KDF Distribution (Shanghai) Co., Ltd. v. Aquatherm Pipe System (Shanghai) Co., Ltd. and Shanghai Ousu Trading Co., Ltd. Against Trademark Infringement and Unfair Competition

 

-whether using other’s trademark due to change of distributor constitutes trademark infringement and false publicity

 

[Rule of Law]

The case involves the ascertainment of proper use of trademark and false publicity behaviors under special circumstances. The Appellant KDF Distribution (Shanghai) Co., Ltd., as a sales agent, registered the trademark “洁水”, but only uses it to promote the products of an outsider AQUATHERM GMBH. Whether the behaviors that the two Appellees use the trademark “洁水” in their publicity based on the change of brand agency relationship constitute trademark infringement and false publicity? The judgment, from the point of view of the subjective intent and mode of the two Appellees using the trademark and the likelihood of confusion, holds that their behaviors of using the trademark are proper. With respect to the ascertainment of false publicity, it emphasizes that the ascertainment of whether the advertising language constitutes false publicity shall not stay away from the specific context for pure literal interpretation, but shall combine such factors as whole publicity contents, general attention of the public and existing cognitive experience. The document is clear in logic and well reasoned, and the rules established by it may have certain reference value for the trial of similar cases.

 

 

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