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China’s intellectual property landscape is maturing

Foreign companies are finally winning the battle to trademark names — but is the cost worth it?

At first glance, Manolo Blahnik’s recent intellectual property victory in a Chinese court signified a maturing landscape for foreign companies in China.

The shoemaker was a victim of China’s infamous “first to file” trademark system, where local businesspeople beat major labels to the punch, often with farcical results. For example, Zhan Baosheng, a Chinese businessman, registered the Tesla name before Elon Musk entered the Chinese market. Baosheng then tried to take the carmaker to court to defend his claim. The suit was eventually resolved amicably.

The win announced in July by the iconic Spanish shoe designer came after a series of cases in which the country’s courts finally began to rule in favour of international brands. New Balance was awarded damages in a lawsuit against two local companies that imitated its “N” logo last year and in late 2020 former NBA star Michael Jordan was able to stop Chinese sportswear manufacturer Qiaodan Sports using his trademarks.

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