US Ginseng Board of Wisconsin wins compensation from infringer

Recently the Shanghai 1st Intermediate People's Court made the first instance judgment on the trademark infringement case between the US Ginseng Board of Wisconsin (GBW) and two Chinese companies. The court ruled that Guangdong Zhenghan Pharmaceutical Co. Ltd. should stop the infringement and compensate the plaintiff 150,000 RMB yuan for its economic loss and reasonable costs of the action. Another defendant, Shanghai Huashi Pharmacy Co. Ltd., was ordered to stop selling the infringing goods.

In April 2007, GBW found that the "Zheng Shang Zhuang" ginseng, sold by Shanghai Huashi Pharmacy, used the figure of eagle which was similar to the trademark registered by GBW. The infringing goods were manufactured by Guangdong Zhenghan Pharmaceutical Co. Ltd. Then GBW instituted a proceeding before the Shanghai 1st Intermediate Court against the two defendants.

The court held that, since GBW registered the figurative trademark of eagle in China, the registered trademark shall be protected. The trademark used by Zhenghan Pharmaceutical may have the public assume that its products were related to GBW, which infringed the exclusive right enjoyed by GBW. Therefore, Zhenghan Pharmaceutical shall bear the liabilities for infringement.

According to the court, since Huashi Phamacy could provide the evidence for the legal source of the goods it purchased, it could be exempted from the liability for compensation. However, it should immediately stop selling the infringing goods.