SPC upholds Schneider China's 106 million RMB trademark win

The Supreme People's Court (SPC) recently upheld a ruling in favor of Schneider Electric (China) Co., Ltd. (Schneider China) in a significant trademark infringement and unfair competition case against Zhenjiang Schneider Electric Co., Ltd. (Zhenjiang Schneider) and others, as announced on September 15.

The SPC dismissed Zhenjiang Schneider and others' appeal and maintained the original judgment from the Zhejiang Higher People's Court.

Schneider China accused Zhenjiang Schneider and others of maliciously registering a similar company name and using it to gain an unfair advantage, constituting trademark infringement and unfair competition.

The Zhejiang Higher People's Court initially ruled in Schneider China's favor, ordering Zhenjiang Schneider to stop infringing on Schneider China's trademarks "Schneider" and "Schneider Electric", cease using its company name, and discontinue the domain "zj-schneider.com". Zhenjiang Schneider and others were ordered to compensate Schneider China with RMB 106,180,819 for economic losses and RMB 500,000 for legal expenses.

The defendants argued Schneider China exceeded the statute of limitations, but the court found the infringement ongoing since Zhenjiang Schneider had used the infringing name since 1999. The court also determined Zhenjiang Schneider's actions caused public confusion and constituted trademark infringement and unfair competition.

Additionally, the court highlighted Zhenjiang Schneider's clear malicious intent of leveraging Schneider China's brand reputation.

Punitive damages were therefore applied. The amount was calculated based on Zhenjiang Schneider's profits from June 2017 to March 2022. Given the severity and duration of the infringement, the court applied a multiplier of three to the base profit amount, resulting in total damages of RMB 106,180,819.

Despite Zhenjiang Schneider's appeal, the SPC found no merit in their arguments and upheld the initial ruling, affirming both the decision and the awarded damages.

This case marks another significant win for Schneider China in defending its legitimate trademark rights. Earlier this year, Schneider China was awarded 40 million RMB in a similar case against a Jiangsu-based elevator manufacturer, Schneider Elevator.