How to protect your rights due to random prices on the Xianyu platform?

Briefing

Brand owner Company A, a registered trademark product was sold on the Xianyu platform. The price was very low, which had a negative impact on normal market sales. The brand owner complained many times to no avail and could not clear the sales on the platform.

Case analysis

First of all, we must make it clear that the Xianyu platform is a second-hand product transfer platform. Usually, the transfer of second-hand goods on this platform is second-hand goods. The transfer of second-hand goods is not prohibited by Chinese law.

However, the store that Company A is concerned about is selling brand-new Company A products at low prices for a long time in the name of second-hand product transfer, and during the sales process, the registered trademark of the product is used as a trade name. In my opinion, the behavior of the Xianyu store is the use of registered trademarks in commercial activities, which constitutes an infringement of the exclusive rights of registered trademarks.

implementation plan

Our company teamed up with professional law firms to fix the evidence on the sales pages of these infringing stores that use registered trademarks as product names, and took screenshots of the comments in the product comment area to retain evidence. Secondly, a lawsuit was filed with the People's Court where the defendant was located, requiring the store to stop infringing on the exclusive rights of the registered trademark and compensate for losses.

After the judge provided relevant legal interpretations to the infringing store operators, the operators realized that their actions were illegal, proactively admitted their mistakes, promised not to use the trademarks again, and stopped selling branded products.

Kind tips

The Xianyu platform must be commercially sold for a long time before it can constitute trademark use; otherwise, the simple transfer of second-hand products does not constitute infringement.

*The legal terms used in the case are based on the following

Article 48 of the Trademark Law: The use of trademarks as mentioned in this law refers to...the use of trademarks in advertising, exhibitions and other commercial activities to identify the source of goods.

Article 57 of the Trademark Law: Anyone who commits any of the following acts shall infringe upon the exclusive right to use a registered trademark: (1) Using the same trademark as the registered trademark on the same product without the permission of the trademark registrant;…