Geneva Laboratories (Bio-Oil brand), has been awarded RMB 1 million in compensation by the Guangzhou IP Court, following a cross party appeal from the Guangzhou Baiyun District People's Court, which had found in favour of Bio-Oil who claimed that the defendants had infringed their well known skin repairing product. The award on appeal was double the original sum of RMB 500,000 granted by the District Court and reflects the strong reputation that Bio-Oil enjoys in China, as well as serving as a deterrent to other, potential infringers.

The favourable decision follows three years of litigation against the defendants, Guangzhou Xianlingbaoya (GX) and Hubei Taier, with the original civil action having been issued in November 2020, on the basis that GX was marketing and selling products, such as soothing cleanser and sensitive repair cream, that infringed Bio-Oil's well-known skin product, as well as filing trademarks which infringed the Bio-Oil brand. Hubei Taier was the manufacturer of the infringing products. The District Court issued its First Instance judgment 12 months later, ordering GX to immediately stop the infringing activities and destroy the infringing products in stock and made a compensation order in the sum of RMB 500,000, with Hubei Taier being jointly liable for RMB 150,000 of that sum.

The appellate process concluded with a hearing in the IP Court on 21 March 2022, following a judgment being given in November 2023. The appeal court explicitly confirmed that Geneva Lab's Bio-Oil trademarks had obtained considerable fame and the company had been promoting and using them for a long time. The court found that the infringing products, including the defendant's soothing cleanser and sensitive skin repair cream were confusingly similar to the Bio-Oil products in respect of their function and usage, sales channels and consumer groups. The court also determined that GX had disrupted trademark registration management and undermined the fair competition in the market, dismissing the assertions made by GX that the use of their registered trademarks was reasonable, as being untenable. Hubei Taier, who were responsible for manufacturing the infringing products, had failed to perform a duty of care in the manufacturing process, as those products did not belong to the goods which were designated under GX's registered trademarks in the relevant Class 10, which included medical treatment products.

The Guangzhou IP Court, in determining the award of compensation, accepted arguments put forward by Ferrante IP on behalf of Geneva Labs and increased the amount to RMB 1 million, emphasising the fame that Bio-Oil had obtained, as well as taking into account the various infringing acts by then defendants and the high level of cost incurred by Geneva Labs in proceeding with the civil action and successfully removing infringing trademarks registered by GX.

The appeal was a stunning victory for Geneva Labs and its successful and well known Bio-Oil. It also serves as a reminder to those seeking to capitalise on that success that the courts will act to deter potential infringers by recognising and rewarding hard work and achievement by the imposition of punitive awards.

Source:
https://www.linkedin.com/feed/update/urn:li:activity:7201039068279808000 (English)