Liu Shen represented a catering industry client in a string of unfair competition disputes relating to restaurant decoration. With robust non-infringement defenses, the firm secured final and full victories in all seven unfair competition cases for the defendant.
Case Background
The plaintiff, Qingdao Anmou Catering Co., Ltd., and the defendant, Shenzhen Yanmou Catering Management Co., Ltd., are both well-known Korean barbecue restaurant operators. The plaintiff alleged that the defendant’s stores had extensively copied its commercial elements, including logos, storefronts, interior wall decorations, as well as dining tables and chairs. The plaintiff subsequently filed seven unfair competition lawsuits against the defendant’s franchise outlets in multiple district courts of Shenzhen, claiming nearly RMB 10 million in total damages. Engaged by the defendant, the Liu Shen team conducted rigorous legal research and comprehensive evidence collection to formulate a solid non-infringement defense. Following more than two years of litigation proceedings, the firm obtained favorable final judgments covering first instance, second instance and retrial stages across all seven cases. The courts at all levels held that the decoration asserted by the plaintiff did not qualify as commercially influential decoration protected under the Anti-Unfair Competition Law of the People’s Republic of China, and dismissed all claims brought by the plaintiff.
Case Highlights
1. Conflict Between Anti-Unfair Competition Law and Trademark Law
The Liu Shen team identified that the plaintiff’s core trademark had been rejected by the National Intellectual Property Administration (CNIPA) on the grounds of violating the Trademark Law, and was legally prohibited from trademark use. Nevertheless, the plaintiff continuously deployed the denied mark as a prominent decorative element within its restaurant premises. Based on applicable legal provisions, the team argued that the alleged market influence of the plaintiff’s decoration was derived from an unregistered mark with adverse social impact. Given that the core mark had been explicitly barred from trademark usage, the corresponding decorative layout should not be entitled to legal protection.
2. Distinctiveness of Disputed Decoration
The plaintiff claimed that notwithstanding the core trademark, its restaurant decoration retained unique Korean stylistic characteristics — such as Korean-style furniture and wall posters — constituting an integrated and protectable decorative scheme. The Liu Shen team successfully proved that the majority of the Korean-style decorative features cited by the plaintiff had already existed in prior public designs. A mere combination of commonplace decorative elements cannot be exclusively monopolized and protected as distinctive commercial decoration.
Typical Significance
The factual findings and legal arguments submitted by the Liu Shen team were fully endorsed by multiple district courts in Shenzhen, the Shenzhen Intermediate People’s Court, and the Guangdong Higher People’s Court. All judicial bodies unanimously ruled that the plaintiff’s decoration was ineligible for protection under the Anti-Unfair Competition Law. This body of cases constitutes a landmark judicial precedent in China. It clarifies an essential judicial criterion: where commercial decoration contains a prominently displayed mark with adverse social impact, such decoration shall not be recognized as commercially influential decoration eligible for anti-unfair competition protection. In particular, the judgments deliver valuable judicial guidance concerning how problematic trademarks affect the protectability of in-store service decoration, offering high reference value for future judicial practice.
The case was handled by attorneys ZHENG Peng, CHENG Chi, SHI Teng, LIU Zhijie and YAN Jiajia. The team meticulously untangled complex factual circumstances and analyzed substantial evidentiary materials. Leveraging profound legal expertise and diligent work ethic, the team effectively safeguarded the client’s legitimate interests and earned high recognition from the client for its efficient and sophisticated legal services. The litigation team of Liu Shen will continue to deliver premium intellectual property services and reliably protect the lawful rights and interests of clients.
