Xiaomi Technology Co., Ltd. (hereinafter referred to as Xiaomi Technology) sued Shenzhen Xiaomi Trading Co., Ltd. (hereinafter referred to as Shenzhen Xiaomi) for infringement of trademark rights and unfair competition. Recently, the dispute of first instance fell.

The judgment showed that Shenzhen Xiaomi constituted a malicious infringement and was sentenced to compensate Xiaomi technology for 30 million yuan.

On February 11, the lawyer representing the plaintiff Xiaomi technology said that neither the plaintiff nor the defendant appealed. At present, the case has taken effect and entered into execution.

On the 12th, Zhu Sulin, an agent ad litem entrusted by the defendant Shenzhen Xiaomi Trading Co., Ltd. and an employee of the company, also said that the two sides had reached an agreement not to appeal.

The court decided that the amount of compensation was effective and worthy of attention. This is not the first time that Xiaomi technology has been compensated in trademark infringement and unfair competition disputes. In 2019, an enterprise was sentenced to compensate Xiaomi technology for losses of up to 50 million yuan.

Screenshot of trademark information involved

Enterprise e-commerce stores were sued by Xiaomi technology for using "Xiaomi" and other labels

According to the above judgment issued by Shenzhen intermediate people's Court of Guangdong Province on December 31, 2021, the plaintiff is Xiaomi Technology Co., Ltd., the legal representative is Lei Jun, and the company was established in March 2010.

The defendant is Shenzhen Xiaomi Trading Co., Ltd. and the legal representative is Zhu Lingping, which was established in December 2012.

The judgment shows that the plaintiff Xiaomi technology applied for the registration of the written trademark "Xiaomi" No. 8228211 in April 2011, and made a lot of publicity and extensive use of its trademark.

The defendant Shenzhen Xiaomi used the store name of "Xiaomi digital franchise store" and the enterprise name of "Shenzhen Xiaomi Trading Co., Ltd." on the sales pages of all 182 commodities such as chargers, mobile power supplies, fans and massage machines sold in its e-commerce tmall store, which was an act of unfair competition.

Among them, "Xiaomi digital franchise store", "Xiaomi franchise store" and "Xiaomi" are marked in the sales title of 114 products, which is recognized as trademark infringement.

Screenshot of Shenzhen Xiaomi Trading Co., Ltd. has changed its name

The defendant enterprise made 154 million profits in three years and was sentenced to compensate the plaintiff for the loss of 30 million yuan

The court finally ruled that the defendant Shenzhen Xiaomi compensated the plaintiff a total of about 47 million yuan. Because the amount exceeded the plaintiff's claim, it fully supported the plaintiff's claim of 30 million yuan of Xiaomi technology.

On February 11, Wang Wei, a lawyer representing the plaintiff Xiaomi technology, introduced that "[the plaintiff Xiaomi technology filed the compensation amount] is cautious and dare not be too high. After all, there is uncertainty about whether it can be applied and how many times the punitive damages can be applied."

Wang Wei said that both sides do not appeal, and the case has taken effect and entered into execution. According to the information released by Shenzhen intermediate people's court, after the judgment of the first instance of this case was pronounced, both parties obeyed the judgment and reached a unanimous mediation opinion under the auspices of the court.

On February 12, Zhu Sulin, the defendant's agent ad litem and employee of Shenzhen Xiaomi Trading Co., Ltd., said that at present, the two sides have reached an agreement and will not appeal.

The defendant, Shenzhen Xiaomi Trading Co., Ltd., has changed its name to Shenzhen Yinuo Trading Technology Co., Ltd. According to the judgment, the shop of "Xiaomi digital franchise store" involved has also been modified as "Shenzhen Xiaomi trade digital franchise store" on February 4, 2021. There are no goods on sale in the shop since February 20, 2021.

At present, there are no results in searching tmall stores under the names of "Xiaomi digital franchise store" and "Shenzhen Xiaomi trade digital franchise store".

Previously, Xiaomi technology filed a lawsuit with similar causes of action and was compensated 50 million yuan

The above dispute is not the first case in which Xiaomi technology sued and was compensated for trademark infringement and unfair competition. Previously, an enterprise was sued and sentenced to compensation of up to 50 million yuan.

According to public information, Xiaomi Technology Co., Ltd. previously sued Zhongshan Pentium Electric Appliance Co., Ltd. for trademark infringement and unfair competition. Since 2016, the defendant Zhongshan Pentium Electric Appliance Co., Ltd. has highlighted the use of "Xiaomi life" logo in the electromagnetic oven, rice cooker and other alleged infringing goods, business premises, websites, domain names, wechat public accounts and other places.

On December 31, 2019, the first instance of Nanjing Intermediate People's court ruled that the defendant Zhongshan Pentium company and others would apply punitive damages and compensate Xiaomi technology for economic losses of 50 million yuan. The defendant refused to appeal to Jiangsu Higher People's court. The second instance decision rejected the appeal and upheld the original judgment.

According to the news of Jiangsu high court in April 2020, this case is the first case to clearly apply the punitive damages system to determine the amount of compensation after the revision of the trademark law in 2019, and it is also a trademark infringement case with the highest amount of compensation determined by the punitive damages system.