WalMart Inc, founder of Sams Club, recently won an anti-unfair competition lawsuit. According to the Court, defendants "Uncle Sams Trading Company", "Sams Import and Export Company" and "Delord (Tianjin) International Trade Co., Ltd." improperly used the word "Sams" in market operations, which may bring confusion or mislead the public about the source of goods or services. The court determined that the actions of the three defendants constitute unfair competitions, and ordered the defendants to compensate Wal-Mart for economic losses and reasonable expenses for safeguarding rights, totaling more than 300,000 yuan.

In 2016, Delord signed a service agreement with Sams Import and Export Company, stipulating that the e-commerce platform and shopping mall developed by Delord Company will provide Sams Import and Export Company with release service on Internet and commercial promotion services. The words "Sams", "Tianjin Sams", "Sams Safe Food" and "Sams Cross-border Commodities" are used prominently in the online experience store and online promotion platform of Sams Safe Food Store involved in the case to publicize the products it sells.

WalMart Inc, the founder of "Sams Club Store", sued Uncle Sams Trading Company, Sams Import and Export Company and Delord Company for unfair competition, demanded them to stop infringement, eliminate influence and compensate for the losses.

The court held that, under the long-term use and promotion of WalMart Inc., the mark "Sams" has established a specific connection with the "merchandise retail" service provided by Sams Club, which is invested and operated by WalMart Inc., and constitutes a service name with certain influence on merchandise retail service. The improper use of the word "Sams" by the three defendants in the market operation activities easily leads to confusion or misunderstanding of the public on sources of goods or services, thus constituting unfair competition.

On this ground, the court ruled that the three defendants immediately stop using the service name "Sams" on the online and offline platforms of Sams Safe Food Store, and jointly compensate WalMart Inc. for economic losses and reasonable expenses for safeguarding rights of more than 300,000 yuan. The defendants shall also publish an infringement statement in Tonight News Paper to eliminate the impact.