Invalidation of TTL's Taiwan Sorghum Liquor Chinese Character Mark Final with Binding Effects.

On the appeal taken by Taiwan Tobacco & Liquor Corporation (TTL) for the Taiwan sorghum liquor Chinese character mark () , the Supreme Administrative Court (SAC) upholds the IP Court's decision holding that the two Chinese characters Tai Wan as a whole being descriptive of the origin has neither acquired distinctiveness nor secondary meaning.  In short, TTL is denied for good exclusive trademark right in the mark.  (SAC ruling of 102-Cai-No. 980 of 18 July 2013.)

TTL filed the trademark application with Taiwan IPO on 11 May 2009 for registering the above Chinese character mark.  The application was subsequently granted.  Tainan County Alcohol Trade Associate (TCATA) opposed the approval of the mark alleging the mark being non-registrable under the Trademark Act.  Taiwan IPO granted the opposition and revoked the approval of the mark in April 2012.  TTL appealed but in vain and brought the matter before the IP Court.

TTL argues the opposed mark certainly has acquired distinctiveness through its long-term (nearly 60 years) extensive use.

TCATA believes neither the tobacco business nor the alcohol business is monopoly and the opposed mark which should be publicly owned cannot be asserted a proprietary mark owned by any particular enterprise.

The IP Court holds that TTL indeed has been in the business of making and selling sorghum liquor for many years and it has distributed its sorghum liquor products under various brand names other than the disputed mark, including Yu San Sorghum and Taiwan Red Sorghum.  Further, TTL has used different labels varied in design to market its sorghum liquor products including a fairly limited amount of the Taiwan Sorghum Liquor product.  As such, it would be unreasonable to expect the consumer to be readily aware of the mark being owned by TTL.  The IP Court therefore dismissed TTL's action on lack of sufficient evidence to establish the allegation that the mark in issue amounts to an insignia representing TTL's product and has acquired distinctiveness through the long-term use by TTL.  TTL appealed the IP Court decision to the SAC in no avail and invalidation of the mark is now final with binding effects.  (July 2013)
/EMA