One of the various ways of imitating well-known brands is to take advantage of the law vacancy between the legal systems of the Chinese mainland and Hong Kong by registering mainland enterprises' famous names or trademarks as their own corporation names in Hong Kong, and reuse the names in mainland markets.
Many well-known brand owners have suffered from these common unfair competition behaviors. Power Dekor, a leading laminate floor provider in China, also encountered such embarrassment. However, the recent ruling from Hong Kong High Court dispelled Power Dekor’s worry over this issue.
In early 2006, based on complaints from consumers and Power Dekor’s investigation, it was found out that Jiangxi Yanjiang Industry Co., Ltd. (Yanjiang Industry) distributed “德尔菲 (Derfei in English)” floor in the name of authorized product supervisor of so-called SAINT SHINE INT’L (HK) LIMITED (whose Chinese pronunciation and translation is identical to that of Power Dekor) and told consumers that 德尔菲 is one of Power Dekor floor series. Power Dekor subsequently entrusted Beijing Unitalen Attorney at Law to take an in-depth investigation to the alleged infringement.
In July 2006, authorized by Power Dekor Group, Beijing Unitalen Attorney at Law appointed lawyer Gui QingKai to file the case to Nanchang Municipal Administration for Industry and Commerce. At the same time, Power Dekor took the lawyer’s advise to institute an action against Saint Shine Int’l (HK) Limited at Hong Kong High Court, asking the defendant to withdraw the registration of Saint Shine Int’l (HK) Limited and圣象国际（香港）有限公司as corporate name or trade name at Companies Registry, and to stop using 圣象国际（香港）有限公司 (including both Chinese and English name) and/or any trademark identical or similar to “圣象地板 (Power Dekor in Chinese Simplified)” and “聖象地板(Power Dekor in Chinese Traditional)” , which were registered by the plaintiff in Hong Kong, to stop producing and/or selling constructional materials, or assisting, causing or authorizing others’ foresaid activities.
Recently, Hong Kong High Court has formally concluded a decision in favor of Power Dekor.