U.S. trademark litigation involving Chinese companies is no longer a one-way street. Historically, Chinese companies were defendants in U.S. trademark litigation. As a low-cost manufacturer, China exports to America myriad goods “Made in China,” which are often accused of infringing U.S. trademarks. While the lawsuits have traditionally been before courts of general jurisdiction, a new trend has emerged where Chinese companies are being sued before the International Trade Commission (ITC). There are signs, however, that the historical practice of Chinese companies merely being defendants may be changing such that they now sometimes are bringing trademark litigations in U.S. courts. For example, as part of their global expansion, many large Chinese companies are actively pursuing innovation and taking affirmative steps to protect their trademark rights.
Companies as Trademark Defendants
Chinese companies have long been accused of making counterfeit products that infringe U.S. trademarks. Approximately 81 percent of the value of the counterfeits seized by American customs in 2010 originated in China.1 While some Chinese companies did appear and defend themselves, many simply ignored these lawsuits. As a result, knowingly or not, many forfeited their access to the American market. For example, in Herman Miller Inc. v. Alphaville Design Inc. et al. (Yongfeng), Herman Miller sued Yongfeng Furniture Corporation, claiming that Yongfeng made fake EAMES lounge chairs and ottomans banded with Herman Miller’s registered “EAMES” mark and exported them to the United States.2 Herman Miller served Yongfeng in China in conformity with the Hague Service Convention,3 to which China is a signatory. However, Yongfeng did not respond or answer the complaint. Consequently, on Oct. 22, 2009, a California court entered default judgment, permanently enjoining Yongfeng from exporting into the United States counterfeit EAMES lounge chairs and ottomans.
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