SPC's Position On OEM: The HONDAKIT Case In Focus

China has been the world's largest manufacturer for nearly a decade now, with much of its manufacturing consisting of original equipment manufacturing (OEM) under contract for export. Thousands of Chinese factories work as OEMs to make, process and deliver goods that are then sold on overseas markets by foreign purchasing parties. Typically, these are overseas manufacturers, resellers, or retailers for foreign brands owned or legitimately used by the foreign purchasing parties. Previously, Chinese courts typically treated OEM solely for export as a non-infringing act under the Trademark Law of the People's Republic of China. On 23 September 2019 however, the Supreme People's Court of China (SPC) issued a retrial judgment on a trademark dispute between Honda Motor Company Ltd and Chongqing Hengsheng Xintai Trading Co Ltd. The SPC ordered that the defendants immediately cease infringement of Honda trademarks and indemnify Honda 300,000 yuan in damages. This decision