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Recently, the Haidian Court heard a trademark dispute between Saishi Trading (Shanghai) Co., Ltd. (âSaishiâ) and Laizhou Hongyu Arts & Crafts Co., Ltd. (“Hongyu”). This case is the first case in which live streaming sales platforms are recognized as e-commerce platforms, and also the first case to identify the nature of such a platform since the implementation of the “Test Measures for the administration of live streaming marketing â.
Saishi discovered that Hongyu was selling handbags containing the “AGATHA” brand and logo on the Douyin platform, and brought a trademark infringement suit against Hongyu and Bytedance in Beijing Haidian Court. The Beijing Haidian Court considered the following combination of factors: the brand’s designs, the product categories approved for use, the products in question and the logo on the price tag, the fact that the company ‘failed to sub-license the mark to a third party, and Hongyu’s failure to provide sufficient evidence to prove that its behavior complied with PRC Trademark Law. The sale of the goods by Hongyu was found to violate Article 57 (3) of the PRC Trademark Law, constituting trademark infringement.
In addition, Douyin users can engage in internet marketing activities by opening the “commodity window” function, and the live streaming interface on Douyin displays name, photo, price and others. information of the goods in question. The fact that Douyin users can directly check the order information of the goods they purchased in their accounts and they have to click on the cart in the interface to enter the store and complete the transaction when they look live broadcast, the court ruled that Douyin is an e-commerce platform. Bytedance, as operator of Douyin, is therefore an e-commerce platform operator. However, after considering that Bytedance had performed pre-audit, incentive and disposal actions in a timely manner, Bytedance was found to have fulfilled its due diligence duty. Ultimately, the court ruled that Hongyu should compensate Saishi 300,000 RMB for economic loss and 10,598 RMB as reasonable expenses.