The FERRERO Group, known globally for its popular confectionary brands, has secured another significant victory in protecting its intellectual property rights (IPR). This success in particular highlights the value of mediation in settling disputes, offering a cost-effective and efficient resolution pathway in complex legal cases in China. In the recent case, FERRERO successfully stopped IPR infringement in China and secured compensation of RMB 1.9 million (approximately EUR 240,000) through mediation. This outcome marks another step in the company's ongoing efforts to protect its trademarks in international markets and signals options for similar cases within China.

The issue began in 2022 when FERRERO discovered that two individuals, operating through Hong Kong-based companies with names resembling FERRERO, were manufacturing and selling products that infringed on FERRERO's trademark rights. Additionally, these parties had attempted to register multiple trademarks similar to FERRERO's, further complicating the case.

(FERRERO product)

(Infringer's Products)

Faced with this clear infringement, FERRERO initiated civil actions in both the Quanzhou Court in Fujian province and the Yangzhou Court in Jiangsu province, seeking damages of RMB 3 million (about EUR 380,000) per case for trademark infringement and unfair competition. As the legal process progressed, the pressure of the cases led the infringers to approach FERRERO to negotiate a settlement. Recognizing the potential benefits of mediation, FERRERO opted to engage in settlement discussions, aiming to avoid the investment associated with prolonged litigation. The company's strategy paid off, as mediation provided a platform for both parties to resolve the conflict amicably while securing a fair financial outcome.

A crucial turning point came when the WIPO Arbitration and Mediation Shanghai Service facilitated a mediation meeting, appointing a designated mediator. The mediator listened to the claims and concerns from all sides, offering professional insights that helped bridge gaps and move toward resolution.

By February 2024, FERRERO and the infringers finalized a settlement agreement. Under the terms, the infringers agreed to pay RMB 1.9 million (EUR 240,000), deregister the two Hong Kong companies involved, and cancel the infringing trademarks. Moreover, they committed not to apply for any future trademarks identical or similar to FERRERO's. A punitive clause was also included, requiring immediate payment of RMB 2 million (EUR 255,000) in case of any future violations.

The case, promoted by both the Quanzhou and Yangzhou Courts as a model for IPR protection, underscores the effectiveness of mediation in resolving complex trademark disputes. Beyond being a significant win for both FERRERO and FERRANTE IP, the case illustrates how mediation can offer a flexible, less adversarial approach to achieving legal outcomes. It highlights how early negotiation and intervention can help companies protect their intellectual property rights with more efficient expenditure of time and money. This victory points to the growing importance of mediation as a potent tool for businesses facing IPR challenges in international markets, offering both timely resolutions and strong protections for their valuable brands.