According to the surging news, Xiaomi Technology Co., Ltd. v. Shenzhen Xiaomi Trading Co., Ltd. (hereinafter referred to as Shenzhen Xiaomi) for trademark infringement and unfair competition dispute fell in the first instance of the Shenzhen Intermediate Court.
The court held that Xiaomi Technology applied for and registered the Word Trademark No. 8228211 "Xiaomi" as early as April 2011, and carried out a lot of publicity and wide use of the trademark.
Shenzhen Xiaomi Trading Co., Ltd. used names such as "Xiaomi Digital Franchise Store" in Tmall stores without authorization, involving 182 types of unfair competition products including chargers, power banks, fans, massagers and so on.
In addition, the words "Xiaomi Digital Franchise Store", "Xiaomi Franchise Store" and "Xiaomi" are marked in the sales titles of 114 models of goods, which have actually formed infringement and infringed the trademark rights of Xiaomi.
Due to the involvement of e-commerce platform stores, after receiving the complaint from Xiaomi Technology, the Shenzhen Intermediate Court sent a letter to Tmall to retrieve the relevant transaction data of Shenzhen Xiaomi Trading Co., Ltd., and after analyzing the three years from February 2, 2019 to January 31, 2021, the total sales of 114 goods suspected of infringing Xiaomi's trademark rights totaled 135 million yuan, and the total sales of 182 goods suspected of unfair competition totaled 154 million yuan.
After synthesizing the general profit data of related industries, the Shenzhen Intermediate Court determined that the gross profit margin of Shenzhen Xiaomi Trading Co., Ltd. was 30.78%.
After further calculation, the Shenzhen Intermediate Court found that Shenzhen Xiaomi Trading Co., Ltd. made a profit of 47 million yuan due to infringement and unfair competition.
Xiaomi won the lawsuit, Shenzhen Xiaomi Trading Co., Ltd. lost the lawsuit, according to the principle, Shenzhen Xiaomi Trading Co., Ltd. needs to compensate Xiaomi Technology for infringement and unfair competition, that is, 47 million yuan.
But the riot operation came, and the claim object of Xiaomi Technology Co., Ltd. suing Shenzhen Xiaomi Trading Co., Ltd. was 30 million yuan.
Therefore, the Shenzhen Intermediate Court fully supported Xiaomi Technology's claim, and Shenzhen Xiaomi Trading Co., Ltd. compensated Xiaomi Technology for 30 million yuan.
A funny scene appeared, Shenzhen Xiaomi Trading Co., Ltd. de facto infringement and unfair competition profit of 47 million yuan, and now lost the lawsuit, only need to compensate 30 million yuan, net profit of 17 million yuan.
At present, it is not known what standard the claim amount of 30 million yuan was determined according to in the stage of litigation fixed evidence, and it is likely that Xiaomi used its own profit margin as the benchmark to calculate the amount of unjust enrichment of Shenzhen Xiaomi Trading Co., Ltd.
The gross profit margin of the copycat infringing products can be as high as 30.78%, which is estimated to be unexpected by Xiaomi and shocked Xiaomi for a whole year.
But in any case, the current judgment has come down and has become an established fact, and Xiaomi has directly lost 17 million yuan.
Xiaomi won the lawsuit, but it did not win completely, and Shenzhen Xiaomi Trading Co., Ltd. lost the lawsuit, but it did not lose completely.