SHANGHAI: The Switzerland-based retailer Foxtown Factory Store won two lawsuits yesterday against its Chinese competitor, Foxtown China.

In the first case, the Shanghai No. 1 Intermediate People's Court ordered Foxtown China to stop using its logo a winking fox appearing with the word "Foxtown" which resembles the Swiss Foxtown's trademark. The Chinese company has also been ordered to publish a public apology on a local newspaper and pay 1 euro to the Swiss outfit in compensation.

In the second case, the court ruled that Foxtown China had engaged in unfair competition by relating itself inappropriately to the Swiss retailer in its advertising. However, the court rejected a request from the latter for 500,000 yuan (US$62,500) in compensation.

According to the verdict, Silvio Tarchini, the founder of Foxtown Factory Store, had failed to prove that his company had suffered any losses as a result of the defendant's actions.

Sha Haitao, the lawyer representing the Swiss company, told China Daily he was pleased with the verdicts and would discuss with Tarchini how to further protect his trademark in China.

Meanwhile, Foxtown China has altered its logo by fattening up its fox and dropping the word "Foxtown". However, the company's shopping centres are still called Huli Cheng, a Chinese translation that literally means "fox town." Foxtown is still the company's name.

Zhu Miaochun, the lawyer representing Foxtown China, said his client would probably file appeals in both cases.

"Foxtown China has used the Foxtown trademark since 2003, and the National Copyright Administration is still reviewing the application. It is too early to say who owns the trademark now," Zhu said.

"How can a company unfairly compete with an individual?" he added.

Tarchini filed both of the suits in his own name.

Zhu said Lu Qiang, the owner of the Chinese company, had never heard of the Swiss retailer when he founded his company in 2003. He added that the dispute between the two sides was not finished.

Tarchini opened his first factory store, which sells discounted name-brand goods, in the 1990s and successfully registered the trademark in 1995. There are currently three Foxtown stores in Switzerland and one in Shanghai, which opened in June in the city's suburban Songjiang District.

Lu, the founder of the Foxtown China, established his company in 2003 and applied for a trademark that is similar to that of the Swiss company. Lu opened his second store last year, in Jinan, Shandong Province.

"In 2005, when Mr Tarchini was planning to open a store in Shanghai, he found someone had opened a store using a similar logo and name and was applying the logo as a trademark," Sha said.

"Mr Tarchini has appealed to the National Copyright Administration for infringement and filed the two suits."

Source: China Daily