Supreme People's Court overturns decision recognised as model IP case
The Supreme People’s Court of China has overturned a decision that it had previously recognised as one of 50 model IP cases of 2015.
This article was recently published in WTR Daily, part of World Trademark Review, who have agreed with Simmons & Simmons to it being made available on their website.
A recent decision of the Supreme People’s Court of China (SPC) in relation to trademark infringement and original equipment manufacturer (OEM), Jiangsu Chang Jia Jin Feng Power Machinery Co Ltd v Shanghai Diesel Engine Co Ltd (2016) Zui Gao Fa Min Zai No 339), is especially noteworthy, as the SPC overturned a decision that it had previously recognised as one of 50 model IP cases of 2015.
The Dong Feng decision confirms that that so long as OEM goods are for export only and the overseas principal is the legitimate owner of the trademark in the destination jurisdiction, it is unlikely that the OEM manufacturer will be found liable for trademark infringement through its OEM activities. The case also further elaborates on the duty of necessary examination and care on the part of the OEM manufacturer, which appears to shift the burden of proof to the complainant, to show that either the OEM manufacturer had not performed its duty of necessary examination and care when accepting an OEM contract, or that its OEM activities had caused substantial damage to a domestic trademark right.
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