Beijing Mengkela Technology Co., Ltd (Mengkela) and Yihaodian, one of China’s largest online supermarkets run by Shanghai Yishiduo E-Commerce Co., Ltd (Yishiduo) were sued by CARTIER International (CARTIER) for infringing its registered trademarks. Shanghai Pudong District People’s Court rendered a judgment that the two defendants should cease infringement and pay damage of 130,978 yuan.

The Paris-based CARTIER has been the brand leader in luxury jewelry and watch manufacture since built in 1847. Yihaodian is the first Chinese online store run by an E-commerce website called Yishiduo. On May 27, 2011, Mengkela acquired the registration of “梦克拉”, certified to be used on Class 14, clock and watch.

CARTIER discovered in August 2011, the Yihaodian, without its authorization, used some descriptions like “Cartier classic crown diamond ring” on the product introduction of Mengkela jewelry on the website. CARTIER then required some notaries to preserve the evidence.

CARTIER maintained that Yishiduo and Mengkela highlighted “Cartier” and “卡地亚” on Yihaodian to harvest inequitable interests, which constituted the trademark infringement.

However, Yishiduo claimed that Mengkela was a shop run by independent vendor on the Yihaodian website and Yishiduo was just a web service provider which did not participate in any act of infringement. Mengkela also held that it did not infringe CARTIER’s trademark rights on the ground that the descriptions of “Cartier classic crown diamond ring” marked on the product introduction was not used as a trademark and Mengkela owned its registered trademark of “梦克拉”.

The court took the view that although Mengkela owned its trademark tagged on the product in order to identify its source, Mengkela advertised itself as“Cartier” and “卡地亚” on the product information in the process of the manufacturing and sales. Mengkela also took advantage of the CARTIER’s reputation on purpose to gain visibility. The logo function of CARTIER may significantly decrease. Such acts ran counter to the principles of good faith and led to infringement of the CARTIER’s trademark.

So ordered.

　　(China IP News)