FTC’s Disposition of Misuse of Melchers’s Company Name Earns Praise of Taiwan’s IPR Protection Efforts from Foreign Enterprises.

　The Fair Trade Commission (FTC) disposes the case involving misuse of the company name, Melchers, the name of the well known long-established German trading company.  The FTC’s decision is regarded the manifest of Taiwan’s effort in protecting the IPR held by foreign enterprises.

　The FTC disposed of the case at the end of December 2007.  The case involves misuse of Melchers’s company name by Ta-Yih Development & Trading Corp. (Ta-Yih)  Ta-Yih labeled the name Melcher on each of the manual motor tools it manufactures and sells and such practice leads the consumer to confuse Ta-Yih’s said tool products with the BOSCH tool products Melchers is authorized to distribute.  The FTC impose upon Ta-Yih a TWD0.5 million fine for engaging in such unfair practice. 

　Melchers, a reputable international trader distributes mainly German products.  It is the general distributor of the BOSCH tools.  Melchers is the specific portion of the company name, not a registered mark.  Ta-Yih, the respondent, used Melchers to label and market its own product which is identical to the products Melchers sells with a view to deceiving the consumer at the expenses of Melchers’s reputation and business.

　According to Melchers Taiwan, the FTC gave Melchers a fair and just decision.  To foreign based businesses in Taiwan, FTC’s decision equals to a declaration of Taiwan being a reliable environment for foreign investments where there is sound legal protection of intellectual property rights as opposed to the PRC.  (2008.04)

/EMA