Beijing Wangzhihe Food Group has rejected the unreasonable demand: "In exchange for compensation we will give up the trademark…" put forward by the defendant, the OKAI company. This is the first instance in which the time-honored Chinese fermented bean-curd brand Wangzhihe has attempted to safeguard its legal rights overseas. Wangzhihe filed a "trademark infringement and unfair competition" case against OKAI in Germany more than two years ago. Now it is awaiting the court's judgment.

Wolfgang, the German lawyer acting for Wangzhihe Group, introduces the Wangzhihe case in China. He is holding the design of the trademark registered by OKAI, the German-based company, which has infringed the intellectual property rights of Wangzhihe Group. [Hu Xuebai]

The case dates back to July 2006. When Wangzhihe Food Group attempted to file for a trademark registration in Germany, it found that its logo had been registered by OKAI, a German based company, and that the design was identical to that of the Wangzhihe trademark.

After Wangzhihe and OKAI failed to reach an agreement, Wangzhihe filed an action against OKAI for trademark infringement.

On November 14 a Munich court ruled that OKAI has infringed the lawful rights of Wangzhihe on the basis of unfair competition because it registered its trademark knowing that it is a famous old Chinese brand. According to German law, the court ordered that OKAI was prohibited from using the "Wangzhihe" trade mark and that its "Wangzhihe" trademark registration should be cancelled. Last February, OKAI appealed to the Munich High Court.

Wang Jiahuai, general manager of Wangzhihe Group, said that the case will be heard at the Munich High Court soon. OKAI believes that its registration of the trademark is legal, and takes the position that if Wangzhihe Group pays them compensation, OKAI will cancel and stop using the trademark.

"Our trademark was stolen by them. This is an absolutely groundless demand," said Wang.

Wolfgang, the German lawyer acting for Wangzhihe Group, has also come to China. According to him, OKAI has broken the law in registering the same trademark as Wangzhihe. The dispute covers two areas: OKAI believes that there is no competition between Wangzhihe Group and OKAI as OKAI is a selling company while Wangzhihe Group is in manufacturing; it also claims that Wangzhihe Group has no marketing activities in Germany. It argues that according to trademark law in Germany its trademark registration is not against the law.

"OKAI has not started production to date, but it is possible that it might produce products with 'Wangzhihe' trademark and sell them," said Wang. Wangzhihe Group sells its products in Germany and those products all come through its distributors. Sales in Germany can be proved by the contracts signed between Wangzhihe Group and its distributors in charge of the European and German markets. "OKAI's above-mentioned arguments are without foundation," added Wang.

The Munich High Court will make a final decision on April 23, "We are looking forward to a fair judgment," said the German lawyer.

(China.org.cn by Zhang Ming'ai, March 30, 2009)