Louis Vuitton won a RMB 10.3 million trademark lawsuit against Chinese tea brand Molly Tea over a floral design, sparking public debate and impacting LVMH sales.
Tags:Louis Vuitton Won the Lawsuit—But Did It Lose China’s Public Opinion?
A Louis Vuitton store in China. Photo: IC Photo via Caixin.
A legal battle between Louis Vuitton and a Chinese tea chain has become a much bigger debate about trademarks, traditional Chinese design and the power of public opinion.
In June, the Suzhou Intermediate People’s Court ruled that Chinese tea brand Molly Tea had infringed seven Louis Vuitton graphic trademarks.
At the centre of the dispute was a four-petal flower design.
The court ordered Molly Tea to stop using the disputed logo and pay RMB 10 million in damages, plus RMB 300,000 in legal and investigation costs. The total compensation came to RMB 10.3 million.
Why did a tea brand end up in court?
Molly Tea uses floral imagery as part of its brand identity. The company has said that its design was inspired by jasmine flowers and traditional Chinese decorative patterns.
Louis Vuitton argued that the design was too similar to its famous four-petal flower pattern, which has been registered as part of its trademark portfolio in China for many years.
The court’s reasoning was that it was not protecting “a flower found in nature.” Instead, it was protecting a specific visual combination that had gained strong brand recognition through long-term commercial use.
In other words, a common natural element can still receive trademark protection when it becomes closely associated with a particular brand.
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The court decision did not end the argument
The ruling quickly triggered online debate in China.
Some people argued that Louis Vuitton had the legal right to defend its trademark. Others questioned whether a global luxury brand should claim exclusive control over a flower-like design, especially when similar floral patterns have appeared in traditional Chinese art and decoration for centuries.
Another point of debate was the difference between the two businesses. Louis Vuitton sells luxury fashion and leather goods, while Molly Tea sells drinks. Some consumers asked whether an ordinary tea customer would really mistake the two brands.
Molly Tea’s founder has said the company plans to appeal. The first-instance judgment may therefore not be the final outcome.
LVMH says the dispute affected its China business
On October 12, LVMH, Louis Vuitton’s parent company, released its third-quarter results.
During the earnings call, LVMH Chief Financial Officer Cécile Cabanis said the legal dispute had a negative impact on the group’s performance in China at the beginning of the quarter.
The group did not say that the lawsuit was the only reason for weaker demand. China’s luxury market has also been affected by broader economic pressure and changing consumer habits.
However, the admission still attracted attention because it suggested that a legal victory can create a commercial problem when public opinion turns against the winning side.
LVMH said it would continue investing in China.
Source:财新网
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