The Cimbali Group, through its subsidiary Seattle Espresso Machine Corporation, has won a lawsuit in China regarding unfair competition. As a result, four Chinese companies have been sanctioned by a Court of First Instance in Shanghai.
“The Chinese civil court – the Cimbali Group explains – recognized that the four companies produced and marketed a coffee machine that bore a striking resemblance to the Slayer Espresso model. This particularly with regard to certain characteristic design elements and the packaging”.
This could lead consumers to confuse the original coffee machine with the one produced and marketed by the Chinese counterfeiting companies, thus creating an unfair competitive advantage to the detriment of the Cimbali Group.
The sentence recognized design as relevant
As reported by the Cimbali Group, the Shanghai judges recognized the design of the Slayer machine as relevant according to the Art. 6 of the unfair competition law. They ordered the four Chinese companies to immediately cease production and marketing of machines with designs and packaging that could be confused with those of the Slayer brand. They also ordered to pay damages and legal fees.
A significant result for the protection of intellectual property
“It is very rare – the Cimbali Group says – for a foreign company to obtain a favorable sentence in China against unfair competition from Chinese companies. And although this is a first instance sentence subject to appeal, the decision of the Shanghai Court is particularly significant given the complexity of the Chinese regulatory framework. The recognition of legal protection for a B2B product is the first and currently only successful case in the coffee equipment field.
In recent years, this sector has seen several cases of counterfeiting and therefore the sentence represents an even more significant result in terms of intellectual property protection in the Chinese market. In the sentence, it was recognized that the unique combination of aesthetic elements of the Slayer Espresso machine (including the X-shaped side support and the combination of colors, shapes and structures) represents a distinctive decoration. This is capable of unequivocally identifying the product and its origin”.
Furthermore, the notoriety of the design was also evaluated in the context of general knowledge of the Chinese market. The long period of use and the constant presence of the brand (the Slayer Espresso coffee machine has been introduced in the Chinese market since 2014) have created a strong association in the minds of sector operators, establishing a stable link that identifies the origin of the products.
Strengthening of the competitive position in the Chinese market
Together with the recognition of the distinctive value of design, this sentence further strengthens Slayer’s competitive position in the Chinese market. And it confirms the Cimbali Group’s commitment to defending high quality standards. “The Cimbali Group – the company comments – will continue to invest in the protection of its intellectual property. We are aware that the defense of originality and innovation is an ongoing commitment, essential to guaranteeing quality and reliability to our customers, distributors and partners all over the world”.
