Nestle wins trademark lawsuit over Dutch firm Dumex in Chinese court, receiving 200,000 yuan in compensation

April 3, 2008

On March 12, the trademark dispute between the two well-known powdered milk manufacturers – Nestlé Company and Royal Numico Dumex was adjudicated in Beijing No.1 Intermediate People’s Court (“the Court”). The Court ruled that Dutch firm Royal Numico Dumex should stop using the trademark of a shield device on its powered milk products and compensate Nestlé Company 200,000 yuan (28,129 U.S. dollars) for economic loss and reasonable cost in the litigation. Further, the Court ordered Xizhimen branch of Itoyokado Mall should stop selling infringing products.

Nestlé Company filed an application for international registration of its trademark of a shield device on December 11, 2001, designating China for territorial extension. The registration is approved by China Trademark Office (CTMO) and will expire on December 11, 2011. Goods approved for the extended protection includes food for babies in Class 5. Royal Numico Dumex used combined golden shield marks containing shield device on the package of its Dumex infant formula milk powder, on its website and in advertising. In addition, Xizhimen branch of Itoyokado Mall sold the above infringing product.

In September 2007, Nestlé Company sued Royal Numico Dumex for trademark infringement and unfair competition requesting Royal Numico Dumex and Xizhimen branch of Itoyokado Mall to stop infringement and compensate the damages within the statutory range of 500,000 yuan.

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