Market Overview

'Facebook' Beverages In China? Not Anymore

Share:
'Facebook' Beverages In China? Not Anymore
Related FB
Analyst Says Social Media Space Is Saturated, Sees Snapchat As 'Total Junk'
Facebook Wants You To Spend More Time On Facebook By Watching Baseball
Tracking Stephen Mandel's Lone Pine Capital Portfolio - Q4 2016 Update (Seeking Alpha)
Related AAPL
The Market In 5 Minutes
Warren Buffett Doubles Apple Stake, Cheers iPhone Maker's Stickiness
Buffett buys more Apple (Seeking Alpha)

Facebook Inc (NASDAQ: FB) has scored a rare victory in a Chinese trademark dispute with a local Chinese company that registered and used the trademark “face book” to sell food and beverages. The Zhujiang Beverage Factory initially gained approval to continue to use the trademark back in 2014, but the Beijing Higher People’s Court has now revoked the approval and ruled that the company’s “face book” label is an obvious trademark infringement.

Zhujiang Beverage marketing manager Liu Hongqun argued that “face book,” or “lian shu,” refers to a type of intricately-designed mask that is common in traditional Chinese operas, but the court wasn’t buying it.

Related Link: China Backpedaling On Fintech?

Surprisingly, under Chinese law, global companies must prove that their trademarks are popular in China itself before use of their trademark is considered illegal. While access to Facebook has been blocked in China since 2009, the court ruled that it remains a popular brand there.

Many mainland residents illegally gain access to banned sites like Facebook and Twitter Inc (NYSE: TWTR) via the use of virtual private networks (VPNs).

Apple Inc. (NASDAQ: AAPL) wasn’t quite so lucky in another recent trademark lawsuit in China. The company lost its case against a Chinese leather-making company that uses the name “IPHONE” on its products.

Disclosure: The author holds no position in the stocks mentioned.

Posted-In: Beijing Higher People's Court China face bookNews Emerging Markets Legal Markets Tech Best of Benzinga

 

Related Articles (AAPL + FB)

View Comments and Join the Discussion!