The recent opening of "Pangdulai" mall in Haining, Jiaxing, Zhejiang Province, has sparked public attention due to its striking resemblance to Henan's renowned retail brand "Pangdonglai." Market research indicates some consumers mistakenly associate the two entities, posing potential threats to Pangdonglai's brand reputation and commercial interests. This incident not only involves trademark infringement disputes but also highlights multiple challenges enterprises face in brand protection, market competition, and crisis management. When confronting such infringements, how should companies balance legal actions with business strategies? Should they adopt aggressive litigation as deterrence, leverage the situation for marketing opportunities, or promote long-term solutions through industry collaboration?
1. Does "Pangdulai" Constitute Infringement?
Determining whether "Pangdulai" constitutes trademark infringement requires analysis of three legal elements:
a) Trademark Similarity: Both trademarks begin with "胖" (Pang), followed by "东来" (Donglai) and "都来" (Dulai). The characters share visual similarity (e.g., the left radicals of "东" and "都") and phonetic confusion potential. According to Article 57 of China's Trademark Law and the Trademark Examination Guidelines, their textual composition, pronunciation, and overall visual presentation create likelihood of consumer confusion.
b) Service Overlap: Both operate in supermarket and department store retail (International Class 35).
c) Brand Recognition & Confusion Likelihood: As a nationally recognized retail brand with unique operational philosophy and premium services, Pangdonglai enjoys high visibility. Surveys show over 70% of consumers mistakenly associate the two brands, proving actual confusion has occurred.
2. Legal Challenges: Ensuring Accountability While Reducing Costs
Trademark holders often face three hurdles:
· Evidence Collection: Requires proving infringer's malicious intent and actual confusion
· Protracted Litigation: Cases may take 1-3 years, during which infringers continue profiting
· Limited Compensation: Statutory damages often barely cover litigation costs, failing to deter imitators
Proactive strategies can enhance enforcement efficiency:
· Pre-litigation evidence preservation through notarized documentation of store signage, promotional materials, and online content
· Purchasing products with retained invoices as evidence
· Issuing cease-and-desist letters to force rebranding, potentially achieving early settlement
3. Integrated Strategy: Legal, PR & Business Wisdom
a) Defensive Registration: File core trademarks and defensive variants (e.g., Alibaba's "Alibaba Papa", "Alibaba Mama"). Strengthen protection through dual copyright registration of logos and packaging designs.
b) PR Management: Issue disclaimers via website pop-ups and social media pins to clarify brand independence. Collaborate with industry associations and authoritative media for amplified messaging.
c) Industry Co-governance: Form retail coalitions against "brand parasitism", establishing self-regulation conventions. Educate consumers through landmark cases like the 2021 "Chayan Yuese" vs. "Chayan Guanse" ruling (Hunan Changsha Intermediate Court Case No. (2021) Xiang01 Minzhong 7221), where the latter was fined 1.7 million RMB for unfair competition through name and design imitation.
Beyond Litigation: Evolving Brand Value
The "Pangdulai" incident reflects systemic challenges rather than isolated case. While legal recourse remains essential, lasting solutions require:
· For imitators: Market forces ultimately punish unoriginal players
· For innovators: Continuous service innovation to build irreplicable advantages
· For industries: Enhanced trademark review mechanisms and stricter penalties for malicious registration
Remember: Trademarks can be copied, but brand essence cannot; Legal victories matter, but winning consumer loyalty ensures enduring success.
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