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szdaily -> Shenzhen -> 
SZ biscuit maker ordered to pay damages
    2021-03-05  08:53    Shenzhen Daily

THE Guangdong Provincial Higher People’s Court has ordered a Shenzhen-based food company to pay 500,000 yuan (US$77,400) in damages over claims related to unfair competition, Shenzhen Economic Daily reported.

The court issued a portfolio of legal cases recently that may serve as references in handling lawsuits that involve cross-border investment, tourism, housing transactions, equity transfer, corporate deadlock, unfair competition, inheritance, arbitration and judicial review and enforcement in the Guangdong-Hong Kong-Macao Greater Bay Area.

Among the cases, the lawsuit between the Hong Kong-based Jenny Bakery Co. Ltd. and Shenzhen Jenny Food Co. Ltd. has drawn much attention, as it involved the determination of reputation of Hong Kong products on the mainland.

Jenny Bakery filed a lawsuit against Shenzhen Jenny Food, claiming that the latter had made false advertisements by exploiting the former’s reputation and sold a large number of cookies through physical stores and a store on an e-commerce platform, which misled consumers and constituted unfair competition.

The Shenzhen Intermediate People’s Court held in the first instance that Jenny Bakery failed to prove that its products were known to the public on the mainland, and its proof that the goods involved were well-known goods was insufficient. The court ruled to reject the company’s appeal.

In a second instance, the Guangdong Provincial Higher People’s Court held that according to the notary certificates and media reports submitted by Jenny Bakery, the popularity of its products is not limited to the Hong Kong Special Administrative Region, but known to mainland consumers.

The court held that Shenzhen Jenny Food, as a business operator in the same industry as Jenny Bakery, is unlikely not to know that the latter’s products involved in the case are well-known in Hong Kong and Guangdong.

Shenzhen Jenny Food was also alleged to have used the original packaging of Jenny Bakery without authorization and exploited the latter’s good reputation on Chinese social media platform Xiaohongshu.

The court rescinded the first-instance judgment and ordered Shenzhen Jenny Food to immediately stop the unfair competition.

(Zhang Yu)

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