Local retail outlet, Poya clears trademark infringement allegation in a trademark battle against Chanel

　Poya International Co., Ltd. (hereinafter “Poya”), the famous local retail outlet of cosmetics and daily necessities, had been holding a raffle as an anniversary sale event from September 3, 2015 through October 6 of the same year and the winner of the raffle could bring home a CHANEL product.  Chanel filed a complaint against Poya, alleging that Poya infringed its trademark right and violated the Taiwan Fair Trade Act by using, without Chanel’s consent and due authorization, the “香奈兒” mark, CHANEL mark, the devices thereof, and pictures of Chanel products in Poya’s advertising signboards, catalogues, corporate web pages, FB fan page, and thus impeded trading order and took a free ride on Chanel’s business reputation.  Against Poya’s foregoing activities, Chanel sought damages in an amount of TWD3 million and requested that Poya should run an apology notice in local newspapers.  

　The Taiwan IP Court decided in favor of Poya and negated Chanel’s allegations against Poya’s acts of taking a free ride on Chanel’s trademarks and business reputation on the ground that the pictures used in Poya’s advertising signboards and catalogues are for emphasizing the features of the anniversary sale event and Poya’s advertisements did not characterize its “promotional products” as the ones of “香奈兒” mark, CHANEL mark.  That is, consumers are able to differentiate Poya’s products from Poya’s gifts for the anniversary sale event.  Chanel appealed this case to the Supreme Court and the Supreme Court dismissed Chanel’s appeal.  Hence, IP Court’s decision has become final.  (October 2019) 

/CCS