Local Company Found to Have Infringed LV Corporation’s Trademark

A Taiwan-based company, 2R International Co., Ltd. (Chinese: 二阿國際股份有限公司; hereinafter “2R International”) is engaged in designing and selling leather bags and creates its own “2R” brand.  The local company operates three retail shops and an online shopping website at Yahoo in Taiwan for selling 2R brand real leather products which however are found bearing an imitation pattern of Louis Vuitton Malletier Corporation’s “Epi” design mark characterized by an embossed wave-like pattern (hereinafter the “subject LV Mark”).  In March 2014, Louis Vuitton Malletier Corporation (“LV Corporation”) brought this matter to the police and the police seized eight bags from 2R International’s shops, including the Noe bucket bags and Neverfull bags, for which LV Corporation took 2R International to the court to assert trademark infringement against it and the responsible person. 

The IP Court examined this matter and rendered a judgment.  According to the IP Court judgment, the wave-like design of the subject LV Mark is not a commonly used pattern; instead, it is created by LV Corporation and has also been successfully registered as a trademark in Taiwan since December 1, 2003.  Since 1985, LV Corporation has used the subject design mark on its handbag products for a long period of time, such as, Noe bucket bags and Neverfull bags which have been the representative leading products thereof.  In this regard, any person who hears of or sights the handbags carrying the surface pattern of the subject design mark will associate such handbags with LV Corporation, and thus the subject LV mark has inherent and acquired distinctiveness. 

Moreover, compared with two genuine LV bags bearing the subject design mark presented by LV Corporation at court hearing, the 8 items seized from 2R International were found highly similar to the two genuine bags even though the seized items carry “2R” tags or embossed “ROOTY”.  Further, the IP Court sustained the alleged high similarity between the genuine LV bags and seized 2R items also because the 2R items were also bags, and similar category of LV Corporation’s products and that will easily cause confusion on relevant consumers. 

LV Corporation claimed damages in an amount of TWD1,343,000, which is 500 times of the average price of the seized 2R items, TWD2,686 per piece.  In view of the foregoing reasons and also considering 2R International’s circumstance of infringement, business scale, number of seized 2R items, the extent of similarity, and circulation of the seized items, the IP Court determined that 2R International and its responsible person should severally and jointly pay to LV Corporation TWD537,200 which is 200 times of the average price and should also run an apology notice in local newspapers for one day.  (August 2015)
/CCS