It may be a moderate success in terms of economic scale; nevertheless, Bayer AG's recent victory in a Chinese court over a firm that blatantly infringed Bayer's trade name sends a positive message.
The Intermediate People's Court in Quzhou, Zhejiang province, reached a verdict earlier this month, charging Quzhou Baier Sunshine Building Materials Co. Ltd. trade name infringement and unfair competition. Baier was ordered to change its company name, make a public apology in a newspaper and pay a 200,000 yuan (US$29,378 or 23,171 Euros) fine.The Chinese characters for "Baier" look the same as Bayer's Chinese name.Reports said the company was able to register the "Baier Sunshine" name because it was deemed a trade name as a whole. However, the company intentionally left out the "Sunshine" part in its product branding and marketing. Since Baier's products - plastic boards - are in the same category as those made and marketed by Bayer MaterialScience's Chinese subsidiary Bayer (Beijing) Sheet Co. Ltd., the court concluded that Baier's misleading and deceptive conduct constitutes unfair competition.It was reported that Baier had received administrative penalties from the local Industrial and Commercial Bureau, but those measures failed to deter the company.Bayer filed the lawsuit in late 2009.