Recently, Shanghai No.1 Intermediate People's Court made a first instance decision in favor of Victoria's Secret Stores Brand Management, Inc.(hereinafter referred to as “VS Inc.”) against Shanghai Maisi Investment Management co., Ltd.(hereinafter as “Shanghai Maisi”).
VS Inc. registered marks “VICTIORIA’S SECRET” and “维多利亚的秘密” covering goods and services in China. However Shanghai Maisi used “Victoria's Secret” on Maisi's store signboard and fashion show and claimed itself as VS Inc.'s Headquarter in China.
Before court, VS Inc. claimed that the acts by Shanghai Maisi constituted trademark infringement and unfair competition and requested that Shanghai Maisi should cease infringement and make a compensation of 5,100,000RMB as well as a public statement to remove the caused negative influence upon VS Inc. Shanghai Maisi defended itself for non- infringement and fair competition.
After examination, the Court held that, though there were not enough evidence that Shanghai Maisi were selling counterfeit goods of Victoria’s Secret, it’s clear that Shanghai Maisi used the trademark of “Victoria's Secret” on its store signboard and fashion show and claimed itself as VS Inc.'s Headquarter in China on the websites. These acts constituted trademark infringement of Victoria’s Secret. The Court also held that Maisi's false advertising gained itself unfair competitive advantages and would cause negative market influence to VS Inc.
Since there was not enough evidence for the economic loss of VS Inc, the Court made a decision ordering Shanghai Maisi to make a compensation of 500,000 RMB. The Court also ruled that Shanghai Maisi should cease infringement and unfair competition and publish a statement to remove the negative influence.
