For a long time, there has been a debate over whether
foreign-oriented OEM processing constitutes trademark use and/or
trademark infringement in different cases. In a recent case from
Shanghai, i.e. (2023) Hu 73 Min Zhong No. 475, the court held that
foreign-related OEM processing did not constitute trademark
infringement.
Case Background
Chongqing Senci Import & Export Trade co., Ltd. (hereinafter
referred to as "SENCI") intended to export a model
machine of gasoline generator to the United States. The trademark
"PREDATOR" was used on the gasoline generator. However,
Fuzhou Yama Electromechanical Co., Ltd. (hereinafter referred to as
"Yama") had registered the trademark "PREDATOR"
in respect of "generators of electricity; emergency power
generators" in class 7 and recorded it with the Chinnese
Customs. China Yangshan Customs issued a notification regarding the
gasoline generator marked with "PREDATOR" to Yama and
stopped the gasoline generator at the request of