In April 2011, Xiaomi Technology Co., Ltd. registered the "Xiaomi" trademark, and the approved products include mobile phones and video phones. Since then, a series of trademarks such as "" and "Zhi Mi" have been applied for registration successively. Since 2010, Xiaomi Technology Company and Xiaomi Communication Company have successively won a number of national honors in the industry. Major media have carried out continuous and extensive publicity reports on Xiaomi Technology Company, Xiaomi Communication Company and their Xiaomi mobile phones.
In November 2011, Zhongshan Povos Appliances Co.,Ltd. applied for the registration of the "Xiaomi Life" trademark, which was approved for registration in 2015. The approved products include electric cookers, water heaters, electric pressure cookers, etc. In 2018, the registered trademark of "Xiaomi Life" was declared invalid because it was "registered through improper means". In addition, among the more than 90 trademarks registered by Zhongshan Povos Appliances Co.,Ltd., not only many are similar to the “Xiaomi” and “Zhi Mi” logos of Xiaomi Technology Company, but also many are same or similar to other well-known brands including “Pepsi-Cola”, “PAPSIPAPNE”, “Galaxy”, and “Mr Muscle”.
The Higher People's Court of Jiangsu Province held that the number of comments on online store products can be used as a reference for determining the volume of commodity transactions. The sales of the 23 stores involved can be included in the calculation of the infringement profits in this case. At the same time, it is believed that:
Until the second instance, Zhongshan Povos Appliances Co.,Ltd. continued to promote and sell the alleged infringing goods, which had obvious infringement maliciousness.
Zhongshan Povos Appliances Co.,Ltd., etc. sells online through multiple e-commerce platforms and many shops. The infringing goods displayed on the web page are diverse, large in quantity, and scope of infringement. This scenario should also be used as a factor in determining the amount of punishment.
The "Xiaomi" trademark is a well-known trademark with high visibility, reputation and market influence.
4. The alleged infringing goods were identified as substandard products by the Shanghai Municipal Market Supervision and Administration Bureau, and some users also reported that the alleged infringing goods had certain quality problems. The alleged infringements carried out by Zhongshan Povos Appliances Co.,Ltd. and others have caused damage to the good reputation of Xiaomi Technology Company and Xiaomi Communication Company. The intensity of punishment should be increased. The infringement profit shall be used as the base of compensation, and the compensation amount shall be determined with three times. The 50 million yuan compensation claimed by Xiaomi Communication Company shall be fully supported.
The judgment comprehensively analyzed and elaborated the "malicious" and "serious circumstances" elements of punitive damages and the method of determining the base and multiples. It not only took into account the characteristics of the sales of the alleged infringing goods, but also comprehensively analyzed the relevant factors affecting the penalty multiples. The multiples that are compatible with the subjective and malicious degree of the infringement, the severity of the circumstances, and the severity of the consequences of the infringement provide a practical sample for the application of the punitive damages system and reflect the orientation of severely cracking down on serious infringements of intellectual property rights.