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On April 16, 2021, Guangzhou Intellectual Property Court made a final judgment, ruling that Guangzhou Dongfang Keyuan Import & Export Co., Ltd. (Appellant) constituted legal parallel import.
Unable to determine whether a batch of beer with the logo "FRANZISKANER" declared for import by Dongfang Keyuan infringed the trademark right of its trademark owner "Franziskaner Company", Zhuhai Customs sent a letter of inquiry to Franziskaner on February 22, 2019.
After Frankiskana Company received the notice, Budweiser Investment (China) Co., Ltd. filed a lawsuit to the court of first instance on March 7, 2019 based on the document Commercial Logo License and Rights Protection Authorization issued by trademark registrant Frankiskana Company. After trial, the court of first instance supported Budweiser's appeal reasons, and ruled that Dongfang Keyuan Company infringed Budweiser's trademark rights. The court ordered Dongfang Keyuan to immediately stop the import, destroy the infringing goods, and compensate economic losses and reasonable rights protection expenses totaling 205,180 yuan.
Dongfang Keyuan Company refused to accept the first-instance judgment and filed an appeal. Guangzhou Intellectual Property Court, the court of second instance, changed its judgment after trial. The court deemed that the parallel import of beer by Dongfang Keyuan Company does not infringe Budweiser’s trademark rights, and its parallel import conforms to China's judicial policy. The reason is as follows: the beer involved is a genuine parallel import that has a legal source and has gone through the import declaration formalities according to law. The beer is manufactured by the trademark owner Frankiskana Company, and has obtained the legal authorization of Anheuser-Bush InBev NV/SA, the parent company of the trademark owner, and its holding enterprises. Therefore, it is a legally imported product in parallel import trade and does not constitute trademark infringement.