On June 29, 2026, the Suzhou Intermediate People’s Court issued a first-instance judgment in the trademark infringement case brought by Louis Vuitton (“LV”) against Molly Tea (Moli Naibai). The court found that Molly Tea had infringed seven of LV’s registered “four-petal flower” graphic trademarks, and ordered it to cease the infringement, pay RMB 10 million in economic damages and RMB 300,000 in reasonable enforcement costs, and publish a public statement on six official platforms to eliminate the adverse effects.
LV is a French luxury goods company whose “four-petal flower” graphic has been used as a core element of its Monogram pattern since 1896 and enjoys extremely high recognition. Molly Tea is a Chinese freshly-brewed tea brand with over 2,300 stores nationwide; its brand logo, store decor, product packaging, and other materials extensively feature a black-and-white four-petal flower graphic highly similar to LV’s. Although the two parties operate in entirely different industries, the court found that LV’s relevant trademarks constitute well-known marks and are entitled to cross-class protection under trademark law. Additionally, the court noted that Molly Tea continued large-scale use of the mark even after its trademark applications had been rejected, demonstrating clear subjective bad faith. In determining damages, the court referenced Molly Tea’s approximately RMB 4 billion in revenue for 2025 and the fact that infringing products accounted for approximately 35% of its business, and set the basis for infringing profits at RMB 10 million.
This case offers the following lessons for foreign companies enforcing their rights in China:
Cross-class protection for well-known trademarks is a powerful legal tool.
This case demonstrates that as long as a right holder’s trademark constitutes a well-known mark in China, its protection can extend to entirely different industries. Foreign companies should actively seek well-known trademark recognition to combat free-riding across industry lines.
Early and comprehensive trademark registration is essential.
LV has registered hundreds of trademarks in China, covering graphics, word marks, and combinations, which enabled it to assert seven trademark rights in this case. Foreign companies should complete trademark registrations in core and defensive classes before entering the Chinese market. For more information, please check our previous post: Filing a Trademark Application in China
Gather infringer business data through multiple channels.
The high damages award in this case relied on key data such as Molly Tea’s revenue. Foreign companies should systematically collect financial evidence of infringers through public filings, annual reports, financing information, and other channels to support substantial damages claims.
Adopt a combined “headquarters + outlets” litigation strategy.
LV sued both the brand owner and a franchise store simultaneously, striking at both the source and the end-user, thereby expanding the deterrent effect of enforcement.
In recent years, China’s judicial protection of intellectual property rights has continued to strengthen. With the right measures in place, foreign companies can effectively enforce their rights through lawful channels.
