Cheng Yang Pharmaceutical Company Limited [hereinafter referred to as "Cheng Yang"] violated the Fair Trade Law for its sales of "Lin Ch'iang Oxygenic Drink"

Chinese Taipei

Case:

Cheng Yang Pharmaceutical Company Limited [hereinafter referred to as "Cheng Yang"] violated the Fair Trade Law for its sales of "Lin Ch'iang Oxygenic Drink"

Key Words:

free riding, association with another's name, deceptive or obviously unfair acts that will adversely affect the order of trade

Reference:

Fair Trade Commission Decision of 24 May 1994 (the 133rd and 135th Commission Meetings); Disposition (83) Kung Ch'u Tzu No. 046

Industry:

Food and Beverage Production (2010)

Relevant Laws:

Article 24 of the Fair Trade Law

Summary:

1. Protection under the Fair Trade Law for the stage names of famous entertainers is similar to the protection for indications of services. Such protection does not necessarily extend to preventing all other uses of the name by other industries. However, if an enterprise takes active measures to imply that its product is strongly recommended by a specific entertainer and thereby takes a "free-ride" on the name and reputation of the entertainer, it will be considered as violating Article 24 of the Fair Trade Law which provides: In addition to what has been provided in this Law, an enterprise shall not conduct any other deceptive or obviously unfair acts that are sufficient to affect trading order.

2. Lin Chih-feng ["Mr. Lin"] has been in the entertainment industry under the stage name of "Lin Ch'iang". His first album, "Move Forward", won the Golden Songs Award's Best Song of the Year Prize and was the annual champion of songs contest hosted by a popular TV show titled "Bulletin Board of Hit Songs" in Chinese Taipei. Mr. Lin thereafter appeared as an actor in movies like "The Life of a Puppeteer", and "I'll Live One Day Only for You". Other evidence of Mr. Lin's fame is the statement in the administrative decision issued by the National Bureau of Standards [trademark office] (Chung Tai Yi Tzu No. 821062 Opposition Decision) of 16 October 1993 stating that Mr. Lin "may be regarded a nation-wide well-known entertainer". The sanctioned party cited the title of Mr.' Lin's first album "Move Forward" in advertising its product "Lin Ch'iang Oxygenic Drink". This was done in a way that leads viewers and consumers to associate the product "Lin Ch'iang" with the entertainer "Lin Ch'iang". Therefore, the aforementioned advertisement was clearly intended to associate the product with the famous entertainer, Mr. Lin Chih-feng. The aforesaid active acts conducted by the sanctioned party misled the general consumers to believe that its "Lin Ch'iang Oxygenic Drink" was associated with or recommended by the famous entertainer. These intentional acts of free-riding are in violation of provisions of Article 24 of the Fair Trade Law.

Summarized by Lin, Ch'iu-miao
Supervised by Hsiu, Chiao-yiang

Appendix:
Cheng Yang Pharmaceutical Company Limited's Uniform Invoice No. 43765928

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