A Chinese court just found in favor of New Balance in a trademark case. This is a big win for the American sneaker manufacturer. After all, it has been traditionally very difficult for companies to win IP suits in a country that has many times been accused of turning a blind eye to counterfeits.

The Chinese court ruled that three companies in China–New Boom, New Barlun, and New Bunren–all infringed upon New Balance’s logo, a distinctive N. The three companies owe a combined $1.5 million to New Balance. But while that sum may not seem like much, it’s more than American companies usually get. And it may pave the way for other American companies to be successful in IP disputes in China.

In the past, American companies usually ended up as losers when contesting trademarks. In 2016, Apple lost a lawsuit against a Chinese company using the “iPhone” trademark. Pfizer has lost multiple fights over its Viagra trademark. And Michael Jordan went through a protracted battle over the use of his own name. Most of these losses were based on the fact that Chinese law grants a trademark to whoever filed for it first, and most big American companies were just not quick enough.

But, that may be changing. The U.S. has put pressure on China to tighten its IP laws. China revamped its trademark law in 2014, allowing courts to award higher damages. Scott Palmer, a New York-based IP lawyer told the New York Times:

I don’t think this is a one-off. This is a fairly high-profile case, but I think that it falls squarely within a trend, in which the direction is more toward more significant damage awards when indeed it is warranted.

It doesn’t seem likely that American companies will necessarily start winning IP cases in China left and right. But for companies frustrated with their treatment in one of the world’s largest markets, this could be a good sign for the future.

Anneliese Mahoney

Anneliese Mahoney is Managing Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

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His unmistakeable bald-headed silhouette, arm outstretched and palming a basketball, adorns a Chinese sports company’s products and its nearly 6,000 storefronts. His transliterated name in Mandarin is Qiaodan (pronounced “chee-ow dahn”), which doubles as the company name, Qiaodan Sports Company. But on Thursday, China’s highest court ruled that Michael Jordan, whose name is recognized and monetized from Brooklyn to Beijing, owns the legal rights to the Chinese equivalent of his name.

Jordan initially filed the trademark lawsuit in 2012. As recently as last July China’s Supreme People’s Court ruled in favor of Qiaodan; lower courts ruled the same. But the highest court reversed those decisions on Thursday, giving Jordan a potentially precedent-setting victory. “Nothing is more important than protecting your own name, and today’s decision shows the importance of that principle,” Jordan said in a statement. Qiaodan officials, in a statement through their Weibo account, said they respected the ruling.

Trademark lawsuits in China, a country rife with cheaply made ripoffs, usually favor the first party to file the trademark. This ruling is unusual and, some legal analysts say, can set a new standard for Chinese companies that push the limits of trademark infringement and questionable branding practices. It is also not the first time a major U.S. brand has fought companies in Chinese courts. In May, Apple lost a lawsuit involving a Chinese company that sold leather products stamped with the iPhone trademark.

Michael Jordan beat Qiaodan in China’s Supreme People’s Court. He really is the GOAT: https://t.co/bohQBWrIIv pic.twitter.com/SA0BP726iO

— SoleCollector.com (@SoleCollector) December 8, 2016

The U.S. Chamber of Commerce welcomed the ruling, saying in a statement: “The Court has called an intentional foul and sent a clear message of deterrence to those who file trademarks in bad faith.” The statement continued, saying that the court’s decision is “about creating a legitimate marketplace where consumers can trust the products they buy.”

A family-owned business based in the southern Fujian province, Qiaodan first registered the “Qiaodan” trademark over a decade ago. Jordan sued in 2012. “It is deeply disappointing to see a company build a business off my Chinese name without my permission, use the number 23 and even attempt to use the names of my children,” he said in a statement at the time.

Jordan’s Chinese name will return to China’s State Administration for Industry and Commerce. And while the Chinese sportswear company will be forced to re-brand, the court did not grant Jordan full ownership of his Chinese name. The court said the pinyin, or romanized version of the name “Qiaodan” is a fairly common name that is not exclusively linked to the basketball legend.

Alec Siegel

Alec Siegel is a staff writer at Law Street Media. When he’s not working at Law Street he’s either cooking a mediocre tofu dish or enjoying a run in the woods. His passions include: gooey chocolate chips, black coffee, mountains, the Animal Kingdom in general, and John Lennon. Baklava is his achilles heel. Contact Alec at ASiegel@LawStreetMedia.com.

The post Michael Jordan Wins Four-Year-Old Trademark Lawsuit in China appeared first on Law Street.

Welcome to RantCrush Top 5, where we take you through today’s top five controversial stories in the world of law and policy. Who’s ranting and raving right now? Check it out below:

Hillary Is Disappointed, and So Are We

Last night Hillary Clinton spoke publicly for the first time since losing the election to Donald Trump. She has stayed out of the public eye since last Tuesday but speaking at a Children’s Defense Fund event in Washington, she said “I know many of you are deeply disappointed about the results of the election. I am, too–more than I can ever express.”

Just watched Hillary Clinton’s speech at the Children’s Defense Fund’s awards ceremony. Oh America. You made a monumental mistake.

— kc wildmoon (@wildmoon) November 17, 2016

“There have been a few times this past week when all I wanted to do was just to curl up with a good book or our dogs, and never leave the house again,” she said. We feel the same, Hillz.

via GIPHY

But she ended on a positive note, saying that America is still the greatest country in the world, and: “This is still the place where anyone can beat the odds. It’s up to each and every one of us to keep working to make America better and stronger and fairer.”

Rant Crush

RantCrush collects the top trending topics in the law and policy world each day just for you.

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