Founded in 1941, the Champagne Committee is an institution established in accordance with French law to manage the common interests of fruit farmers and wine merchants in Champagne District. The Champagne Committee enjoys the collective trademarks No.11127266 "Champagne" and No.11127267 "Champagne" geographical indications (referred to as two registered trademarks) on Class 33 (wine products). 

The Champagne Committee believes that perfume products produced by Guangzhou Xuelei Cosmetics Co., Ltd. (hereinafter referred to as Guangzhou Xuelei Company) and sold by Beijing Yalishadi Cosmetics Co., Ltd. (hereinafter referred to as Beijing Yalishadi Company) are marked with "Champagne Life" and "香槟人生" logos, which constitutes an imitation of the well-known trademarks of Champagne Committee (the above two mentioned registered trademarks have been widely known among the relevant public in China after long-term publicity and use). This kind of usage will weaken the significance of well-known trademarks, dilute the corresponding relationship between Champagne Committee's well-known trademarks and wine products, and constitute trademark infringement. 

Guangzhou Xuelei Company made the non-infringement arguments from the perspective of non-trademark use, proper use, non-well-known trademarks cannot be protected across categories, and the alleged infringing logo does not imitate the two registered trademark logos, while Beijing Yalishadi Company defended that the alleged infringing goods are legally obtained by itself. 

In response to Xuelei Company's non-infringement defense, Beijing Intellectual Property Court held that: 

(I) Guangzhou Xuelei Company directly attached "香槟人生" and "Champagne Life" to the bottle and packaging box of the alleged infringing goods, which was sufficient to play a role in identifying the source of the goods, so its non-trademark usage defense was not established; 

(II) The existing evidence cannot prove that "Champagne" has become the legal or conventional common name of "sparkling wine" goods, so the defense of its proper use is not established;

(III) The alleged infringing logos "香槟人生" and "Champagne Life" completely contain two registered trademark logos "香槟" and "Champagne", so the defense of non-infringement, namely, the alleged infringing logo does not imitate the well-known trademark logo, is not established.

In view of the defense of legal source by Beijing Yalishadi Company, Beijing Intellectual Property Court held that Yalishadi Company could prove that the alleged infringing goods it sold were legally obtained by itself and explained that the provider was Guangzhou Xuelei Company, so it was not legally responsible, but it could not be exempted from the responsibility of stopping the infringement and paying reasonable expenses for safeguarding rights.

In the end, Beijing Intellectual Property Court ruled that Guangzhou Xuelei Company shall stop producing the alleged infringing products and compensated the Champagne Committee for economic losses and reasonable expenses, totaling 210,000 yuan, and ordered Beijing Yalishadi Company to stop selling the alleged infringing products and pay reasonable expenses of 10,000 yuan to the Champagne Committee.