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Casio wins unfair competition lawsuit in China

26 February 2025

Casio wins unfair competition lawsuit in China

CASIO stalls, via street viewer, Wikimedia Commons

Watch brand Casio has won a landmark unfair competition lawsuit in China. According to the High People’s Court of Guangdong Province, the use of Casio’s distinctive GA-110 watch design by Guangzhou Teyuan Watch Industry and Shenzhen Tasgo Watch was an act of unfair competition that could confuse consumers.

The court’s decision affirmed that the design features of the GA-110 watch are distinctive and non-functional and have acquired significant consumer recognition, associating them strongly with the Casio brand. The defendants’ use of a nearly identical design was therefore deemed unfair competition, diluting the distinctiveness of Casio’s trade dress and harming its business interests.

As a result, the court ordered the defendants to pay Casio Rmb3 million (US$413,500) in damages, calculated based on a combination of the impact of their infringing actions, malicious intent, and sales record. The court, meanwhile, rejected the defendants’ argument to exclude sales data inflated by ‘brushing’ – the practice of creating fake orders to manipulate online rankings – from the damage’s calculation, highlighting that businesses will be held accountable for such deceptive practices.

Landy Jiang | Managing Partner @ Lusheng Law Firm, Beijing

Landy Jiang, a managing partner and co-head of dispute resolution at Lusheng Law Firm in Beijing, said: “This victory underscores the strength of trade dress protection in China, even after design patents expire. It demonstrates the court’s commitment to safeguarding intellectual property rights, combatting unfair competition and protecting genuine, iconic brands, particularly in the online marketplace. It also highlights China’s determination to target counterfeiters and copycats, sending a clear message to businesses operating in this space.”

She added: “This decision will serve as a valuable precedent for brand owners adding an additional layer of defence for those seeking to protect their unique product designs and will help shoppers from copycats moving forward.”

The victory represents the first case in which relief under China’s Anti-Unfair Competition Law has been granted to Casio for a product design with expired design rights. It sets an

important precedent for the industry, highlighting the tools businesses have at their disposal to protect their brands even after design patents expire.

Sales evidence has been extracted from several online platforms, including 1688 and Tmall where the defendants sold infringing watches. With the favourable judgment, Casio may also be able to extend protection on online platforms, as online platforms are increasingly willing to support unfair competition claims to clamp down on this practice on their sites.

- Excel V. Dyquiangco


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