Finding infringement but refusing to grant permanent injunction under Chinese Trademark Law
The Supreme People’s Court (SPC) reversed the decision by the lower courts, finding infringement but refusing to grant permanent injunction. Since the SPC Opinions, Chinese courts have occasionally refused permanent injunction when finding copyright infringement and patent infringement. But there had been no case where injunctive relief was denied upon establishing trademark infringement until the present decision. After the decision of the court of second instance, the right holder requested that the SPC rehear the case, which the SPC allowed. The SPC Opinions makes clear that in denying permanent injunction, courts should order more adequate damages, economic compensation or other appropriate relief in light of all the circumstances to redress the infringement. The SPC found trademark infringement but refused to grant permanent injunction. Permanent injunction would disserve the balance of interests among the trademark owner, the residents and the public.