According to reports from various Thai media outlets, Tai Luckin Coffee (formerly Thai Rui Xin or Royal 50R Group) officially filed a lawsuit on the morning of the 19th, seeking a court order for China's Luckin Coffee to pay economic damages amounting to a staggering 10 billion Thai Baht (approximately 2 billion USD). The court has accepted the case, encompassing aspects of trademark registration and infringement accusations.
In documents submitted to the court, the 50R Group stated that it legally registered the Luckin trademark in 2020, operating coffee shops that lawfully sold tea and coffee beverages. However, China's Luckin Coffee later filed a lawsuit with the Central Intellectual Property and International Trade Court, accusing the 50R Group of maliciously registering the trademark, resulting in an initial court ruling against the defendant. Despite this, the 50R Group believed the judgment was unfair and successfully filed a counterclaim on December 1st, securing a victory.
The complaint highlights that, before a final court decision, China's Luckin Coffee repeatedly forced the plaintiff to cease using the trademark and even forcibly seized their property, causing significant economic losses. The 50R Group is now seeking a court order for China's Luckin Coffee to pay a total of 10 billion Thai Baht in compensation.
Tai Luckin Coffee, a diversified Thai local company engaged in retail, new energy, tourism, real estate, and catering, with backgrounds tied to the Thai royal family and military government. Its subsidiary, Thailand Luckin Coffee Co., Ltd., has legally registered the Luckin brand trademark with the Thai Ministry of Commerce and has successfully operated over a dozen Luckin Coffee shops in Thailand.
This intellectual property dispute underscores the urgency for businesses to prioritize brand protection in overseas markets. The court ultimately sided with Thailand, considering the local registration and use of the Thai Luckin trademark predated China's Luckin, aligning with the "first-to-file" principle.
Intellectual Property Agencies Caution Businesses to Exercise Caution in International Ventures
For intellectual property agencies, this case highlights once again the critical importance of intellectual property in global business competition. Businesses venturing abroad must formulate a cautious trademark registration strategy, promptly establish an overseas trademark layout, and build a comprehensive trademark protection system to effectively address potential disputes.
The registration layout of overseas trademarks, market monitoring, and the preservation of evidence in daily operations are crucial steps for companies to safeguard intellectual property rights. In-depth research on international rules and trademark laws and regulations in various countries aids in promptly identifying potential issues and resolving disputes.
In situations where trademarks are infringed or wrongfully registered, companies should take proactive measures. This may involve legal means to uphold rights or considering reasonable investment for purchasing or negotiating a resolution. Businesses need to fully understand local regulations and systems, formulating solutions that are most favorable for overall development.
China's Luckin Coffee's defeat in the Thai market and the prospect of substantial compensation serve as a reminder to businesses expanding internationally to prioritize intellectual property protection. Adequate preparation, including trademark registration, monitoring, and rights protection, can help avoid significant losses.
In August 2022, Luckin Coffee issued a statement saying, "It's a Thai fake! Luckin Coffee has not opened stores in Thailand. The Luckin stores in Thailand are counterfeit."
Netizens Discuss: How Important Are Intellectual Property Rights?
The revelation of Luckin Coffee taking action against counterfeit stores in Thailand sparked discussions among netizens. Insiders revealed that despite Thai Luckin being a so-called "counterfeit store," its preemptive trademark registration in Thailand, in compliance with local laws, allowed for normal business operations. This might be a key factor in China's Luckin Coffee losing the case. The recent loss by China's Luckin Coffee and the looming substantial compensation underscore the importance of intellectual property rights for Chinese companies in overseas markets. It serves as a stark reminder to thoroughly understand local trademark regulations and ensure robust brand protection and rights enforcement preparations. This is an essential step to prevent unnecessary losses.
（The picture comes from the Internet. If there is any infringement, please contact us to delete it.）