TTLC applied for invalidation review of the registration for Tsingtao Beer and Yenjing Beer, famous beer from China, as trademarks in Taiwan

Tsingtao Beer and Yenjing Beer launched into Taiwan market last year and resulted in an 8% decrease of the sales for Taiwan Beer. However, the application for registering “Taiwan Beer” as a trademark in China was rejected by China for the reason that “Taiwan” refers to “a name of an administrative division which belongs to a province level or upper level, or a foreign place name commonly known to the public.” Taiwan Beer thus cannot be marketed in China. Taiwan Tobacco and Liquor Corporation (“TTLC”) emphasized that the trademark “Taiwan Beer” has been granted registration by the EU and the US and such trademark has acquired a secondary meaning as “Tsingtao Beear” which also contains a place name for being marketed in Taiwan for years. Given that “Tsingtao Beer” could be registered as a trademark, why couldn’t “Taiwan Beer” be registered as a trademark? Some legislators questioned that China and Taiwan are both the WTO members but China’s doing is contrary to the principle of national treatment, and there are unequal dealings between cross-strait trades.