Court cuts New Balance compensation in China trademark lawsuit

An affiliate of U.S. sneaker maker New Balance was ordered to pay a Chinese businessman 5 million yuan (760,500 U.S. dollars), instead of the previously ruled 98 million yuan, for infringing his trademark rights.

The ruling, issued by Guangdong provincial higher court Thursday, also ordered New Balance Trading (China) Co. to publish a statement on its website and online stores to clarify the infringement and eliminate its influence as much as possible.

It said New Balance had sold products in China under the name "Xin Bai Lun" since 2007, but the name was too similar to the trademark "Bai Lun" registered by Guangdong businessman Zhou Lelun in 1996.

Zhou also applied to register "Xin Bai Lun" for footwear in 2004 and got approval in 2008.

The court dismissed the "necessity" argument by the U.S. company to use "Xin Bai Lun" instead of its registered trademark "New Balance" in China, as "Xin Bai Lun" is neither the translation or transliteration of "New Balance."

Zhou took New Balance to court in 2013.

Last year, an intermediate court in Guangdong ruled New Balance should pay 98 million yuan in compensation, which amounted to half of the profits made during the infringement period.

New Balance appealed to the higher court that held Zhou's trademark was valid and must not be infringed upon. Endi