The issue of whether manufacturing goods for a foreign market constitutes use of a trade mark for infringement purposes has been a major concern for companies that use original equipment manufacturers (OEMs) in China, and the recent Muji case may indicate a significant shift. In Ryohin Keikaku v TRAB, the Supreme People's Court rejected Ryohin Keikaku's opposition to another company's filing of its Muji mark in Class 24. Ryohin Keikaku's opposition was based on its prior use of the mark, which was limited to use on OEM manufacturing for export. The Court rejected it, saying that OEM manufacturing for export does not establish the required prior use and level of influence. Though the Court avoided the issue of whether the manufacturing constitutes use as regards infringement, it could have ramifications for those cases.
This case was selected as one of Managing IP’s Cases of the Year for 2012.
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