By Ms. Haoyu Feng and Ms. Jiao Ren, Chofn IP
On November 24, 2024, during the 14th China International Trademark and Brand Festival, the China Trademark Association (CTA) announced the "2022-2023 Typical Trademark Cases". Chofn IP is honored to have one of its cases selected as a standout example of effective trademark enforcement.
The Hynix Trademark Infringement Case: Customs Seizure and Enforcement
Case Background:
In this case, the Chinese Customs detained 241,621 integrated circuit chips bearing the "Hynix" trademark based on the right holder's recorded trademark rights. The exporter, attempting to evade enforcement, submitted extensive procurement documents to claim that the chips had been legitimately acquired, dismantled, processed, and repackaged for resale, thereby invoking the "exhaustion of rights" principle.
In order to clarify the facts, the Customs held a hearing. Chofn represented the right holder at the hearing, analyzed the exporter’s evidence and identified significant inconsistencies in product models and volumes referenced in the procurement documents. Chofn also pointed out that some documents were internal records between the exporter and its affiliated companies, and presented a statement from the original supplier denying the legitimacy of the transaction, challenging the authenticity of the exporter’s documents. Chofn further argued that even if the original products had been legally purchased, the exporter's dismantling, polishing, and repackaging of the chips compromised their quality and altered their packaging, harming the trademark's reputation and function as a quality guarantee.
As a result, the Customs determined that the products were infringing, ordered their confiscation, and imposed a fine of CNY 241,199 on the exporter.
Key Takeaways and Significance of the Case:
Although the exporter presented evidence that appeared to show the products were legally sourced, Chofn’s thorough analysis revealed significant flaws that undermined the claim of legitimate sourcing. Chofn demonstrated discrepancies in product models and flagged inconsistencies in transaction records. This comprehensive approach led the exporter to admit infringement and issue an apology.
In this case, Chofn worked closely with Customs, providing expert opinions, precedents for reference and the necessary documentation to support the investigation. The case highlights the importance of hearings, where attention to every detail significantly improves the chances of proving infringement.
The case underscores the critical role of Customs enforcement in combating trademark infringement. It also highlights the growing capability of China's Customs teams to resolve complex IPR cases through hearings, reducing the need for litigation. Such processes provide an effective deterrent against counterfeit goods entering or exiting China.
Customs Enforcement: A Key Pillar in Intellectual Property Protection
Customs enforcement plays an essential role in protecting intellectual property by regulating the flow of goods across borders. As a comprehensive IP solutions provider, Chofn excels in customs enforcement, offering expertise in IP laws, procedures, and efficient communication. By addressing potential infringement promptly during customs clearance, Chofn helps clients build robust protection for their intellectual property assets.
This recognition reinforces Chofn’s commitment to excellence in trademark enforcement and its dedication to safeguarding clients' rights.
