities. In the past, the administrative authorities have held the opinion that OEM is not trademark use.
In contrast, the Courts have handed down differing interpretations. For example, in the 2010 case Nokia Corporation vs Wuxi Jinyue Technology, a Shanghai court confirmed that OEM products bearing the mark Nokia, with the small suffix Egypt, destined exclusively for Egypt, did constitute infringement.
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now