Zhoushan City Aquatic Product Alliance initiated a civil action
against Beijing Shenmaren Food Sales Co. ("Shenmaren"),
on the grounds that " Zhoushan Jingxuan Daiyu" produced
by Shenmaren with the indication of "ZHOUSHANDAIYU"
prominently printed on the package would likely mislead the public
and infringe upon the exclusive right of Zhoushan City Aquatic
Product Alliance to use the mark. Zhoushan City Aquatic Product
Alliance requested Shenmaren to cease the infringement and
compensate for their losses.
Shenmaren defended that their products were made from Daiyu
("hairtail" in Chinese pinyin) in Zhoushan district, thus
they were legitimate to use "ZHOUSHANDAIYU" and such use
did not constitute infringement to the trademark right of Zhoushan
Aquatic Product Alliance. Moreover, Shenmaren claimed that they
also used their own mark "Xiaojiaolong" on the products,
and thus their use of "ZHOUSHANDAIYU" would not cause
confusion to the public. Upon hearing, Beijing First