On 6 May 2020 the Guangzhou IP Court upheld a first-instance judgment rendered by the Guangzhou Nansha People's Court dismissing a trademark infringement claim against parallel imported products.
The appeal court found that:
- the alleged infringing products were genuine products made by the German company OBO. Despite being parallel imports, such products had no substantial difference in terms of visual appearance, product characteristics and quality with those authorised to be distributed on the Chinese market; and
- there is no explicit regulation banning parallel imports in China's legal framework. Without alteration, the alleged infringing products harmed neither the trademark's function to guaranty nor the quality of products. Hence, no trademark infringement could be established.
This decision reaffirms the judicial practice that the import of non-counterfeit goods without the express permission of the trademark owner is not illegal in China, provided that the imported products comply with China's compulsory certification requirements and the importer does not modify, in any way, the imported product.
