Suzhou Court Awards $1.5 Million to Louis Vuitton in Trademark Dispute with Chinese Tea Chain Molly Tea

China continues to assert its position as a major player in global intellectual property enforcement, as demonstrated by the recent trademark infringement case Louis Vuitton Malletier (LV) v. Molly Tea. The dispute centered on whether Molly Tea’s four-petal floral logo infringed on Louis Vuitton’s registered floral device trademarks, which are integral to the luxury brand’s globally recognized Monogram Canvas.

Louis Vuitton, renowned for its luxury handbags, leather goods, apparel, and accessories, has invested heavily in branding, resulting in certain floral device trademarks acquiring exceptional commercial reputation worldwide. Molly Tea, a popular Chinese tea and milk tea chain known for its jasmine-infused beverages, adopted a floral-forward logo used extensively across its store signage, packaging, promotional materials, and digital marketing.

LV initiated legal action alleging that Molly Tea’s floral logo was confusingly similar to several of its registered trademarks. In June 2026, the Suzhou Intermediate People’s Court ruled in favor of Louis Vuitton, awarding damages amounting to US$1.5 million. Molly Tea announced its intention to appeal the ruling.

This case offers valuable insights into how Chinese courts assess trademark similarity. Rather than dissecting individual design elements, courts evaluate the overall visual impression the trademarks create, focusing on the perspective of the relevant consumer public. Under Chinese law, trademarks that have gained exceptional commercial reputation through long-term use and extensive public recognition may receive broader protection than ordinary marks.

Importantly, Chinese trademark law protects signs functioning as commercial identifiers rather than abstract concepts, artistic styles, or cultural motifs. The court’s task was to determine whether consumers encountering Molly Tea’s logo would perceive a commercial impression sufficiently close to Louis Vuitton’s marks to cause confusion.

The ruling ignited significant public reaction in China. On social media platform Weibo, the case garnered over 400 million views, with the hashtag "Molly Tea lost the lawsuit but won the public's heart" attracting more than 30 million views. Critics argued that it was unfair for a Western luxury brand to claim exclusive rights over a geometric floral motif resembling traditional Chinese decorative patterns, raising questions about the registration and enforcement of trademarks resembling cultural motifs.

Conversely, some commentators noted that Molly Tea had previously attempted and failed to register similar floral trademarks with the China National Intellectual Property Administration (CNIPA) before adopting the contested design. This fact was cited as undermining Molly Tea’s position as a sympathetic cultural heritage claimant.

The Louis Vuitton v. Molly Tea dispute underscores the importance for brand owners to integrate trademark protection early in brand development. Conducting thorough clearance searches, obtaining legal advice during the design phase, and maintaining disciplined portfolio planning are critical to avoiding conflicts and building robust intellectual property portfolios.

For businesses operating in China, several practical lessons emerge from this case. Comprehensive trademark clearance searches should precede the adoption of new brands or logos to mitigate infringement risks. Understanding the Chinese courts’ focus on overall commercial impression and the special protection afforded to well-known marks is essential for effective brand strategy.

This case also highlights the complexities of enforcing trademark rights in cross-industry contexts and the sensitivities surrounding cultural motifs in trademark law. As China’s IP landscape evolves, brand owners must navigate these challenges carefully to safeguard their rights and reputations.