ChaYanYueSe Successfully Sues ChaYanGuanSe, Battle Between Authentic and Counterfeit Brands! Is ChaYanYueSe Milk Tea Delicious?

Introduction: The Legal Battle Begins

In April 2020, "ChaYan GuanSe" sued "ChaYan YueSe" for trademark infringement — and lost! In January 2021, "ChaYan YueSe" countersued "ChaYan GuanSe" for unfair competition and won!! This sequence of legal maneuvers immediately drew a wave of netizens who sat in front of their screens with a Sheng Sheng Oolong and an Orchid Latte, enjoying the drama. Let's sort out the whole story.

Trademark History

According to reports, the "ChaYan GuanSe" trademark was first registered in 2008. After finding little success, the trademark changed hands several times before being obtained by Guangzhou Luoqi Company, which licensed it to related milk tea shops in 2017. The "ChaYan YueSe" trademark, meanwhile, was registered in 2013 and promoted from that same year, earning consumer recognition and high popularity in Changsha. The four-character mark "ChaYan YueSe" thereby acquired distinctiveness and significance.

Back then, the owner of "ChaYan YueSe" lacked awareness of copyright and trademark protection and took few legal measures to safeguard the mark. They never imagined that another trademark with such similar wording would one day sue them for infringement. (Key point: at the time, both brands' trademarks consisted only of characters, without any imagery.)

Later, in 2017, "ChaYan YueSe" added an image of a gentle woman to its original trademark and re-registered it. At the same time, the brand renovated its milk tea shops in a new style and kept launching teas with ancient-style names, drawing waves of young customers to visit and take photos.

The Legal Dispute

At this point, "ChaYan GuanSe" began its imitation operations. Since "ChaYan YueSe" had stores only in Changsha, "ChaYan GuanSe" took advantage of the gap, copied the shop style, and opened stores in multiple cities — even abroad. Business improved considerably, but their popularity still couldn't match "ChaYan YueSe," so they decided to sue "ChaYan YueSe" to grab trending-topic traffic and public attention.

Obviously, that lawsuit failed! According to the court's review of the scope of use, the two trademarks' scopes were not the same. "ChaYan YueSe" stores do not provide tea house services such as refills with additional ingredients; their trademark mainly identifies the source of goods rather than services and did not exceed its approved scope. The court also pointed out that Guangzhou Luoqi Company, despite knowing how popular "ChaYan YueSe" was, still allowed other milk tea shops to use the "ChaYan GuanSe" trademark — a violation of the principle of good faith. "ChaYan YueSe" was therefore found not to constitute trademark infringement.

"ChaYan YueSe" responded with a countersuit against the Liu Qiong Beverage Store and Guangzhou Luoqi Company behind "ChaYan GuanSe" for unfair competition. The countersuit argued that "ChaYan GuanSe" used decoration, shop layout, and trademark imagery similar to "ChaYan YueSe," constituting confusion and unfair competition. "ChaYan GuanSe" had only developed after "ChaYan YueSe" had already gained popularity, and as the later user of the mark, it should have yielded.

The Verdict and Aftermath

In this countersuit, "ChaYan YueSe" won! Netizens cheered: justice may be delayed, but it inevitably arrives!! Think the case ended there? Not yet — "ChaYan GuanSe" refused to accept the defeat and appealed on the spot... (utterly stubborn!), but the court rejected the appeal!

After this victory, "ChaYan YueSe" immediately announced the news and offered perks to netizens who had supported the brand. The case isn't fully over, and it's too early to say whether there will be further developments. But one thing is clear: the law will inevitably protect the legitimate rights of operators who honestly build unique names and trademarks, upholding market fairness.

Image source: Internet

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