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ARTICLE · 07 MARCH 2026

Trade mark ruling extends infringement to digital worlds

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This case marks the extension of China's judicial protection of IP to digital worlds.

ChinaIntellectual Property
Amy Chan
Amy Chan
Vicky He
Vicky He
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As a case involving virtual in-game items, the final ruling in the trade mark infringement and unfair competition dispute between Xuanwo Automotive Technology (Shanghai) Co., Ltd. ("Xuanwo") and several entities, including Shanghai Qiaoba Taifeng Co., Ltd. ("Qiabo Taifeng"), carries pivotal significance.

In July 2025, Hangzhou Intermediate People's Court in Zhejian Province issued a final judgement in this long running dispute, opening the doors to virtual infringement. The trademark infringement and unfair competition dispute between Xuanwo Automotive Technology (Shanghai) Co., Ltd. ("Xuanwo") and several entities including Shanghai Qiaoba Taifeng Co., Ltd. ("Qiaoba Taifeng"). In its judgement, the second-instance court not only affirmed acts of conventional trade mark infringement but also broke new grounds by recognising virtual automobiles in games as similar goods to real-world automobiles.

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