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22 January 2020PatentsEdward Pearcey

Lego claims final IP victory over Lepin in China

Lego has won a substantial Chinese copyright judgement after a court upheld all of the first-instance rulings on 18 existing infringement claims, originally handed down in favour of the Danish toymaker against a Chinese rival’s ‘Lepin’ trademark.

A statement from Lego revealed that the company had now received “favourable final decisions” from the Guangzhou IP Court in China, and this “marks a significant legal victory for the Lego Group to combat against imitators.”

Shantou and its affiliates (makers of the ‘Lepin’ products) must now pay Lego a total of RMB 4.7 million ($680,000) in damages, cease all forms of infringement immediately, and make a public apology on the websites of China Toy and Juvenile Products Association and Guangdong Toy Association.

The court decided to uphold all of the first-instance rulings, and one unfair competition case, which were handed down Lego’s favour in November 2018. The decisions are final and have entered into legal effect immediately upon issuance, said Lego in a statement.

Lepin’s products are almost identical to existing Lego products, and sold in China at a much-reduced price. As such, the “Shantou Meizhi Model Company (a Chinese toy manufacturer), and its affiliates, are being accounted for the illegal manufacturing and selling of the said products,” said Lego’s statement.

Robin Smith, vice president and general counsel, China and Asia Pacific, Lego Group, said: “IP rights are very important to the Lego Group, and we constantly strive to enforce and protect our Lego trademarks, copyrights, designs and patents.”

“We are pleased with the court’s final decision and appreciate the efforts from all stakeholders in this case,” added Smith. “It also shows the Chinese authorities’ commitment in creating a favourable business environment for multinational companies.”

Lego will follow up with the court on the collection of damages granted and enforcement of public apologies, its statement read, and will also continue to support Shanghai police and procuratorate in any ongoing criminal cases.

Lego has been in conflict with Lepin for some time. In March 2019, the UK Intellectual Property Office (UKIPO) handed a victory to Lego after it invalidated the ‘Lepin’ trademark. In its decision, the IPO found that there was a likelihood of confusion between the marks.

Although there is no protected colour element in Lego’s mark, the ‘Lepin’ logo uses the “the same colours as the applicant’s mark in a highly similar structural way”, the decision said. The IPO found that there was likely to be “indirect confusion” among consumers.

In October 2017, Lego won a case at Shantou Intermediate Court against Bela, a Chinese toy manufacturer, for infringing Lego copyrights.

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