Case 3
According to the complaint lodged by the Zhuhai Kangqi Corporation Ltd., Jiangping Branch of Suzhou Administration for Industry and Commerce carried out investigation on the illegal transaction of Suzhou Pharmaceutical Purchase and Supply Station passing off the peculiar product name of Naobaijin of Zhuhai Kangqi Corporation Ltd..
According to the investigation result, Suzhou Pharmaceutical Purchase and Supply Station purchased from Suzhou Pharmaceutical and Nutrient Import and Export Corporation 1200 bottles of imported melatonin with the product name of Naobaijin, and sold at higher price in its affiliated chain stores in April, 2000. Up to May 2000, Suzhou Pharmaceutical Purchase and Supply Station has sold 888 bottles of the product making a profit of 6653 RMB.
Naobaijin is a product name of nutrient being used by the Zhuhai Kangqi Corporation Ltd. in advance and approved by the Ministry of Health. It is a peculiar product name of nutrient with marked differences compared with the product names of other nutrients. Being broadly advertised by the Zhuhai Kangqi Corporation Ltd., Naobaijin has become a well-known product in market.
Jiangping Branch of Suzhou Administration for Industry and Commerce found that the transaction of Suzhou Pharmaceutical Purchase and Supply Station selling the product of Naobaijin of others violated Item 2 of Article 5 of the Law of the People's Republic of China for Countering Unfair Competition, and constituted unfair competition act of passing off other's peculiar product name. According to Item 2 of Article 21 of the Law for Countering Unfair Competition, Jiangping Branch of Suzhou Administration for Industry and Commerce made the following decision of administrative punishment towards the Suzhou Pharmaceutical Purchase and Supply Station: