Short-form video content has been dominating the social media landscape in recent years. It is an effective medium to catch mass attention in no time. In China, the most popular platforms for short-form videos include TikTok, Kuaishou, Xiaohongshu and WeChat Video. Enterprises have started to take advantage of short-form videos to build their brand image and directly engage with their customers to boost sales, and at the same time these short-form video platforms become the new hot spots for IP infringement. In June 2021, the Beijing Haidian People's Court handed down the first judgment for trademark infringement case involving the short-form video platform, TikTok, in China, and is the first case applying the Measures for the Administration of Live Streaming Marketing (for trial implementation). In this article, we will look at what happened in this landmark case and the points to take.
The French brand "AGATHA" is the plaintiff of this case who sued the first defendant Hengyu Company for conducting a livestream on its TikTok account, in which the defendant sold handbags bearing the plaintiff's trademarks. TikTok was also sued in the same proceedings for not fulfilling its reasonable duties in handling the trademark infringement.
Although the first defendant, Hengyu, argued that they were duly authorized by a third party to the case, the plaintiff was able to adduce sufficient evidence that they had never licensed any third party to use their marks. As such, the court ruled in favor of the plaintiff in relation to the trademark infringement claim and awarded them damages of RMB 300,000 (-USO 46,550).
