In 2013, Li Chenxi, a resident of Changchun, opened a small supermarket on Hongqi Street in Chaoyang District, selling daily necessities. Little did he know that a simple transaction would soon land him in legal trouble. On August 15, 2013, a customer purchased two iron padlocks from his store. Days later, Li was taken to court—unbeknownst to him, the buyer was an attorney acting on behalf of Yantai Sanhuan Lock Industry Group Co., Ltd.
The locks sold by Li had logos that were very similar to the registered trademark of Yantai Sanhuan Lock Industry Group, which holds the exclusive rights to the "Sanhuan" brand. The company is the rightful owner of the trademark, which is currently valid and has been properly renewed with the State Trademark Office. This similarity raised concerns about potential trademark infringement.
Yantai Sanhuan Lock Industry Group filed a lawsuit, demanding that Li Chenxi cease the infringement and compensate them for economic losses and reasonable legal expenses totaling 15,000 RMB. The company argued that the unauthorized use of its trademark led to consumer confusion and damaged their brand reputation.
During the trial, the judge examined the notarized and sealed items in court. A detailed comparison revealed that the trademarks on the two locks were nearly identical to the registered ones. Further analysis of the materials and packaging showed that the infringing goods were not produced by Yantai Sanhuan Lock Industry Group, but rather by an unknown third party.
Ultimately, the Changchun Intermediate People's Court ruled in favor of Yantai Sanhuan Lock Industry Group. Li Chenxi was ordered to immediately stop selling the infringing products and pay 6,000 RMB in compensation within 10 days of the judgment becoming effective. This case highlights the importance of trademark protection and the serious consequences of unintentional or deliberate infringement. It also serves as a reminder to small business owners to be cautious when sourcing products and to ensure they are not inadvertently violating intellectual property laws.
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