Louis Vuitton Malletier and Taiwan Lu Wei filed a complaint against Yang Shih Chung for counterfeiting LOUIS VUITTON and other three trademarks in violation of the Fair Trade Law
Chinese Taipei
Case:
Louis Vuitton Malletier and Taiwan Lu Wei filed a complaint against Yang Shih Chung for counterfeiting LOUIS VUITTON and other three trademarks in violation of the Fair Trade Law
Key words:
counterfeiting, trademark, leather goods
Reference:
Fair Trade Commission Decision of 7 January 1998 (the 323rd Commission Meeting); Disposition (87) Kung Ch'u Tzu No. 016
Industry:
Other Leather/Fur Goods Production Industry (1509)
Relevant Laws:
Article 20 of the Fair Trade Law
Summary:
Styles of leather wallets, purses and bags are limited and their colors and patterns centered on the small number of popular ones. Accordingly, when the consumer makes a leather goods purchase, the brand name is a major consideration in addition to other factors such as price, style, pattern and purpose of use.
Louis Vuitton Malletier (LVM) set up its first leather store in 1854. The suitcases, purses, wallets and the collection of other fashion goods that LVM produces and sells under LOUIS VUITTON and other trademarks have been marketed through its worldwide distribution network. As of 1994, the number of exclusive outlets for LVM's products exceeded 166. LVM established its affiliate in Chinese Taipei in 1983 in the name of Taiwan Lu Wei (TLW). The first company store was established the same year in Taipei. As of 1997, four exclusive outlets for LVM's products have been established islandwide. LVM have been filing applications to register its trademarks. LVM has obtained over 600 trademark registrations for its trademarks from over seventy countries including France, the US and Chinese Taipei. LVM's first Chinese Taipei exclusive right on trademark was granted in 1979. In nearly two decades, LVM has obtained over fifty trademark registrations in Chinese Taipei. For the period from 1990 through 1994, LVM's global sales reached nearly NT$125 billion. For the period from 1990 through 1996, value of the sale of LVM's products in Chinese Taipei was nearly NT$2.8 billion. For the last five years, LVM has spent over NT$34 million for local advertising. For many years now, articles about LVM's products have appeared in the local media and in major magazines and books. In practice, there have been numerous instances where counterfeiters of LVM's products were punished in court judgments, or the applicants of similar trademarks found their trademark application or registration opposed, invalidated or canceled. In view of the length of time in the market, sales volume, advertising volume, the relevant public's impression from the wide-ranging media reporting, and the opinion of the court and National Bureau of Standards (the trademark office), it is considered that LVM's trademarks are symbols well known to the relevant public.
Yang operated an underground factory at 29 Fen Tzu Wei Street in Sanch'ung City from December 1995 to 11 April 1997, where counterfeits of LVM's products were made. On 11 April 1997, Yang's factory was raided. The Taichung County Investigation Station (under the Department of Justice's Bureau of Investigation) seized the counterfeited products. The case was submitted to the Taichung District Prosecutor's Office for investigation. An indictment was brought against Yang, and the prosecutor in charge of the case filed a motion for summary judgment. A comparison between the counterfeits and LVM's products as depicted in the photos presented by the complainants found the counterfeits (made by Yang) were very similar to LVM's products in terms of the trademark, shape, pattern and color. These similarities would easily confuse a consumer to mistake the counterfeits as coming from the same source as LVM's products, and are considered a violation of Article 20(1)(i) of the Fair Trade Law.
Summarized by Li, Shu-hua
Supervised by Pai, Yu-chuang