The Prosecution Administration requests for legal opinions about whether "Lung Sheng Frozen Food Co., Ltd." is a well-know corporate name to the related public

Chinese Taipei


Case:

The Prosecution Administration requests for legal opinions about whether "Lung Sheng Frozen Food Co., Ltd." is a well-know corporate name to the related public

Key Words:

well known, the related public, corporate name

Reference:

The Fair Trade Commission Decision of November 5, 1997 (the 314th Commission Meeting)

Industry:

Frozen Food Manufacturing Industry (1132)

Relevant Laws:

Article 20 of the Fair Trade Law

Summary:

  1. A corporate name represents the business subject, which provides products or services. Therefore, whether a corporate name is well known to the related public means whether or not the business subject is famous. This shall be determined by the performance of its products in the market, i.e., the corporation's sales volume or its market share.

  2. Lung Sheng Frozen Food Co., Ltd. (Lung Sheng) produces and sells Tou Chu (a kind of frozen fish starch made of pounded fish meat) to wholesalers who, rather than the general retailers or consumers should be the "related public" in this case. In accordance with common business practices, Lung Sheng does not need to promote itself by advertising in the retail or general consumer market. As a result, the volume and expenditure in advertising made by Lung Sheng shall not be the focus of evaluation in this case, but rather the market share of its particular product shall be the main evaluation criterion for judging whether Lung Sheng is well known to the related public.

  3. According to the Industry Information System of the Fair Trade Commission, the total sales value of Lung Sheng's frozen fish starch products in 1996 was NT$45,360,000, ranking the fourth in the market of frozen fish starch in terms of the total sale value, which shows that it has required powerful market position. Moreover, its clients includes as many as 23 wholesalers located throughout Chinese Taipei from Keelung, Taipei, Ilan, Taichung, Tainan to Kaohsiung, Fengshan and Pingtung. Therefore, it should be concluded to the extent that Lung Sheng is well known to the related public in the market of frozen fish starch products.

 

Summarized by Li, Wen-hsiu
Supervised by Wu, Tin-hung


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