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Jessie ZENG Tsinghua Law School
The Supreme People's Court of the People's Republic of China
Administrative Judgment (C-E Translation)
No.27 [2016], Retrial, Administrative Judgment,
the Supreme People's Court
Translator: Jessie ZENG, Juris Master, Tsinghua Law School
Retrial Applicant (the plaintiff in the first instance, and the appellant
in the second instance): Michael Jeffrey Jordan, male, born on February
17, 1963, United States Citizen, lives in Chicago, Illinois, United States.
Authorized Representative: Tian Tian, Counsel of Fangda Partners
Beijing Office.
Authorized Representative: Qi Fang, Counsel of Fangda Partners
Beijing Office.
Respondent (the defendant in the first instance, and the appellee in
the second instance): The Trademark Review and Adjudication Board of
the State Administration for Industry and Commerce. Its address is “No.1
of Cha Manan Street, Xicheng District, Beijing.”
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Legal Representative: Zhao Gang, director of Trade Review and
Adjudication Board.
Authorized Representative: Liu Yinying, examiner of Trade Review
and Adjudication Board.
Authorized Representative: Ma Yanyan, examiner of Trade Review and
Adjudication Board.
Third Party: Qiao Dan Sports Inc. Its address is “Xi Bian Industrial
District, Chen Dai, Jin Jiang, Fu Jian Province, People's Republic of
China.”
Legal Representative: Ding Guoxiong, Chairman of the Board of Qiao
Dan Sports Inc.
Authorized Representative: Wei Zhi, Counsel of Zhong Lun Law Firm
Beijing Office,
Authorized Representative: Ma Dong Xiao, Counsel of Zhong Lun Law
Firm Beijing Office.
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Issue of the case:
Whether the disputed trademark’s registration infringed the retrial
applicant’s right of name on “乔丹”1 thereby violating article 31 of the
Trademark Law regarding “[n]o trademark application shall infringe upon
another party’s existing prior rights.”
The issue can be divided into 8 specific problems:
1. What is the legal basis for the retrial applicant’s claim on the
protection for the right of name;
2. What does the right of name that the retrial applicant claims
specifically protect;
3. How well-known is the retrial applicant in China, and what is the
extent;
4. Whether the retrial applicant and his authorized party Nike Inc. have
actively used “ 乔 丹 ” ? What is the influence of this fact on retrial
applicant’s claimed right of name;
5. Whether the disputed trademark’s specific circumstance misled the
relevant public to falsely relate the disputed trademark with the retrial
applicant;
6. Whether Qiao Dan Sports Inc.(hereinafter referred to as “Qiao Dan
1 Translator: “乔丹” is the Chinese translation of “Jordan”. Original Chinese words “乔丹” in disputed trademark are used In the case translation to avoid possible confusion.
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Inc.” ) has manifest subjective malice on the registration of the
disputed trademark;
7. What do Qiao Dan Inc.’s operation condition, its efforts in related
trademarks’ publicity and use, as well as its related trademarks’
awarded prizes and received protection influence this case;
8. Whether the retrial applicant is remiss in protecting its claimed right
of name, and what is the influence of this factor;
Specific determination to each problem:1. What is the legal basis for the retrial applicant’s claim on the
protection for the right of name?Firstly, according to Article 31 of the Trademark Law,“No trademark
application shall infringe upon another party’s existing prior rights.”
Since the civil subject legally enjoys various civil rights, and the
legislation can hardly list every right, Article 31 of the Trademark Law
does not specifically prescribe or list any specific type of the prior right,
but use the term “prior rights” as general provisions to keep pace with the
development of economy and society, and meet the need of protecting
civil party’s legitimate rights and interests.
The court maintained that prior rights which have been specifically
prescribed should be protected according to the special provisions in
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Trademark Law. However, as for those prior rights which have no
specific corresponding provisions in Trademark Law, if General
Principles of the Civil Law of the People’s Republic of China (hereinafter
referred to as “General Principles of Civil Law”), the Tort Liability Law
of the People's Republic of China (hereinafter referred to as “Tort
Liability Law”), and other laws give them protection, and the civil subject
has legally enjoyed these civil rights or interests before the disputed
trademark’s application date, then these rights should be protected in the
light of this general provision in Trademark Law. (“No trademark
application shall infringe upon another party’s existing prior rights.”)
Besides, as for the retrial applicant’s right of name in this case, paragraph
1, article 99 of the General Principles of Civil Law prescribes that
“Citizens shall enjoy the right of personal name and shall be entitled to
determine, use or change their personal names in accordance with
relevant provisions. Interference with, usurpation of and false
representation of personal names shall be prohibited.” Meanwhile,
paragraph 2, article 2 of the Tort Liability Law prescribes that “[F]or the
purpose of this Law, civil rights include right to life, right to health, right
to name….. and other personal rights as well as property rights.” Hence,
right of name can be one of the “prior rights” in Article 31 of the
Trademark Law. If the registration of the disputed trademark infringed
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other person’s prior right to name, then its registration infringed Article
31 of the Trademark Law. Therefore, the court does not support Qiao Dan
Inc.’s claim that “article 31 of the Trademark Law does not have specific
provision that prior rights include the right of name, therefore, one
cannot use the miscellaneous provisions or give liberal interpretation to
prior rights to limit others from obtaining trademark registration.”
Last but not least, the name is used to refer to, call, and differentiate
particular natural person, and the right of name is an important personal
right a natural person enjoyed on his or her name. With the development
of our socialist market economy, it is common that people who enjoyed
some popularity take commercial exploitation on their names through
contracts or other methods to endorse commodities or services, and
receive economic benefit in such business. Celebrity endorsement
becomes an important marketing strategy for operators to enhance brand
image, promote commodity or service, and expand popularity. Paragraph
5, article 2 of Advertising Law of the People's Republic of China
prescribes that, “Endorser in this Law shall mean natural person, legal
person or other organization, other than the advertiser, that recommends
and testifies for commodity or service in their own name or image.”
Article 20 of Tort Liability law regarding property loss damages resulting
from infringing other people’s personal rights also shows that China’s law
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recognize and protects the economic interest in people’s personal rights
and interest (right of name included). Hence, when Article 31 of
Trademark Law is applied to protect other’s prior right of name, this kind
of protection will not only involve the protection for natural person’s
dignity, but also cover the protection to natural person’s name,
particularly the protection to the economic benefit included in the
celebrity’s name. Since the trademark’s main function is to distinguish the
source of product or service, the unauthorized trademark registration of
the name which other people enjoyed prior right of name on will not only
harm the natural person’s dignity, but also easily confuse the relevant
public to relate the commodity or service, which has disputed trademark
on, with this natural person’s endorsement and license. This action
infringed the natural person’s right of name, and hurt the consumer’s
legitimate interest and right at the same time.
Based on the reasoning above, according to article 99 of the General
Principles of Civil Law, Article 2 of Tort Liability law, the natural person
legally enjoys the right of name. The unauthorized trademark registration
of the name which other people enjoyed prior right of name on will easily
confuse the relevant public to relate the commodity or service, which has
this trademark on, with this natural person’s endorsement and license. It
should be determined that the registration of this trademark infringed
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other people’s prior right of name, and violated provision in Article 31 of
Trademark Law.
2. What does the right of name that the retrial applicant claims
specifically protect?
The underlying point of this problem is whether the retrial applicant can
enjoy right of name on “乔丹”. This case involves the problem whether
the retrial applicant can enjoy right of name on part of its foreign name’s
Chinese translation, because “乔丹” is the Chinese translation of retrial
applicant’s English name “Jordan” (in his full name “Michael Jeffrey
Jordan”). The court believes that according to the requirement for
protecting natural person’s right of name, the retrial applicant enjoys right
of name on “乔丹”. Reasons are listed as below:
2.1When the natural person claimed protection on the right of name
for particular name according to Article 31 in Trademark Law,
several requirements have to be satisfied.
First, this particular name has to enjoy some reputation, should be well-
known to relevant public, and should be used to refer to this natural
person. To clarify the term “name” in article 5(3) of The Law of the
People's Republic of China Against Unfair Competition, Interpretation of
the Supreme People’s Court on Some Issues Concerning the Application
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of Law in the Trial of Civil Cases Involving Unfair Competition
prescribes that “The pen name or stage name of any natural person that
has certain market popularity and is known by the relevant public may be
affirmed as a “name” prescribed in Article 5(3) of the Anti-unfair
Competition Law.” Although this provision was aimed at circumstance
about “using, without authorization, the enterprise names or personal
names of others on their own goods, leading purchasers to mistake them
for the goods of others”, this action of unfair competition is also an
infringement action to others’ right of name. The determination of this
action involves the factor “leading purchasers to mistake them for the
goods of others”. This factor has a close relationship with the problem
“whether the disputed trademark’s registration will lead purchasers to
mistakenly associate the disputed trademark with retrial applicant’s
license and endorsement.” Therefore, this case can refer to provision in
the above jurisdiction interpretation to determine the requirement for
protecting the natural person’s right of name.
Secondly, this particular name should have constituted stable
correspondent relationship with this natural person. Application of the
provision “[n]o trademark application shall infringe upon another party’s
existing prior rights” involves the right conflicts between the prior right
and the right of registered trademark. In order to solve the involved right
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conflicts between the prior right and the right of registered trademark in
this case, it is necessary to reasonably determine the protection standard
for the prior right of name, and to balance the benefit between the person
who enjoys prior right of name and the person who has the trademark
right. It is wrong to determine that the disputed trademark’s registration
harms this natural person’s right of name simply because this disputed
trademark uses or includes natural person’s “name” which is only known
to some people or is only used temporarily. In the meantime, it is also
wrong to determine in the way of the Trademark Review and
Adjudication Board who claimed that the precondition for protection is
that the natural person’s claimed “right” should established sole
correspondence to this natural person. This standard is too harsh for
natural person to claim protection on right of name.
The court holds that according to paragraph 1, article 99 of the General
Principles of Civil Law, the natural person enjoy the right of personal
name and shall be entitled to determine, use or change their personal
names. However, the right of name does not prohibit others from legally
determining and using the same personal name in good faith. Because of
duplication of name, it is hard for the name to constitute sole
corresponding relationship with the natural person. Meanwhile, besides
the original name, the natural person can also have stage name, pen name,
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translated name or other names. From the perspective of historical
tradition, the ancient people can also have their style names, pseudonyms
and etc. In special circumstances, the relevant public are more familiar
with or get used to using other names, rather than the original name, to
refer to the natural person. Other names are even more well-known than
the original name. If the Trademark Review and Adjudication Boar’s
claimed “sole corresponding relationship” is the precondition for
protecting the right of name, then people who have the same name with
this natural person, or the person who have more names besides the
original one are all unable to obtain protection on right of name no matter
how well-known the name is or what is actually the recognition of the
relevant public. Hence, if particular name the natural person claimed has
already established stable corresponding relationship with this nature
person, it shall obtain the protection for the right of name, even if the
corresponding relationship does not achieve the extent of “sole
correspondence”. The court does not support the “sole corresponding
relationship” claimed by the Trademark Review and Adjudication Board
because it is too harsh.
To sum up, the court believes that when article 31 of the Trademark Law
regarding “[n]o trademark application shall infringe upon another party’s
existing prior rights” is applied, and the natural person claimed protection
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for the right of name for particular name, this name has to satisfy 3
requirements:
1. This name must have certain reputation and is well known to relevant
public;
2. The relevant public use this name to refer to this natural person;
This particular name has already established stable corresponding
relationship with this natural person.
2.2Whether foreigners can claim protection for right of name on part
of his or her foreign name’s translated Chinese name.
The court holds that the relevant public in China get used to referring to
and calling the foreigner with his or her Chinese name which is part of
foreigner name’s Chinese translation. Many Chinese will not use the full
translated version of original foreign name, and sometimes are not
familiar with or do not even know the full translated Chinese name,
because of the language and culture difference as well as the convenience
to call. Hence, it is necessary to take relevant public’s appellation habit
into account when judging whether the foreigner can claim protection for
right of name on part of his or her foreign name’s translated Chinese
name. In this case, both “乔丹” as claimed by the retrial applicant, or
“迈克尔 .乔丹” , as wrongfully determined by Trademark Review and
Adjudication Board as the retrial applicant’s full name in the sued
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adjudication, are part of the retrial applicant’s full English name’s
(Michael Jeffrey Jordan) translated Chinese name. These two names are
all used by the relevant public to call or refer to the retrial applicant. The
court does not support Qiao Dan Inc’s claim that simple family name or
its translation cannot be the object for the right of name.
2.3 Evidence in this case can prove that “ 乔丹” as claimed by the
retrial applicant satisfies 3 requirements previously elaborated by
this court, hence the retrial applicant has the right of name on “ 乔丹”.
2.3.1 In the light of the evidence submitted by the retrial applicant, many
articles in China’s newspapers, periodicals, websites regarding the retrial
applicant, and many books and special journals have used “ 乔 丹 ” to
refer to the retrial applicant. These evidences can prove that relevant
public in China, and China’s mass media extensively used “ 乔 丹 ” to
indicate the retrial applicant, and “乔丹” has already established stable
corresponding relationship with retrial applicant.
Firstly, from June 26, 1984, to May 22, 2010, influential and important
newspaper in China, namely People’s Daily, Reference News, Economic
Daily, published 282 articles about the retrial applicant, for instances
《乔丹获“冠中冠”称号》(Qiao Dan Win the Award of “Champion
of Champions” ) , 《 乔 丹 迈 入 名 人 堂 》 ( Qiao Dan Joined the
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Celebrity Circle ) and etc. From June 1985 to January 2012, around
1376 articles about the retrial applicant like 《天王一对一 乔丹 VS 科比》(King&King Qiao Dan VS Kobe) ,《与乔丹的故事》(Stories
about Qiao Dan) were published in sports , news, operating management,
study, education periodicals. Most articles used “乔丹”, and others used
“飞人乔丹”(Flying Man Qiao Dan),“迈克尔 .乔丹”(Chinese
translation of Michael Jordan), “ 飞人”(Flying Man) to refer to the
retrial applicant when the article title involves the retrial applicant.
Secondly, from 1984 to 2011, 26 kinds of books and monographs related
with the retrial applicant published and issued articles like 《乔丹写真集》 (Qiao Dan’s Photo Album),《最后的乔丹》 (Last Qiao Dan) and
etc. Within these books and monographs, 14 books names or monographs
names used “乔丹” to refer to the retrial applicant, and 7 books names
or monographs names used “ 迈 克 尔 . 乔 丹 ” (Chinese translation of
Michael Jordan) to refer to the retrial applicant.
Thirdly, in October 2015, on Tencent.com, China News, Shanghai
Hotline, China Daily, Netease and other influential websites, articles like
《中国赛成神秘乔丹行 众人不惜血本只为朝圣》(Chinese Basketball
Game Became A Mysterious Trip for Qiao Dan. Many People Spends A
Lot for This Pilgrimage ), 《NBA 中国赛乔丹成主角 篮球之神让比赛 14 / 39
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成 配 菜 》 (Qiao Dan Became the Hero for NBA China. The God of
Basketball Takes the Shine off the Game ),《乔丹代表一代人青春 沪媒:这一夜只属于篮球之神》(Qiao Dan is a Symbol for the Youth of This
Generation. Shanghai Press: This Night is Only for the God of
Basketball) were published about the retrial applicant’s business trip in
China. Most of these article titles used “ 乔 丹 ” to refer to the retrial
applicant.
2.3.2 In the first instance’s trial record, Qiao Dan Inc. admitted that “乔丹” has association with the retrial applicant, but it maintained that this
kind of association is not “sole” or “only“. Qiao Dan Inc. also admitted
that related public in China used “乔丹” to refer to the retrial applicant,
but when one mentions “ 乔 丹 ” , this two words does not necessarily
refer to the plaintiff (retrial applicant). In the first instance, the court
asked Qiao Dan Inc., “Are there anyone else who also used ‘ 乔 丹 ’ besides Qiao Dan Inc. in mainland China? Have they obtained persistent
influence and reputation in mainland China?” Qiao Dan Inc. replied, “In
the evidence we submitted, no. After our registration, this kind of thing is
impossible. Besides, we have not found this kind of thing before the
disputes. ”
2.3.3 In Qiao Dan Inc.’s prospectus, the “Brand Risk” part gave clear
indication “[a]ttention to Investors: Some consumers may relate the issuer
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and its products with Michael Jordan thereby facing misunderstanding or
confusion. Here we gave our special notice to investors.” It is clear that
Qiao Dan Inc. also realized that the related public may relate the retrial
applicant with “乔丹”.
2.3.4 Two survey reports can further prove that the related public used
“ 乔 丹 ” to refer to the retrial applicant, and “ 乔 丹 ” has already
established stable corresponding relationship with the retrial applicant.
Firstly, reasons about why the court admitted these two survey report are
listed as below.
The fact as well as the application of the law in this case is closed related
with the related public’s recognition and knowledge. Hence, objective,
fair, normative, transparent market survey is helpful for the court to make
clear about the public’s real recognition on “ 乔 丹 ” . According to the
survey facts, two survey reports were made by Horizon Research
Consultancy Group. The survey was done in Beijing, Shanghai,
Guangzhou, Chengdu, Changshu to obtain ordinary consumer’s
recognition about the relationship between Qiao Dan brand and the retrial
applicant. These two survey report’s survey procedure was notarized by
Beijing Chang’an Notary Public Office and Shanghai Oriental Notary
Public Office. These two offices made detailed explanation to the
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interviewees’ composition, survey method, sampling method, procedure
for producing the survey conclusion and etc. “Technical Specification”,
“Questionnaire”, and “Cards” for questions are also attached to the
survey reports. Hence, this survey conclusion has high authenticity and
strong probative force. It can be used together with other evidences in this
case to prove related facts. Although Trademark Review and Adjudication
Board and Qiao Dan Inc. impeached these two reports, they neither
provide disproof, nor gave any sound objection reason. Hence, the court
does not support their claims here. Second, content about the survey
reports are as below. Two survey reports shows, when interviewees were
asked “what will you firstly refer to when one mentions ‘乔丹’?”, 85%
and 63.8% of interviews replied respectively that they came up with the
retrial applicant, and 14.5% and 24% of interviewees answered that they
came up with “Qiao Dan Sports”. This survey data can inter-prove other
evidences admitted by this court, and demonstrated that the related public
often use “乔丹” to refer to the retrial applicant, and“乔丹” as well as
the retrial applicant has already established stable corresponding
relationship.
To sum up, current evidence in this case already prove that “ 乔 丹 ” enjoys considerable reputation and was well-known to the related public.
Generally speaking, the related public China used “乔丹” to refer to the
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retrial applicant, and“ 乔 丹 ” and the retrial applicant have already
established stable correspondence. Hence, the retrial applicant has the
right of name on “乔丹”.
Qiao Dan Inc. believes that there are other natural persons in China also
named “ 乔 丹 ” and some press also use “ 乔 丹 ” to refer to other
foreigners, therefore the retrial applicant cannot have the right of name on
“乔丹” . The court holds that although some other natural persons also
have their original name or Chinese translated name as “ 乔 丹 ” or
include words “乔丹”, they are not extensively known by the public. No
evidence showed that related public in China extensively know or relate
other natural persons with “乔丹” . In particular, in the first instance’s
trial record, Qiao Dan Inc. also admitted that besides Qiao Dan Inc. and
the retrial applicant, no one else “obtained persistent influence and
reputation in mainland China.” Therefore, the court does not support Qiao
Dan Inc.’s claim here.
Qiao Dan Inc. also maintained that the retrial applicant had already
exclusively licensed the property right and interest on his name to Nike
Inc., hence he does not have the right to claim property right and interests
on the right of name. The court holds that the right of name is a kind of
personal right. Although the right of name can include economic interest,
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for instance the right owner can license his or her name to others to make
commercial exploitation, the right of name itself cannot fully be separated
from the right owner, and cannot be fully transferred. Hence, even if the
retrial applicant exclusively licensed his name to Nike Inc. to make
commercial exploitation, he can still enjoy the right of name by himself,
and is entitled to independently require application revocation. Therefore,
the court does not support Qiao Dan Inc.’s claim here.
3. How well-known is the retrial applicant in China, and what is the
extent of the fame?
In this case, correct determination about how well-known is the retrial
applicant in China, and what is the extent is very significant for the court
to determine the following issue: whether the retrial applicant can enjoy
the right of name on “ 乔 丹 ” ; whether Qiao Dan Inc. has obvious
subjective malice on its registration of the disputed trademark; whether
the related public would mistakenly associate commodities with disputed
trademark with the retrial applicant. The court holds that the evidence in
this case can prove that before the disputed trademark’s application date,
until 2015, the retrial applicant consistently enjoyed high reputation in
China. He is not only well-known in basketball circle, but also become a
high profile public figure. Reasons are as below:
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3.1 As previously mentioned, the retrial applicant submitted evidence
including 1658 articles about himself on China’s related newspapers,
periodicals, as well as 26 kind of books and monographs. Although some
articles were mainly about the retrial applicant’s sports activities, the
mass media types were not limited to sports periodicals like Modern
Sports, Basketball and etc., types also include news, operation
management, study, education and other kinds of periodicals. In
particular, some very influential and authoritative newspapers including
People’s Daily, Reference News, and Economic Daily also made
extensive and continuous news report to the retrial applicant. Take into
account the authority, type, scope as well as age of the audience of the
mass media, and the publish date, number and content of related articles,
together with a large number of books and monographs about the
applicants, it is clear that current evidence can already prove that the
retrial applicant enjoyed high reputation in related public in China, and
his fame is no longer limited to basketball field.
3.2 In 2015, around the time when the retrial applicant visited China,
Tencent.com, China News, Netease and other famous Chinese websites
published many articles about retrial applicant’s participation in related
business activities. These report can prove that currently, the retrial
applicant still enjoy great reputation in China. Judging from the words
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used in these articles, for instance “Many People Spends A Lot for This
Pilgrimage”, “the God of Basketball”, “a Symbol for the Youth of This
Generation” and other emotional dictions, even if some exaggeration
rhetoric has been used, it is evident enough that the retrial applicant still
enjoys great fame in related public in China.
3.3 Two survey reports can further prove the extent and degree of the
retrial applicant’s reputation. According to these two survey reports,
interviewees are around 28 to 60 years old, and are local residents who
lived in surveyed area for more than 2 years. The population distribution
characteristic of this survey is consistent with that of the 6th National
Census in 2010. When interviewees were asked “what will you firstly
refer to when one mentions ‘ 乔丹’? ”, 85% and 63.8% of interviews
replied respectively that they came up with the retrial applicant. Hence,
interviewees and data of two survey reports can further prove that retrial
applicant is extensively well-known in China, and his reputation was not
limited to basketball field.
3.4 Besides retrial applicant’s endorsement for “AIR JORDAN” series of
Nike Inc., he also endorsed the drink “Gatorade”, the underwear “Hanes”,
the cornmeal “Wheaties Box”, and other commodities which has no
direct relationship with basketball. Endorsement activities actually show
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that retrial applicant’s image and reputation have already been
extensively recognized by related commodity operators. Meanwhile, the
related public can also have more chance to know and come into contact
with the retrial applicant by advertisement and mass media thereby
further enhancing and expanding retrial applicant’s reputation in China.
4. Whether the retrial applicant and his authorized party Nike Inc.
have actively used “乔丹”? What is the influence of this fact on
the retrial applicant’s claimed right of name.
Firstly, the court holds that, according to paragraph 1, article 99 of the
General Principles of Civil Law, “Citizens shall enjoy the right of
personal name and shall be entitled to determine, use or change their
personal names in accordance with relevant provisions. Interference with,
usurpation of and false representation of personal names shall be
prohibited.” Therefore, “use” is one of right owner’s right, rather than
right owner’s duty. Moreover, “use” is not the legal prerequisite for the
right owner to prohibit others from interfering, usurping, false
representing his or her personal names; it is not the precondition for the
right owner to claim the protection for his or her right of name.
Secondly, when article 31 of the Trademark Law is applied to protect
other people’s prior rights, whether related public would easily be
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confused to mistakenly associate the commodities or service, which has
disputed trademark on, with this natural person’s endorsement and
license, is an important factor for the court to determine whether disputed
trademark’s registration will infringe this natural person’s right of name.
Hence, according to article 31 of the Trademark Law, when three
requirements for the protection of right of name, as previously mentioned,
are satisfied, natural person are entitled to obtain protection for the right
of name even if he or she has not actively used the name. This solution is
not only beneficial for the natural person to protect his or her dignity, and
economic value in his or her name, but also good for preventing related
public from confusion. Consumer’s legitimate right and interest can be
protected.
Last but not least, the retrial applicant is an U.S. citizen. For foreigners
who enjoyed considerable reputation in China, this person or related
interest group may have not actively used their names. Sometimes,
related public, mass media in China may use or be familiar with the name
which are not the same with the name this person actively used, due to
the appellation and language habit, as well as culture difference. For
instance, in this case, related public and news media in China extensively
use “乔丹” to refer to the retrial applicant, but the retrial applicant, and
Nike Inc. use “迈克尔.乔丹” to stand for retrial applicant. Both “迈克尔.乔丹” and “乔丹” enjoy high reputation in related public, and are
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both extensively used to refer to the retrial applicant. Besides, the retrial
applicant never make objection about the above fact. Hence, the court
does not support Trademark Review and Adjudication Board and Qiao
Dan Inc.’s claim that retrial applicant does not have right of name
because retrial applicant and Nike Inc. have never actively used “乔丹”.
5. Whether the disputed trademark’s specific circumstance misled
the relevant public to falsely relate the disputed trademark with
the retrial applicant;
The specified commodity type for the disputed trademark,
No.6020569“ 乔 丹 ” band, is type 28, namely “apparatus for physical
exercises, swimming pool (for entertainment), roller skates, decoration to
Christmas trees (except light-fixtures and Candies).” “Apparatus for
physical exercises, swimming pool (for entertainment), roller skates are
all common commodities in sports, and Christmas trees (except light-
fixtures and Candies) are common commodities in daily life. The court
holds that related public can easily be confused to associate commodities,
which have disputed trademark o, with retrial applicant’s license and
endorsement. Reasons are as below:
First, evidence in this case can already prove that retrial applicant and his
name “ 乔 丹 ” have established long term and extensive reputation in
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China. Meanwhile, related public extensively used and were already used
to using “ 乔 丹 ” to refer to retrial applicant. “ 乔 丹 ” and the retrial
applicant have established stable correspondence relationship. The
disputed trademark only includes words “ 乔 丹 ” , hence when related
public see the trademark, they may soon associate it with retrial applicant.
Consequently, the related public may mistakenly regard that the
commodity with disputed trademark has particular relationship with the
retrial applicant’s license and endorsement.
Besides, In Qiao Dan Inc.’s prospectus, the “Brand Risk” part gave clear
indication “[a]ttention to Investors: Some consumers may relate the issuer
and its products with Michael Jordan thereby causing misunderstanding
or confusion. Here we gave our special notice to investors.” This notice
shows that Qiao Dan Inc. has already realized that related public may
easily associate “乔丹” with retrial applicant thereby facing confusion.
In the first instance’s trial record, Qiao Dan Inc. also admitted that “it is
possible that some people who have not bought our products may made
such association.”
Last but not least, two survey reports together with other evidences can
further prove that related public may easily be misled to associate “ 乔丹 ” with retrial applicant. Two survey reports show that 68.1% and
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58.1% of interviewees respectively think that retrial applicant has
association with “ 乔 丹 体 育 ” 2. As for interviewees who have bought
commodities branded “ 乔 丹 体 育 ” , 93.5% and 78.1% of the
interviewees respectively hold that retrial applicant is related with “乔丹体育”. When it comes to the specific relationship between “乔丹体育” and the retrial applicant, interviewees believe that the relationship may be
endorsement, authorization of the name, the enterprise operator and etc.
(results list by proportion; from high to low) Although the above survey
data is aimed at the related public’s recognition between retrial applicant
and “乔丹体育” , these two survey reports can still further prove that
related public can be easily misled to associate disputed trademark with
the retrial applicant, because “乔丹体育” is the trademark owner of the
disputed trademark, and two words “乔丹” are the most distinguish part
in the term “乔丹体育” while other two words“体育” are too ordinary
to distinguish the source of goods.
6. Whether Qiao Dan Inc. has manifest subjective malice on the
registration of the disputed trademark.
In this case, whether Qiao Dan Inc. has obvious subjective malice on the
registration of the disputed trademark is a very significant factor for the
court to determine whether the disputed trademark’s registration would
2 “乔丹体育” means “Qiao Dan Sports”. 26 / 39
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infringe retrial applicant’s right of name. The court holds that evidence in
this case can prove that Qiao Dan Inc. registered a lot of trademarks
closely related with the retrial applicant when Qiao Dan Inc. was fully
aware of the reputation of retrial applicant and his name “乔丹”. Qiao
Dan Inc. had not consulted or negotiated with retrial applicant to obtain
license or authorization. Instead, it enjoyed retrial applicant’s
“endorsement” with few cost, and was permissive to the damage result
that the related public mistakenly associate commodities, which has
disputed trademark on, with retrial applicant. Qiao Dan Inc.’s action goes
against principle in article 4 of General Principles of Civil Law. Its action
shows manifest subjective malice. Specific reasons are listed as below:
First, from 1984 to 2015, retrial applicant enjoyed long term and
extensive reputation. Related public in China mainly use “乔丹” to refer
to the retrial applicant. Qiao Dan Inc.’s original name is “福建省晋江市陈埭溪边日用品二厂”( Fu Jian Province Jin Jiang City Chen Dai Xi
Bian Commodity Factory II ) . This name has nothing to do with “ 乔丹”, but was changed to “晋江市乔丹体育用品有限公司”(Jin Jiang
City Qiao Dan Sports Commodity Inc. ) in September 2000, and then
renamed with current name in December 2009. Qiao Dan Inc.’s main
business are “design, production and sale of sports shoes, sportswear,
sports accessories.” The business is highly related with retrial applicant’s
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profession, and should have considerable knowledge of the retrial
applicant and his reputation. In fact, Qiao Dan Inc. clearly admitted in
first instance’s trial record that it did register (the disputed trademark)
when they are aware of the (retrial’s) reputation.
Secondly, as for the reason why Qiao Dan Inc. used “乔丹” to register
the disputed trademark, Qiao Dan Inc. gave three totally different
explanations in the court’s hearing, in the first instance, and in the Second
Intermediate People’s Court of Shanghai’s trial about the lawsuit between
retrial applicant and Qiao Dan Inc. on the infringement of right of name
disputes. These explanations, for instance “ 乔丹” meanings “southern
grass and trees” or “wonderful” or “general meaningful of good will”, or
“when Qiao Dan Inc. was only a village-run enterprise, the company
asked the local trademark agency in Jin Jiang City to come up names, and
‘乔丹’ is one of these proposed names”, can hardly convince the court
because it obviously runs counter to the common sense and lacks factual
basis. Hence, Qiao Dan Inc. cannot gave a justified and reasonable
explanation for using “乔丹” to register the disputed trademark.
Lastly, besides the registration for this disputed trademark, Qiao Dan Inc.
and other related companies have successively registered a series of
trademarks closely related with retrial applicants. These registrations
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further showed the subjective malice of Qiao Dan Inc. These trademarks
includes:
1. Qiao Dan Inc. registered a number of trademarks on Qiao Dan’s two
children’s names, namely “ 杰 弗 里 . 乔 丹 ” ( Chinese Translation of
“Jeffrey Jordan”), “马库斯.乔丹” (Chinese Translation of “Marcus
Jordan” ) , and these two names’ Chinese Pinyin. Qiao Dan Inc.’s
controlling shareholder, Fu Jian Bai Qun Company, the party not
involved in this case, applied for 16 trademarks on “杰弗里”( Chinese
Translation of “Jeffrey” ) , “ 马 库 斯 ” ( Chinese Translation of
“Marcus” ) ,”JIEFULI”(Chinese Pinyin of “ 杰 弗 里 ” ),
“MAKUSI”(Chinese Pinyin of “马库斯”) respectively.
2. Qiao Dan Inc. used the picture , which has the same body shape as
that of retrial applicant’s basketball playing picture published on NBA
PICTORIAL in 1998, as elements for independent trademark registration,
or as elements to combines with “ 乔 丹 ” , “QIAODAN”, or the retrial
applicant’s basketball jersey number 23 to register a number of
trademarks.
3. The affiliated company, Mai Ke Company, use image in Nike
Inc.’s No.643806 trademark, and No.4932232 trademark to apply for a
composed mark, No.1407911 trademark.
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As for NBA team LAKERS, Qiao Dan Inc.’s affiliated company Hu
Ren Dui Sports Company applied for the registration of No.1905046,
No.1967177, and No.2009309 “LAKERS TEAM” trademark as well
as No.1905050, No.1967878, and No.1961198 “湖人队 HURENDUI”
( LAKERS TEAM’s Chinese translation and its Chinese
Pinyin) trademark. Meanwhile, this company also used “ 湖人队”(Chinese translation of LAKERS TEAM)as enterprise name. Based
on the facts listed above, Qiao Dan Inc.’s use of “ 乔 丹 ” , as a
disputed registration trademark, is not an happenstance or an isolated
event. Instead, it is only one of the examples that Qiao Dan Inc. and
other affiliated companies registered a series of related trademarks on
retrial applicant when they are fully aware of retrial applicant’s high
reputation. Qiao Dan Inc. has no prior right on retrial applicant’s name
“ 乔 丹 ” , and his basketball jersey number “23”, and particularly
names of retrial applicant’s two children’s names. Qiao Dan Inc. and
the Trademark Review and Adjudication Board’s claim that Qiao Dan
Inc.’s action is a kind of renewal registration or defensive registration
has no factual and legal basis, hence the court does not support such
claim.
7. What do Qiao Dan Inc.’s operation condition, its efforts in
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related trademarks’ publicity and use, as well as its related
trademarks’ awarded prizes and received protection influence this
case.
The court holds that Qiao Dan Inc. did achieve a relatively large scale,
and has large market share as well as considerable reputation in related
business after years of operation, according to the first instance court and
this court’s ascertained facts. In No.9 Civil Judgment, final trial, 2002,
this court has determined that “sneakers packaged by Fujian Province
Qiao Dan Sports Co., Ltd.’s prior used shoe boxes are well-known
commodities, and the decoration for these shoe boxes is well-known
commodity’s distinctive decoration.” In June, 2005, Qiao Dan Inc.’s
No.870 trademark has been affirmed by the Trademark Office as
well-known marks on commodities of sneakers and sportswear. Besides,
Qiao Dan Inc. has also done extensive advertisement, sponsored sports
games, philanthropy and other activities with impressive investment and
effort. However, the above fact cannot influence the court’s determination
that disputed trademark’s registration infringed retrial applicant’s prior
right of name. Reasons are listed below:
First, judging from the right’s nature, as well as the constitutive
requirements for infringing prior right of name, the name is used to refer
to, call, and distinguish specific individuals, and the right of name is
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personal right enjoyed by individuals on his or her name. Trademark’s
main function is to distinguish the commodities or source of goods. It is a
kind of property right which has different nature from the right of name.
As previously mentioned, the key for determining whether disputed
trademark’s registration harms other people’s prior right of name is
whether this trademark will easily misled the associate public to
mistakenly relate commodities, which have disputed trademark on, with
the retrial applicant’s endorsement, license and etc. In fact, Qiao Dan
Inc.’s use of retrial applicant’s basketball jersey number “23”, name of
retrial applicant’s two children, and other registration trademarks closely
related with retrial applicant, shows that Qiao Dan Inc. turned a blind eye
to the damage result. Hence, the court does not support Trademark
Review and Adjudication Board’s claims which fails to affirm that 乔丹 ’ s correspondence relationship with retrial applicant is obviously
stronger than relationship with Qiao Dan Inc., and meanwhile falsely
determined that retrial applicant does not enjoyed right of name on “ 乔丹”, and related public will not be misled and etc.
Secondly, the specified commodity type for the disputed trademark is
type 28, namely “apparatus for physical exercises, swimming pool (for
entertainment), roller skates, the decoration of Christmas trees (except
light-fixtures and Candies).” Qiao Dan Inc. does not submit evidence to
show that the publicity and use of the disputed trademark on above
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mentioned commodities thereby proving that disputed trademark enjoyed
high reputation or distinctiveness. Moreover, the above mentioned
commodities are somewhat different from Qiao Dan Inc.’s main business,
namely “the design, production and sale of sneakers, sportswear, and
sports accessories.” Therefore, the court can hardly determine that
disputed trademark has high reputation or distinctiveness on disputed
trademark’s specified commodity type.
Lastly, according to article 4 of the General Principles of Civil Law, “In
civil activities, the principles of ….. honesty and credibility shall be
observed.” Qiao Dan Inc. applies for the registration of the disputed
trademark in bad faith. It harms the retrial applicant’s prior right of name
and accordingly goes against the principle of honesty and credibility.
Hence, Trademark Review and Adjudication Board and Qiao Dan Inc.’s
claim on market order or business success is actually not totally the
legitimate outcome under Qiao Dan Inc.’s honest operation and efforts,
but is to some extent, an achievement based on related public’s
misidentification. Safeguarding this kind of market order or business
success is not only harmful to the protection of the right owner’s
legitimate interest on the right of name, but also unfavorable to the
guarantee for consumer’s interest or the purification for the trademark
registration and use.
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Based on the above reasoning, the court holds that Qiao Dan Inc.’s
operation condition, its efforts in related trademarks’ publicity, use,
related trademarks’ awarded prizes and received protection and etc.
cannot make the disputed trademark’s registration legitimate.
8. Whether the retrial applicant is remiss in protecting its claimed
right of name, and what is the influence of this factor in this case.
According to Article 41, paragraph 2, “If a trademark that has been
registered violates the provisions of …..Article 31 of this Law, the owner
or the interested persons of the trademark may, within 5 years from the
day on which the trademark is registered, request the Trademark Review
and Adjudication Board to revoke that registered trademark.” The court
holds that “within 5 years from the day on which the trademark is
registered” is a statutory period to request the Trademark Review and
Adjudication Board to revoke the registered trademark. Legislators have
fully considered the interest balance between the prior right owner and
the trademark right owner when they prescribed this period. This period
can urge the right owner or interested party to claim rights timely thereby
avoiding the circumstance that disputed trademark’s legal validity
remains debatable long after trademark’s registration has been affirmed.
Otherwise, trademark right owner’s publicity and use of disputed
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trademark will be influenced, and trademark right owner’s legal rights
and interests will be harmed. In this case, retrial applicant requested the
Trademark Review and Adjudication Board to revoke the registered
trademark within 5 years from the day on which the trademark is
registered. This request is in accordance with the law. Hence, the
Trademark Review and Adjudication Board, and Qiao Dan Inc.’s claim
that the retrial applicant was remiss in protecting his right of the name has
no factual and legal basis, and the court does not support such claim.
To sum up, according to article 31 of the Trademark Law, prior rights
includes other person’s existing right of the name he or she enjoyed
before the disputed trademark’s application date. Retrial applicant has the
prior right of the name on the disputed trademark “ 乔丹” . Qiao Dan
Inc. used “ 乔 丹 ” to apply for the registration of disputed trademark
when it was fully aware of the high and long term reputation in China.
This registration application will easily misled the related public to
mistakenly associated the commodities, which have disputed trademarks
on, with the retrial applicant’s license and endorsement, thereby
infringing the retrial applicant’s prior right of name. Qiao Dan Inc. has
manifest bad faith in the disputed trademark’s registration. Qiao Dan
Inc.’s operation condition, its efforts in related trademarks’ publicity, use,
related trademarks’ awarded prizes and received protection and etc.
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cannot make the disputed trademark’s registration legitimate. Therefore,
the disputed trademark’s registration violates article 31 of the Trademark
Law, and should be revoked according to article 41, paragraph 2 of the
Trademark Law. The Trademark Review and Adjudication Board should
remake adjudication on the disputed trademark.
As for the issue whether disputed trademark’s registration belongs to the
circumstance listed in article 10, paragraph 1(8), namely “[t]hose
detrimental to socialist morals or customs, or having other unhealthy
influences”, the court holds that disputed trademark will not cause
passive or negative influence to China’s politics, economy, culture,
religion, nation and other social public interest and public order.
Therefore, the court does not support the retrial applicant’s proposed
retrial reason that disputed trademark’s registration violates article 10,
paragraph 1(8) of Trademark Law.
As for the issue whether disputed trademark’s registration belongs to the
circumstance listed in article 41, paragraph 1 of the Trademark Law,
namely “the registration of the trademark is obtained by deceitful means
or other illicit means”, the court holds that disputed trademark’s
registration is not actions which may disturb the market order, harm
public interest, unreasonably occupy public resource, or seek profits in
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other means. Disputed trademark’s registration does not belongs to the
“other illicit means”, as listed in article 41 of the trademark law. Retrial
applicant has not submitted evidence proving that disputed trademark’s
registration is obtained by deceitful means or other illicit means. Hence,
the court does not support retrial applicant’s retrial reason that disputed
trademark’s registration violates article 41, paragraph 1 of the trademark
law.
Based on the above reasoning, the court holds that determination of facts
and application of law in the sued adjudication and first instance
judgment are erroneous, and should be revoked. The second instance
judgment erroneously sustained the first instance judgment, and did not
review the appeal reason proposed by retrial applicant about disputed
trademark’s violation of article 31 of Trademark Law. This judgment
should be also revoked. After the court judicial committee’s discussion,
judgment is as below, according to article 4, and article 99 of General
Principles of the Civil Law of the People's Republic of China, article 2
and article 20 of Tort Liability Law of the People's Republic of China,
article 10, paragraph 1(8), article 31, article 41 of the Trademark Law of
the People's Republic of China (2001 Amendment), article 6, paragraph 2
of Interpretation of the Supreme People’s Court on Some Issues
Concerning the Application of Law in the Trial of Civil Cases Involving
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Unfair Competition, article 70 and article 89, paragraph 1(2) of the
Administrative Litigation Law of the People's Republic of China , and
article 76, paragraph1, and article 78 of the Interpretation of the Supreme
People's Court on Several Issues concerning the Enforcement of the
Administrative Litigation Law of the People's Republic of China :
1. Revoke Beijing First Intermediate Court’s No.9163 Administrative
Judgment in 2014 (Administrative, Intellectual Property, First Trial,
2014).
2. Revoke Beijing High People’s Court’s No.1915 Administrative
Judgment in 2015 (Administrative, Intellectual Property, Final Trial,
2015)
3. Revoke Trademark Review and Adjudication Board of State
Administration of Industry and Commerce’s No.052058 (2014)
adjudication on No.6020569 disputed trademark “乔丹” .4. Trademark Review and Adjudication Board of State Administration of
Industry and Commerce shall remake adjudication to No.6020569
disputed trademark “乔丹”.
The court acceptance fee for the first instance is 100 RMB, and the court
acceptance fee for the second instance is 100 RMB. All the court
acceptance fee shall be paid by Trademark Review and Adjudication
Board of State Administration of Industry and Commerce.
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This is the final judgment.
Chief Judge: Tao Kaiyuan
Judge: Wang Chuang
Judge: Xia Junli
Judge: Wang: Yanfang
Acting Judge: Du Weike
December 7, 2016
Court Clerk: Bao Shuo
Court Clerk: Zhang Bo
The Supreme People’s Court of the People's Republic of China (Sealed)
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