Hong Kong SAR issues landmark cross-border injunction
Managing IP is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Hong Kong SAR issues landmark cross-border injunction

hong-kong.jpeg

The Hong Kong High Court has handed down an injunction preventing passing off in mainland China, in what has been described as a first-of-its-kind decision

The Hong Kong High Court has issued an order granting a landmark preliminary injunction in favour of US-based nutrition supplement brand ChildLife and restraining passing off in mainland China via e-commerce platforms.

It is the first-ever preliminary injunction issued in Hong Kong SAR concerning passing-off activity in China. The court, in a ruling last Wednesday, October 20, took into consideration torts committed by the defendants outside of Hong Kong SAR and restrained them from passing off in mainland China.

The decision holds major significance as it lays the ground for parties to use Hong Kong SAR as a venue for pursuing infringement and passing off actions against suspected violations taking place in mainland China.

ChildLife, owned by life sciences company Biozeal, took action against an ex-distributor who was operating certain flagship stores in e-commerce platforms through its Hong Kong SAR-registered affiliates and targeting customers in mainland China. This was despite a distribution agreement between the parties being terminated.

According to ChildLife, the ex-distributor had not only refused to transfer the flagship stores to ChildLife after the agreement had ended, but continued to use the brand owner’s marks and device to market its new products.

While deciding jurisdiction, the court noted that the double actionability rule – that an action for an alleged tort committed in a foreign jurisdiction can succeed in a domestic court only if it would be actionable under the laws of both jurisdictions – is still valid in Hong Kong SAR.

The controversial double actionability rule has been abolished in the UK, where it originated, and many other countries worldwide.  

ChildLife was represented by Baker McKenzie. Partner at the firm Andrew Sim said: “This judgment is most significant, as it sets a new precedent for similar cases in the future.”

The defendants have appealed to the Hong Kong Court of Appeal.

more from across site and ros bottom lb

More from across our site

EMEA research now open
Practitioners analyse a survey on how law firms prove value to their clients and reflect on why the concept can be hard to pin down
The winner of Managing IP’s Life Achievement Award discusses 50 years in IP law and how even he can’t avoid imposter syndrome
Saya Choudhary of Singh & Singh explains how her team navigated nine years of litigation to secure record damages of $29 million and the lessons learned along the way
The full list of finalists has been revealed and the winners will be presented on June 20 at the Metropolitan Club in New York
A team of IP and media law specialists has joined from SKW Schwarz alongside a former counsel at Sky
The Irish government has delayed a planned referendum on whether Ireland should join the Unified Patent Court, prompting concern about when a vote may take place
With more than 250 winners recognised during the ceremony, there are many reasons to be positive about the health of the IP industry in EMEA
Practitioners say the USPTO’s latest guidance has some helpful clarifications and is a good reminder of the importance of checking AI outputs
Susanne Schmidt discusses why trademarks are more than 'just a name' and why she would choose green farming as an alternative career
Gift this article