Is HEYTEA Coffee's Trademark Registration Deceptive? HEYTEA Sues the National Intellectual Property Administration!
Domestic new-style tea brands keep pushing across category lines. HEYTEA, known for "always being more than just tea," began its crossover into coffee in March 2019. Breaking from traditional coffee-making, it pioneered the "milk-tea-ification" of coffee by adding ingredients such as brown sugar boba, pudding, Oreo crumbs, and cheese foam to coffee drinks, making the products exceptionally appealing.
At the same time, the product packaging carried a strong Hong Kong-style aesthetic that matched the emerging national trend of the moment. The result drew considerable praise on launch and encouraged many people who had never tried coffee to give it a go.
Trademark Application Challenges
As the "HEYTEA Coffee" series gained popularity, HEYTEA worked to further fuse milk tea and coffee. The company strategically moved to align its brand with trademarks, applying for registration in categories including coffee, preparing thoroughly for the launch of its coffee products. The "HEYTEA Coffee" trademark, however, was not approved by the Trademark Office of the National Intellectual Property Administration.
After review, the Trademark Office determined that the distinctive part of the "HEYTEA Coffee" trademark, "HEYTEA," is similar in text composition and identical in meaning to the distinctive text "Xi Cha" of the cited trademark, constituting similar trademarks. In addition, the goods for which "HEYTEA Coffee" is designated — such as "coffee beverages; milk coffee beverages; cocoa beverages" — belong to the same category as the tea beverages and other products approved for the cited trademark. Their coexistence would likely confuse the relevant public about the source of the goods. The Trademark Office therefore rejected the registration application.
Legal Proceedings and Court Decisions
According to the China Trademark Network, Shenzhen Meixixi Catering Management Co., Ltd., HEYTEA's operating entity, applied to register the "HEYTEA Coffee" trademark on June 13, 2019. The trademark's current status is under review after rejection.
HEYTEA was dissatisfied with the rejection, arguing that use of the "HEYTEA Coffee" trademark on the goods under review would not cause public confusion. Its affiliate, Shenzhen Meixixi Catering Management Co., Ltd., filed a lawsuit against the National Intellectual Property Administration in November 2020, asking the court to revoke the challenged decision and order a new one. It also submitted several prior judgments and a list of trademark registrations containing the word "coffee" that had been approved by others in Class 30 related goods.
After review, the Beijing court issued the "First-Instance Administrative Judgment of Shenzhen Meixixi Company vs. National Intellectual Property Administration" on May 26, 2022.
The court held that, regarding the administration's finding that use of the trademark on goods such as sugar, bread, pudding, chocolate chips containing ground coffee beans, and cocoa beverages would likely mislead consumers about the characteristics or quality of the goods, the rejection should stand under Article 10, Paragraph 1, Item (7) of the Trademark Law — "trademarks that are deceptive and likely to cause the public to be mistaken about the quality, characteristics, or place of origin of goods." (A deceptive trademark is one that, whether through the mark itself or its constituent elements, is likely to give the relevant public an incorrect understanding of the source, origin, quality, or characteristics of the goods, thereby misleading consumers.)
The court also stated that the evidence Shenzhen Meixixi submitted was insufficient to prove the "HEYTEA Coffee" trademark would not mislead consumers, so its related claims lacked factual and legal basis and were not accepted.
As for the administration's decision to reject the application under Article 30 of the Trademark Law — "trademark applications that do not comply with the provisions of this Law or are identical or similar to trademarks already registered or preliminarily approved by others on the same or similar goods" — the court affirmed it after review as well.
The court held that the distinctive part of the disputed trademark, "HEYTEA," is similar to the Chinese character part "Xi Cha" of cited trademarks 1 and 2, which would likely confuse the relevant public about the source of the trademarked goods. At the same time, Shenzhen Meixixi failed to provide sufficient evidence that the disputed trademark had acquired distinctiveness through use and would not easily cause confusion.
Taking everything into account — that the administration's findings of fact were clear, the application of law and its conclusions correct, and the procedures lawful — the plaintiff's claims lacked factual and legal basis. In accordance with Article 69 of the Administrative Litigation Law, the court rejected Shenzhen Meixixi's claims.
Image source: Network
FrontStreet Coffee Recommendation
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Important Notice :
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