Case Introduction

The focal issue in the case lies in Article 49.2 of the Trademark Law, specifically whether the trademark "Guiyu" (No. 1414829) was publicly, genuinely, and lawfully used in commerce on "alcoholic beverages" during the period from November 11, 2018, to November 10, 2021.

During the review stage, the trademark owner Pengyan Company submitted a licensing contract, product images, purchase and sales contracts, and relevant invoices to the CNIPA. After trial, the CNIPA recognized the use-related evidence and decided to uphold the registration of the trademark.

Our client, dissatisfied with the decision, filed a lawsuit with the Beijing Intellectual Property Court. After trial, the first instance court held that the evidence submitted by Pengyan Company had multiple flaws, and the invoice amount was relatively small. The purchasers were natural persons, and one of the invoices involved a transaction between affiliated companies. Additionally, several aspects of the evidence did not conform to normal business practices. Therefore, the first instance court concluded that the evidence could not form a complete evidence chain and could not prove the use of the disputed trademark within the three-year period.

Pengyan Company, dissatisfied with the first instance judgment, appealed to the Beijing High People's Court for the second-instance proceeding

Result of Ruling

After trial, the Beijing High People's Court reached the same conclusion as that of the first instance court: it did not recognize the evidence submitted by the trademark owner Pengyan Company, and thus the sued decision of the CNIPA was revoked.

Reasons of Ruling

The trademark owner, Pengyan Company, failed to submit the original copies of the evidence, and thus the court did not recognize the authenticity of the evidence. Given that Pengyan Company had submitted false evidence, the court correspondingly raised its burden of proof. Moreover, the quantity of other evidence submitted by Pengyan Company was relatively small, and the evidence, when considered collectively, had obvious flaws. Consequently, the court determined that Pengyan Company's use of the disputed trademark constituted token use only, rather than the use in the sense of the Trademark Law.

Typical Significance

The principle of "good faith" serves as a fundamental clause in the Trademark Law, with its legislative spirit permeating through various clauses of the Trademark Law. In cases concerning the revocation of trademarks for non-use over three years, trademark owners bear the obligation to present evidence of use in good faith during the evidentiary process. Otherwise, the owner will face adverse legal consequences.