Shanghai IP Court concludes 30-year Delixi trademark dispute

The Shanghai Intellectual Property Court has issued a final judgment, ending a 30-year intellectual property (IP) dispute between two Chinese companies using the Delixi name. The court ordered Shanghai Delixi Switch to stop using the "Delixi" name and pay Delixi Group RMB 5 million for economic losses.

For nearly three decades, China’s electrical market has been confused by two companies named Delixi. One, Delixi Group, is a leading enterprise in China’s electrical industry and has been listed among China’s top 500 companies for 23 consecutive years. The other, Shanghai Delixi Switch, operates in a similar business scope.

Disputes between the two parties date back over 30 years. Delixi Group, which adopted "Delixi" as its trade name in 1991, has grown to become a leader in China’s electrical industry. The "Delixi" trademark was recognized as a well-known Chinese trademark in 1999. Shanghai Delixi Switch, founded in 1994, registered a series of affiliated companies, including Delixi Decoration, Delixi Industry and Delixi United Switch Group. The company prominently used the "Delixi" name in their business activities, mimicking Delixi Group’s online store design and using fake "top 500" lists for promotion.

In response, Delixi Group took various measures, including administrative complaints and lawsuits. Over the years, companies like Delixi Decoration and Delixi Industry were forced to rename or dissolve.

In 2020, the Beijing Intellectual Property Court supported Delixi Group’s request to rename Delixi United Switch Group. Appeals to higher courts were unsuccessful, and the company was forced to rename into Shangde United Electric Group in November 2021. In May 2022, the Wenzhou Intermediate Court ruled that the renamed Shangde United Electric Group had engaged in unfair competition and ordered it to compensate Delixi Group RMB 5 million, a decision upheld by the Zhejiang High Court in August 2022.

However, the core issue of Shanghai Delixi Switch’s continued use of the Delixi name remained unresolved. In 2022, Delixi Group appealed to the Shanghai Intellectual Property Court, requesting an order for Shanghai Delixi Switch to stop using the "Delixi" trade name and pay RMB 30 million in damages.

In its final judgment on September 19, the Shanghai Intellectual Property Court found that Shanghai Delixi Switch’s use of the "Delixi" name was intended to "free-ride" on Delixi Group’s reputation, causing public confusion and constituting unfair competition.

The court ordered Shanghai Delixi Switch to immediately stop using any trade names containing "Delixi" and to pay Delixi Group RMB 5 million in economic losses and RMB 168,800 in expenses incurred to stop the infringement within fifteen days from the effective date of the judgment.