Photo: CNBC

Huawei Technologies Co., Ltd. has recently emerged victorious in a legal battle concerning the protection of its trademark rights, according to news released last week. 

An online company was found selling bluetooth headphones bearing the "Huawei" brand without authorization, resulting in sales exceeding 9.37 million RMB. In response, Huawei took legal action, alleging trademark infringement and unfair competition against the company. The case was brought before the Longhua District Court in Shenzhen, which ruled in favor of Huawei, ordering the defendant company to pay punitive damages totaling over 1.9 million RMB, representing twice the profit derived from the unauthorized sales.

Huawei holds exclusive rights to several highly recognizable trademarks, including "Huawei" and "华为". Despite lacking authorization from Huawei, the defendant marketed and sold bluetooth headphones adorned with branding that included the above trademarks. Additionally, promotional materials falsely suggested that these headphones were official Huawei products. However, upon investigation, it was revealed that these headphones were not genuine Huawei items.

During the trial proceedings, the defendant encountered difficulties in substantiating its profits from the unauthorized bluetooth headphone sales due to its failure to provide necessary financial records and vouchers. However, both the defendant and Huawei presented evidence from other industry players to support their respective claims regarding profit margins. 

Ultimately, the court determined that the defendant's actions constituted trademark infringement and unfair competition, as they infringed upon Huawei's trademark rights and misled consumers.

Given the severity of the infringement and the defendant's persistent disregard for Huawei's complaints, the court deemed it necessary to impose punitive damages. Utilizing sales records and industry profit margins, the court calculated the damages owed and mandated compensation of 1,961,609.44 RMB.