Baker McKenzie has recently represented ChildLife to successfully obtain a landmark interlocutory injunction in Hong Kong High Court.
ChildLife is a US-based company that specializes in paediatrician-developed nutritional vitamin supplements, specifically formulated for babies, toddlers and teens.
ChildLife’s ex-distributor used to be its exclusive distributor in Mainland China, Hong Kong and Macao and has been operating certain flagship stores in cross-border e-commerce platforms (i.e., tmall.hk and jd.hk) through its Hong Kong-registered affiliates (“defendants”). The distributorship agreement was terminated in March 2021 upon discovery of various serious breaches by the ex-distributor. Notwithstanding the termination, the ex-distributor not only refused to transfer the flagship stores to ChildLife after the agreement has ended, it has even started to sell its own brand of nutritional supplements with highly similar packaging designs (including the use of ChildLife's distinctive red heart logo) on the flagship stores.
The injunction order by the Hong Kong High Court essentially restrains the defendants from committing passing off and copyright infringement acts in Mainland China. Specifically, this is the first successful Hong Kong injunction concerning a cross-border e-commerce platform based on double actionability, allowing the court to take into consideration torts committed by the Defendants outside of Hong Kong.
This groundbreaking rule has major significance, as, it signifies the possibility of using Hong Kong as a potential avenue to pursue legal actions against infringement acts that take place in Mainland China.
The Baker McKenzie team was led by Partner Andrew Sim, with support from Special Counsel Kenny Cheung and Associate Helen Pang.
Commenting on the case, Andrew Sim, who leads the IP enforcement and litigation practice for Baker McKenzie in Hong Kong, said: "We are very pleased that we have been able to draw on our commercial litigation and IP law capabilities and successfully represented our client in this landmark case. This judgment is most significant, as it sets a new precedent for similar cases in the future. We look forward to continue supporting our clients to protect their commercial interest and IP rights in Hong Kong and other parts of Asia and the world."
ChildLife is a US-based company that specializes in paediatrician-developed nutritional vitamin supplements, specifically formulated for babies, toddlers and teens.
ChildLife’s ex-distributor used to be its exclusive distributor in Mainland China, Hong Kong and Macao and has been operating certain flagship stores in cross-border e-commerce platforms (i.e., tmall.hk and jd.hk) through its Hong Kong-registered affiliates (“defendants”). The distributorship agreement was terminated in March 2021 upon discovery of various serious breaches by the ex-distributor. Notwithstanding the termination, the ex-distributor not only refused to transfer the flagship stores to ChildLife after the agreement has ended, it has even started to sell its own brand of nutritional supplements with highly similar packaging designs (including the use of ChildLife's distinctive red heart logo) on the flagship stores.
The injunction order by the Hong Kong High Court essentially restrains the defendants from committing passing off and copyright infringement acts in Mainland China. Specifically, this is the first successful Hong Kong injunction concerning a cross-border e-commerce platform based on double actionability, allowing the court to take into consideration torts committed by the Defendants outside of Hong Kong.
This groundbreaking rule has major significance, as, it signifies the possibility of using Hong Kong as a potential avenue to pursue legal actions against infringement acts that take place in Mainland China.
The Baker McKenzie team was led by Partner Andrew Sim, with support from Special Counsel Kenny Cheung and Associate Helen Pang.
Commenting on the case, Andrew Sim, who leads the IP enforcement and litigation practice for Baker McKenzie in Hong Kong, said: "We are very pleased that we have been able to draw on our commercial litigation and IP law capabilities and successfully represented our client in this landmark case. This judgment is most significant, as it sets a new precedent for similar cases in the future. We look forward to continue supporting our clients to protect their commercial interest and IP rights in Hong Kong and other parts of Asia and the world."
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