Infringers of “洪瑞珍” mark sentenced to six months in prison

　The second-generation business operator of the famous store, Hung Rui Chen Sandwich, HONG Chun-Sheng, who is the proprietor of the store’s Chinese character mark, “洪瑞珍” and other relevant registered marks, filed a trademark infringement lawsuit against his cousin, HONG Yu-Shan and the cousin’s husband, CAI Zhi-Ming (hereinafter “Hong and Cai”), for the couple had been using the Chinese character mark, “洪瑞珍”, the stylized mark consisting of the three Chinese characters, “洪瑞珍” in a circle, and the English mark, “HUNG RUI CHEN” (hereinafter the “marks at issue”) on the branch stores located in Xinzhuang and Taipei Main Station run by the couple under the name, “Ho Family Hung Rui Chen Sandwich Shop” (Chinese: 洪家手作).  After indicted by the prosecutor, both Hong and Cai were tried and convicted of Trademark Act violation by the New Taipei District Court and were sentenced to six months in jail.  This judgment is appealable.   

　According to the reasoning of the judgment, Hong and Cai already signed a settlement agreement with HONG Chun-Sheng early on August 1, 2018.  However, Hong and Cai still had used the marks at issue and other Chinese descriptions, such as, “洪瑞珍三明治” (meaning “Hung Rui Chen sandwich”), “洪瑞珍二代概念店” (meaning “second-generation concept store of Hung Rui Chen”), and “洪瑞珍洪家手作三明治” (meaning “Ho Family Hung Rui Chen Sandwich”) for the above mentioned two branch stores for a period from August 1, 2018 through April 2020.  The three Chinese characters, “洪瑞珍” were used in the couple’s physical storefronts or used on website in the manners or on the spots that are easily and readily seen by consumers, such as, signboards, in-store bulletin, advertising icon on fan page, packaging of all kinds of products, receipts, business cards, and web page for delivery, etc..  Moreover, Hong and Cai used the three Chinese characters, “洪瑞珍” in the manners that would cause general consumers to realize that the stores are run by HONG Chun-Sheng or run under licensing by HONG Chun-Sheng.  Besides, these Chinese descriptions, such as, “洪瑞珍三明治” (meaning “Hung Rui Chen sandwich”), “洪瑞珍二代概念店” (meaning “second-generation concept store of Hung Rui Chen”), and “洪瑞珍洪家手作三明治” (meaning “Ho Family Hung Rui Chen Sandwich”) all represent that the products or services provided by Hong and Cai come from “Hung Rui Chen” and therefore amount to trademark use.  

　The judgment also indicated that the Chinese character mark, “洪瑞珍” is widely and highly known in Taiwan.  As such, Hong and Cai’s continued use of the marks at issue, for profit-seeking purpose and without due authorization, on identical or similar products and services after the settlement with HONG Chun-Sheng not only forms consumers’ confusion and thus disorders market order, and ultimately undermines the system and policies implemented for IPR protection in Taiwan.  In addition to the foregoing, the New Taipei District Court imposed six-month imprisonment on Hong and Cai each also because Hong and Cai had been engaged in the trademark infringement for more than 1 year and also denied the offense alleged against them and have failed to reached a settlement with or compensate HONG Chun-Sheng up to date.  (Released 2022.05.12)