Recently, the State Administration for Industry and Commerce ("SAIC") announced to launch nationwide enforcement campaign to crack down free-riding of famous brands and strengthen fair competition environment (hereafter as “the Campaign”) in the second quarter of 2013 (from April 1 to June 30, 2013).
According to SAIC, “free-riding of famous brands” refers to unfair competition acts which cause confusion in the market by using others’ market reputation in order to obtain more opportunities. Such acts are distinctive use of trade name to the extent that others’ registered trademark is counterfeited or infringed; It also include the simplified use of corporate name which is false advertising or indication to mislead consumers as to manufacturer and producer. In addition, the act further means the partial use of other’s trade name which already gained certain market reputation and public popularity to mislead the public as to the source of the product.
The Campaign will target at the goods such as household electronic and electrical appliance, articles of daily use, foods, building renovation materials and agriculture-related products which are frequently complained by consumers.