Recently, in a case of trademark infringement and unfair competition through false publicity between LIQUI-MOLY GESELLSCHAFT MIT BESCHRANKTER HAFTUNG (hereinafter referred to as "LIQUI MOLY company") represented by Unitalen Law Firm and Liquid Power Lubricant (Zhuhai) Co., Ltd (hereinafter referred to as "LIQUID POWER Company"), the Second People's Court of Zhongshan City, Guangdong Province heard and ruled the following: the behavior of using the logos "", "", and "" by LIQUID POWER company on products such as "lubricating oil" and "engine oils" infringed on the exclusive right to use the registered trademarks "", "", and "LIQUI MOLY"(力魔) of the LIQUI MOLY company. The LIQUID POWER company's claim that the sued lubricating oils and engine oils are from Germany and its use of the German national flag and the expression "GERMAN TECHNOLOGY" on the package constituted unfair competition through false publicity. The court ordered the LIQUID POWER company to pay 700,000 yuan in compensation.

Case Brief

The LIQUI MOLY company, founded in 1957 and headquartered in Ulm, Germany, is a globally renowned manufacturer of premium lubricating oils, engine oils, additives, automotive care products, etc. Its products are sold in over 130 countries and regions worldwide and are certified by renowned automakers such as Porsche, BMW, Mercedes-Benz, Audi, Volkswagen, and Opel. It entered the Chinese mainland market in 2005, sponsoring auto rallies and other sports events for a long time. It has also won influential industry awards such as "Annual Leading Brand of Auto Bild," "CARTEC Cup Automotive Service Golden Merit Awards," and "Brands Recommended by ASWorld." The trademarks "", "", and "LIQUI MOLY" enjoy high popularity and reputation in the industry.

The defendant, LIQUID POWER Company, produces and sells lubricating oils, engine oils, and other products with the logos "", "" and "", and markets them through WeChat Mini Programs, offline partner stores, and other channels (as shown in the following images).

Judgment viewpoint

With regard to the determination of trademark infringement, the Second People's Court of Zhongshan City, Guangdong Province determined through its trial that the trademarks "", "" and "LIQUI MOLY" enjoy high popularity, the sued logos "", "" and "" are similar to the plaintiff's trademarks in terms of arrangement structure, letter composition, pronunciation, background color, visual effect, and Chinese meaning, such that when used on the same goods of lubricating oils, they may easily mislead the relevant public into believing that the products of both parties come from a series of trademarks of the same entity or have a specific connection, causing confusion and misidentification, thus constituting trademark infringement. The court ordered the LIQUID POWER company and others to stop the sued infringing behaviors immediately.

Regarding the unfair competition behavior through false publicity, the court held that the LIQUID POWER company's claim that the sued lubricating oils and engine oils are from Germany and its use of the German national flag and the expression "GERMAN TECHNOLOGY" on the package may easily mislead the general public to believe that the brand or technology of the engine oil and lubricating oils produced and sold by the LIQUID POWER company are originated from Germany, which is not true or objective, sufficient to create a false impression among the general relevant public about the advertised goods or services, leading to misunderstanding, and thus constituting unfair competition behaviors through false publicity.

Regarding the amount of compensation, the court comprehensively considered the nature of the infringement, the degree of subjective fault, the duration and consequences of the infringement, as well as factors such as the high market influence and popularity of the LIQUI MOLY company's German trademarks, and determined the total economic loss and reasonable expenses to be 700,000 yuan.

Case Significance

Through this case, Unitalen assisted the LIQUI MOLY company in tackling counterfeit lubricating oil products on the market. The company successfully defended its intellectual property rights in the Chinese market and prevented consumers from suffering economic losses caused by purchasing counterfeit products. This also reflects the Chinese government's commitment and efforts in intellectual property protection, creating a more stable and transparent legal environment for international companies investing in China.