Suzhou Court Grants Burberry Preliminary Injunction Against BANEBERRY for Trademark Infringement and Unfair Competition

Burberry Limited, the renowned British luxury fashion house headquartered in London, recently obtained a preliminary injunction from the Suzhou Intermediate People's Court in a trademark infringement and unfair competition dispute. Burberry is famous for its iconic trench coats and the distinctive Burberry check pattern, which has been used as a lining in its trench coats since 1920.

The injunction was issued against four defendants: Xinboli Trading (Shanghai) Co., Ltd., Shentu Clothing (Shanghai) Co., Ltd., Kunshan Development Zone Peng Yazhong Clothing Store, and Peng Yazhong (a natural person). These defendants were ordered to immediately cease using the disputed trademarks "BANEBERRY" and related marks in their business operations.

Under Article 100 of the Civil Procedure Law of the People's Republic of China, courts may grant preservation orders, specific performance, or injunctions if enforcement of a future judgment might be impossible or if damage could result from the opposing party's conduct. The court must consider factors such as the stability of rights, likelihood of infringement, necessity and urgency of preservation, and balance of interests between parties.

In this case, the court recognized Burberry’s trademarks, including the "BURBERRY" name and its check pattern, as well-known among Chinese consumers, having been acknowledged multiple times. The disputed trademarks "BANEBERRY" and associated patterns were found to be highly similar and likely to cause confusion, constituting imitation of Burberry’s well-known marks.

The defendants also used similar logos and promotional claims, such as asserting the brand’s origin from Jermyn Street, England, and emphasizing the "British check" as a classic fashion element. These actions were deemed to amount to unfair competition.

The court noted the rapid expansion of BANEBERRY’s physical stores, which grew to over 40 locations within eighteen months, approaching the number of Burberry’s exclusive stores in China. These stores are primarily situated in major shopping malls and outlets in first- and second-tier Chinese cities. Additionally, BANEBERRY aggressively expanded online presence across platforms like T-Mall, WeChat, and Pinduoduo, intensifying market competition.

The court emphasized that the defendants’ full-scale imitation could easily confuse consumers and damage Burberry’s goodwill and trademark distinctiveness. The timing of the injunction was also critical, coinciding with the Spring Festival holiday, a peak sales period in the clothing industry. Without immediate intervention, Burberry’s market share could be further eroded, and the cost of rights protection would increase.

Burberry’s rights were deemed stable, with several trademarks recognized as well-known. The court found the defendants likely to be infringing and concluded that any potential harm to the defendants from the injunction was manageable. Conversely, failure to grant the injunction could cause irreparable harm to Burberry and consumer confusion.

Evidence presented showed numerous consumer complaints regarding the alleged infringement, supporting the need to maintain fair market order and protect consumer interests.

The court required Burberry to provide corresponding guarantees. It also reserved the right to demand increased guarantees if the injunction caused greater losses to the defendants during enforcement.

Consequently, the court granted Burberry’s application and ordered Xinboli Trading (Shanghai) Co., Ltd. to immediately stop using the "BANEBERRY" trademark and cease production and sales of products bearing identical or similar patterns to Burberry’s registered trademarks.

This injunction represents a significant judicial measure to protect established luxury brands in China’s competitive fashion market and underscores the courts’ willingness to act swiftly against trademark infringement and unfair competition.