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Brand Source > “Deer” Battle Highlights Importance of Brand Legal Check
08.19.2009
“Deer” Battle Highlights Importance of Brand Legal Check

NineDeerKing, also known as Worthy, is a registered menswear brand based in Jiangsu Province. In November 2008, the Trademark Appeal Board (TAB) repealed the brand for brand plagiarism, citing its brand name and brand identity are too similar to King Deer (鹿王), an Inner-Mongolia-based apparel brand specialized in cashmere sweaters.

Ironically, TAB is the committee that had originally approved the NineDeerKing brand in March 2002. NineDeerKing sued TAB after the repeal in 2008, but the court ruled in favor of TAB in April. NineDeerKing appealed again, and the second round of legal proceedings are still going on.

The timeline is the key consideration in this “deer” brands battle. King Deer applied to register its brand name and brand identity to TAB 13 years ago. The brand was granted in 1999 and in the same year became a “Chinese Well-known Mark” (中国驰名商标), a legal concept established by the State Administration for Industry and Commerce aiming to prevent brand plagiarism. One year later, NineDeerKing applied for registration with TAB, which approved its brand in March 2002.

Since its approval in 2002, NineDeerKing has invested significant amounts of money to build its brand. Brand promotion, including signing Chinese actor Li Yapeng as its spokesperson, has cost the company RMB100 million (approx. US$14.6 million). But the efforts have paid off. Some media are calling NineDeerKing “China’s Chanel menswear”. A court ruled NineDeerKing as “Chinese Well-known Mark” in 2007. However, NineDeerKing is now facing difficulty due to the alleged brand plagiarism charged by another “Chinese Well-known Mark”.

Any registered brand can request TAB to repeal another brand in the same industry on the charge of plagiarism within a five-year period since the latter brand’s approbation date. King Deer did so in June 2005, which led to the repeal of NineDeerKing brand.

It is possible that NineDeerKing’s dilemma could have been prevented if they had undergone a more thorough brand legal check. This is because King Deer had become a “Chinese Well-known Mark” one year before NineDeerKing applied to register its brand. In China, where trademark law is not highly developed, it may be safest to operate under a brand name only after its five-year appeal period has passed. However, this option is not feasible for most companies wanting to build their brands in China.

It looks like the court will ultimately decide the winner of this battle between Deer Kings. Yet for other companies in China, the story highlights the importance of careful brand naming and comprehensive legal checks in the process of building brand equity.

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