A court in Shenzhen has ruled in favor of Xiaomi Technology Co. Ltd. to receive a 30-million-yuan (US$4.73 million) compensation in a lawsuit against Shenzhen Xiaomi Co. Ltd. over unfair competition and trademark infringement.
The case was selected into the first batch of six typical cases applicable for punitive damages regarding IPR (intellectual property right) infringements in Guangdong Province, a source from the Shenzhen Intermediate People’s Court said Tuesday.
Tech giant Xiaomi Technology Co. Ltd., established in March 2010, registered the Xiaomi trademark and its products include mobile phones and video phones. It acquired the registration of MI, Zhimi and other related trademarks. The defendant, Shenzhen Xiaomi Co. Ltd., used trademarks that look similar to Xiaomi Technology on 182 household appliances and sold them online on T-mall under the name Mi Digital Shop, Mi Shop or Xiaomi. The online shops earned 154 million yuan in the last three years, according to a report from Shenzhen Special Zone Daily on Tuesday.
The Shenzhen Intermediate People’s Court imposed punitive damages of 37.4 million yuan, which is three times the profit the defendant made by intentionally infringing Xiaomi’s popular trademark. The amount has exceeded the appellant’s 30-million-yuan compensation demand.
Two other cases in the first batch of six typical cases released by Guangdong Higher People’s Court were also trademark disputes.
In March 2021, the Supreme People’s Court unveiled interpretation of the application of punitive damages in civil cases regarding IPR infringements. The factors to be considered in deciding punitive damages in trademark infringement cases include malice of the infringer, the severity of the circumstances and the severity of the consequences of infringement.
One of the other six cases ruled for trademark infringement by Guangdong Higher People’s Court was selected to the first batch of six typical cases of the Supreme People’s Court. The case involved Opple Lighting Corp., which holds the registered trademarks “欧普OPPLE” and “欧普,” against a lamp maker.
In the last three years, Guangdong courts concluded 148 cases where punitive damages regarding IPR infringements were handed out.