US footwear manufacturer New Balance Atheletic Shoe recently was sued in Guangzhou, China, for its Chinese translation infringing a trademark "新百伦" that belongs to a local male shoe brand.
The Guangzhou Municipal Intermediate People's Court verdicted that New Balance improperly used the mark and compensated RMB98 million (US$16 million), which is the highest since the establishment of the court. Whether New Balance is going to appeal is not yet known.
The Guangzhou-based 新百伦 brand owner whose surname is Zhou said he applied for the "百伦" trademark in 1996, and "新百伦" in 2001, but the US company used the "新百伦New Balance" mark for all advertising and marketing activities in China, which damaged his brand reputation.
The literal translation of New Balance is "新平衡", but "新百伦" is a translated name that it was originally used when entering the Chinese market and has been widely known in the country.
