After Losing The Lawsuit, Muji Can Only Be Called MUJI In China.

After Muji, it can only be called MUJI in China.

According to Hong Kong media, Beijing Cotton Textile Co., Ltd. has recently filed a lawsuit against Japan's Muji fine parent Co., Ltd. and its China branch, Muji fine (Shanghai) Commercial Co., Ltd., which infringed its trademark rights and won the lawsuit.

The judgment says,

The trademark is registered by Hainan Nanhua industrial trading company and approved for use in the twenty-fourth category.

Products such as towels, sheets, pillowcases and quilts are valid until April 27, 2021 and pferred to Beijing cotton field textiles established in 2000 in July 21, 2004.

Beijing was not established in 2011. In the same year, Beijing cotton field authorized Beijing not to print exclusive trademark in China. The trademark involved has been highly publicised after long term publicity and use.

In the eyes of consumers, the Natural Mill Muji workshop of Beijing Cotton Textile Co., Ltd. has been regarded as a substitute for Japanese Muji products.

Despite its objection to trademark registration from 2001, the company's plan has been rejected several times, and the trademark involved in 2012 was finally revoked by the Supreme People's Court of China.

Therefore, the court ruled that the Muji brand used by the Japanese Muji company established in Shanghai in 2005 infringed the trademark rights of Beijing cotton fields, and Japanese Muji should pay 620 thousand yuan.

This means that the products sold by Japanese Muji will be labeled "MUJI" only in the future.

But in the eyes of consumers, the Natural Mill Muji workshop of Beijing Cotton Textile Co., Ltd. has been regarded as a substitute for Japanese Muji. In other words, the copycat version, from decoration, products to price, is very similar to Japanese Muji.

Japan's Muji was founded in Japan during the economic recession. In 1983, it opened its first independent flagship store in Tokyo Castle Peak. In 1990, it was officially established as good quality planning Co., Ltd.

MUJI is intended to be a "good quality product without trademarks". After reducing unnecessary packaging advertisements and middle retail links, it has launched a series of daily necessities from stationery to kitchenware and household.

People in the industry have pointed out that the Japanese imprint market in China will be eroded by an endless number of Shanzhai brands, in the final analysis or too slow to expand.

Reviewing the history of brand entry into China, since the first store was stationed in Shanghai, China in 2005, Japan's Muji has only 235 stores in the market in the past 13 years.

Unlike Japan as a "grocery store" set up at the subway station and street side, prudent Japanese Muji has always been a "boutique" image in China's large business district.

According to the latest data, the number of famous and excellent products that has just obtained 1 billion yuan financing has reached 2000 stores in China, which is 10 times that of MUJI products in China.

In addition, the issue of high price difference between Japanese and Muji in China and Japan has also become a stumbling block for brands in China. According to people familiar with the matter, the price gap between China and Japan is up to more than 2 times, and more importantly, MUJI products are made in China, and consumers spend a lot of time buying brands for rent in prosperous areas.

Although quality and design are the guarantee of premium for Muji, it is not a designer or a high-end brand in terms of business mode.

After realizing this, smarter consumers choose to go to other brands with higher cost performance, which in a way also contribute to the expansion of the cottage brand.

According to fashion headline data, although Japanese Muji has already made 9 price cuts in China, the year-on-year growth in sales in the second quarter of the brand still slowed to 10.4%, compared with 2.2% in sales.

It is noteworthy that Japan's Muji is not the first brand that has been infringed and failed to safeguard its rights in China.

Nike's brand Jordan has prosecuted.

The lawsuit lasted for five years, and finally ended at the end of last year. Jordan sports can continue to use the Chinese trademark of "Jordan" in shoes, clothing and other commodities.

The US sports brand New Balance has entered the Chinese market in the early 90s, and adopted the Chinese plation of "New York". After the company expanded its output privately, it produced a large number of shoes with poor quality, cheap, printed "N" and snatch "New York" brand. The brand was forced to withdraw from the mainland market, and it did not return to the market until 2003, and successfully registered the "New Balance" trademark.

In December 2006, New Balance officially set up a branch in the mainland of China to accelerate expansion.

However, the lag in rush registration is still the most troublesome problem for New Balance. The brand new plation of "new brun" was registered by a private enterprise in Guangdong in 2004. The company also launched a tort lawsuit against New Balance, and ended up with a compensation of 5 million yuan by New Balance.

In view of the frequent occurrence of similar infringement incidents, China adopted a new trademark law in 2014, raising the legal compensation amount of the original amount of US $75 thousand to 450 thousand US dollars. With the improvement of Chinese consumers' brand awareness, New Balance finally pulled back a game.

In August 2016, New Balance commissioned the Beijing Lusheng (Shanghai) law firm to file a trademark and unfair competition lawsuit against Shenzhen city new balance sports and sporting goods Co., Ltd., Jinjiang Qingyang xinniuilun shoe factory, Putian City Licheng District, Bo DAQ Trading Co., Ltd., Zheng Zhaozhong and the five new defendants in the new town of Songling Town, Wujiang District, and prosecute them for unauthorized use of New Balance's "N" letter Logo.

After the court ruling, five defendants were asked to pay damages amounting to 10 million yuan, and immediately stopped producing or selling footwear products using the word "N" Logo.

Since then, news of the success of luxury fashion brands in China has been heard. Over the past year, including Italy fashion brand Diesel, American sports brand Skechers, British luxury brand Dunhill and Italy men's wear Zegna have successfully protected their rights and received compensation, which is regarded as a landmark victory for global brands in China.

For the loss of Japanese Muji, there is an analysis that it is undoubtedly a wake-up call for foreign brands. It is still a long and arduous task to crack down on counterfeiting and selling in China.

Up to now, the China headquarters of the good plan has not responded to the result of the lawsuit and to change its name.