Since 2012, Kweichou Moutai has been applying for “China Liquor Moutai” trademark, and passed the first trail. However, under the joint opposition of other liquor companies, after a long-term fight over the “China Liquor” trademark, it failed at the end. Currently, the State Administration for Industry and Commerce Bureau (hereinafter referred to as the trademark bureau) announced the decision of not granting the trademark of application 8377533 “China Liquor Moutai and logo”.
Kweichou Moutai first applied for “China Liquor Moutai” trademark in 2010. Due to the words “China Liquor” has huge hidden resources and “China” title has inestimable benefits, it attracted strong opposition from the entire liquor industry, especially the Fenjiu which was named the national famous liquor in 1952, submitted the first objection. Since then, few famous liquor companies such as Wuliangye, Jiannanchun, Swellfun, etc. submitted joint objection against the “China Liquor Moutai” trademark. Until the end of 3 months “China Liquor Moutai” trademark application publicity objection period, the trademark bureau received total 95 objections.
Over the years, China held 5 times international class liquor competition, Kweichou Moutai, Wuliangye, Jiannanchun, Yanghe, and Xifeng, etc. were named Top 10 Chinese liquor. These 10 liquors are outstanding iconic Chinese liquors, they are well respected by the consumers. Out of these 10 famous liquors, Kweichou Moutai may be ranked to the top, have higher values in production, sales, revenue, profits, stock value, and stock price, but it can only be one of the 10, or at the first place at best. Interestingly, Fenjiu applied for “China Liquor Fenjiu” trademark, and Wuniangye applied for “China Liquor Wuniangye” trademark, to combat the “China Liquor Moutai” trademark application. It can be anticipated that, if the “China Liquor Moutai” trademark application is successful, Fenjiu and Wuniangye can also obtain the “China Liquor” trademark – it is a flight between the famous liquor companies, and will turn the fight into a joke.
Kweichou Moutai has been fighting for “China Liquor” for 15 years. In recent years, although Kweichou Moutai does not use the “China Liquor Moutai” wording in its trademark, it has always been positioning and advertising itself as national liquor. Passing Kweichou Moutai’s “China Liquor” trademark application will easily create confusion over “China Liquor”, the impact on other liquor companies is self-evident. Also, from the legal perspective, “China Liquor Moutai” trademark is in contrary with the existing legal provisions. On one hand, “China Liquor” of the “China Liquor Moutai and Logo” has the meanings of “the best liquor in China” and “national level liquor”, if it is exclusively used by Kweichou Moutai permanently, it will have negative impacts on the order of fair market competition. Therefore, the trademark bureau believes the trademark application violates the provision 10.1.8 “other adverse effects” of the trademark law, and decided to reject the “China Liquor Moutai and Logo” trademark application; on the other hand, the existing advertisement law provision 9 states: “advertisement cannot have the following scenarios: (3) use “China”, “highest grade”, or “best”, etc. words.”, and the “Examination and Hearing Standards for Trademarks Containing ‘China’ and ‘National’” also clearly states that: “rejection to trademark applications of ‘China + product name’, manipulation of ‘China’ to exaggerate advertisement and fraudulence.”
Across the entire liquor industry, domestic liquor companies have strong interest in “China”. Luzhou Laojiao’s product National Pits 1573, Fenjiu Group’s product China Collection Fenjiu, Xifengjiu’s product China Classic Fengxiang, etc. are well-known within the industry. Wuniangye also launched high end liquor “China Wuye” in June 2012, and it has almost 10 product ranges are named starting with “China”. If the trademark registration of “China Liquor Moutai” is successful, it means the top priced liquor in China will be Kweichou Moutai, there will be negative effects on the market positioning of other liquor companies’ products, and will loss the fair competition in this industry. “China Liquor” is a general name for liquor, it should not be used exclusively by one company. Behind the failure of Kweichou Moutai’s “China Liquor” trademark registration, it implies a game between the interests of the liquor industry. The sales experts believe that, Kweichou Moutai has continuously advertising in large scale, investing in PR and websites, aggressive media strategies, which enabled them to achieve a powerful brand, and has successfully related the concept of China liquor with Kweichou Moutai in consumers’ mind. Therefore, the rejection of “China Liquor” trademark registration has no substantial influence on Moutai.