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China Firm Loses To Facebook Over Trade Name Case

By Catherin Lue , May 11, 2016 04:40 AM EDT
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Although banned in China, the widely used social media network has come out on top following its latest challenge over the trade name issue recently.

Facebook reportedly filed suit versus a Chinese company after the executives found out that a different "face book" is in the works of becoming another trademark, says BBC News. The Beijing court ultimately favored the ruling in behalf of Facebook, saying the Chinese company allegedly went beyond "moral principles."

The court continued that the Chinese company was intending to openly use the Facebook brand to associate with its products and services. It has also been found out that Zhongshan Pearl River had the "face book" name registered 2 years ago.

With the ruling announced in Facebook's favor last April 28, local media has since speculated on the capital city's "softening" against the social network. Mark Zuckerberg recently flew into China to discuss important issues with Liu Yunshan, China propaganda chief and Alibaba CEO Jack Ma.

A number of trademark issue cases have been coming out lately, including Apple's sad loss to another Chinese company using "IPHONE" on its products. Trademark lawyer for Withers & Rogers' Mark Armitage noted that China has gradually changed its perceptive with intellectual property rights talks lately and that the courts are taking such issues seriously.

In a related CNN Money post, when questioned regarding the Beijing court's decision to deny the "face book" name, a source at the Zhongshan Pearl River Beverages firm denied commenting on the issue. There were unclear indications as to the company already using the said name on its goods. Facebook also kept mum on the subject.

It has been a known fact that the trademark laws in China apply on a first-hand principle, meaning, outside companies need to prove prime existence of their brands especially if known in China. And although Facebook is not welcomed in China for the time being, Chinese companies do use the social network's services to market overseas.

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