Chinese Bubble Tea Firm Molly Tea Infringes Louis Vuitton Trademark, Faces $1.5 Million Penalty

The Guangzhou Intellectual Property Court has ruled against Chinese bubble tea operator Molly Tea, mandating a payment of CNY#10 million, approximately $1.5 million, to Louis Vuitton. The judgement, finalised on 28th May, cited Molly Tea's use of a four-petal flower motif that closely replicated Louis Vuitton's registered trademark, deeming it an act of trademark infringement and unfair competition.

Louis Vuitton initiated legal proceedings in 2022, asserting that Molly Tea's marketing and products, including cups, posters, and social media promotions, unlawfully appropriated its distinctive design. The court's decision noted Molly Tea's significant market presence across China, arguing that the widespread infringement warranted substantial penalties to deter future violations. This case highlights the ongoing challenges luxury brands face in protecting intellectual property rights within the Chinese market, despite an increasing number of favourable rulings for foreign entities.