[Jian Xu] Adding one's trade name and logo on other branded products can constitute trade mark infringement in China

In the commercial supply chain, there are many layers of distribution for a branded product. Some distributors or resellers might put their own trade name and/or logo on top of the branded products they are selling, sometimes leading the consumer to think they are the producer or OEM manufacturer or licensed dealers. Such behaviour can constitute trade mark infringement in China, despite that those distributors or resellers might claim that they are putting on their own logo or registered trade name.

In a recent Chinese High Court case at provincial level, the plaintiff, an Italian company called UNIVERSAL S.P.A., has found Chinese companies doing exactly the same thing above. Universal SPA produces “CARIOCA” branded colour pencils (shown below) and is the registered trade mark owner in China.
Two Chinese companies which are resellers of those products, have put Chinese tags with their trade name and logo on the outer packaging of the products. Moreover, there are wordings on the tag indicating that they are the producers of those branded products. The court has found such behaviour infringing the trade mark rights of Universal SPA. The court reasoned that the value of the trade mark lies in its function to identify the source of the products. The fact that the Chinese companies putting their own trade name and logo on the branded products and indicating that they are the producers, has destroyed the value of the “CARIOCA” in identifying the source of products, rending the unique association of the “CARIOCA” mark with Universal SPA disrupted, and leading to market confusion. Therefore, both Chinese companies were found infringing.