Chinese liquor brand Langjiu (郎酒) has won a significant trademark lawsuit against its rival Yelanggujiu (夜郎古酒), securing 196 million RMB in compensation, according to an announcement made by Yelanggujiu on Monday.

The Luzhou Intermediate People's Court of Sichuan Province ruled last Thursday that Yelanggujiu's use of the "Yelanggujiu" and "Yelangchunqiu (夜郎春秋)" marks on its liquor products infringed Langjiu's "Lang (郎)" trademark. The court also determined that Yelanggujiu's use of "Yelanggu (夜郎古)" as part of its corporate name constituted unfair competition. Yelanggujiu was ordered to cease production and sales of the infringing products, change its company name, and pay 196 million RMB in damages to Langjiu.

The court reasoned in its ruling that the "Yelanggujiu" mark would more likely be interpreted by the general public as a combination of "Yelang (夜郎)" and "gujiu (ancient liquor, 古酒)," rather than "Yelanggu" and "jiu (酒, liquor)." Therefore, Yelanggujiu's addition of the generic term "jiu" to its registered "Yelanggu" trademark altered its distinctive character, resulting in improper use of the trademark.

Regarding the unfair competition ruling, the court stated that since "Lang" is Langjiu's registered trademark and has been recognized as a well-known trademark by the Chinese Trademark Office, Yelanggujiu should avoid using the character in its company name despite owning the "Yelanggu" trademark.

Yelanggujiu expressed in its announcement that it disagrees with the court's decision and plans to appeal to the Sichuan High People's Court.

Langjiu, in response, expressed its respect for the court's decision and indicated it would maintain open communication with Yelanggujiu.

Langjiu, a leading Chinese liquor company, registered the "Lang" trademark in 1985, and it was recognized as a well-known trademark by the Chinese Trademark Office in 1997. The brand is associated with Erlang Town in Luzhou, Sichuan, where Langjiu is located.

Yelanggujiu, founded in 1999, derived its brand name from the historical Yelang culture. Yelang was an ancient tribal state established by ethnic minorities in southwestern China during the Warring States period through the early Han Dynasty. Since its inception, Yelanggujiu has used "Yelanggu" as its corporate name and successfully registered the "Yelanggu" trademark in 2005, which it has continuously used.

Langjiu had challenged the "Yelanggu" trademark before this dispute. In 2011, the Chinese Trademark Office ruled that the "Yelanggu" trademark did not constitute similarity to the "Lang" trademark, and Langjiu's claim of malicious registration lacked sufficient evidence. Langjiu did not pursue further review or administrative litigation. Over the years, Yelanggujiu has successfully registered numerous trademarks containing "Yelanggu."

For over two decades, Yelanggujiu and Langjiu have coexisted in the market. Yelanggujiu highlighted in its statement that both companies have engaged in technical exchanges and jointly participated in and won multiple industry awards, including the "Top Ten Chinese Sauce-Flavor Liquor Brand" from the China Liquor Circulation Association.

Based on these experiences, Yelanggujiu believes that the "Yelanggu" and "Lang" trademarks can be effectively distinguished and coexist in the market without misleading consumers or causing confusion among industry associations or the general public.

Yelanggujiu stated that it disagrees with the first-instance judgment and will file an appeal. It also emphasized that since the judgment has not yet taken effect and does not affect the validity of the company's registered "Yelanggu" trademark, the ruling does not impact its rights to continue the lawful and regulated use of the "Yelanggu" trademark on its liquor products.

Source(s):China IP