Without authorization, Shanghai Baotu Network Technology Co., Ltd. used "Xuexi Qiangguo" as a column name on the homepage of its website, while promoting paid VIP services. As a result, the company was ordered to issue a public apology on its homepage for 30 consecutive days and pay full compensation. The second-instance court upheld the original judgment, bringing a final conclusion to this landmark "traffic-leeching" case.
I. Case Summary: Using "Xuexi Qiangguo" as a Signboard – Becoming a "Defendant" in 48 Hours
1. Timeline
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March 2025: The technology company launched a new version of its homepage, adding a "Xuexi Qiangguo" column that links directly to its paid "converged media material packages."
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April 2025: The operator of "Xuexi Qiangguo" discovered the infringement, obtained notarized evidence, and sent a lawyer’s letter on the same day.
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May 2025: The case was filed with the Pudong New Area People’s Court, claiming cessation of infringement, elimination of adverse effects, and compensation of 1 million yuan.
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September 2025: First-instance judgment rendered: Found liable for trademark infringement and unfair competition; ordered to pay 418,000 yuan in compensation and issue an apology on the homepage for 30 days.
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December 2025: Shanghai Intellectual Property Court rejected the appeal and upheld the original judgment in the second instance.
2. Key Judgment Points
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"Xuexi Qiangguo" has been registered in multiple categories including Class 9, 35, and 41, and is recognized as a well-known trademark, entitling it to cross-class protection.
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The defendant’s use of the identical text for the same type of services (online learning, document download) constitutes trademark use.
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The daily PV (Page Views) of the homepage column reached 280,000, significantly boosting VIP conversion rates; the court confirmed obvious profits from the infringement.
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The defendant failed to provide legitimate authorization, showing obvious subjective malice, and was not entitled to the "fair use" defense.
II. Why Is Moving "Four Characters" to a Webpage Worth 418,000 Yuan?
1. Premium of a Well-Known Trademark
"Xuexi Qiangguo" has accumulated over 320 million registered users and 76 million daily active users (DAU), ranking first among national government affairs brands in terms of brand value for four consecutive years. The court adopted the brand owner’s data on "single-user acquisition cost of 12.6 yuan." Based on the defendant’s daily UV (Unique Visitors) of 280,000 and 58 days of infringement, the potential loss caused to the plaintiff through traffic conversion alone reached 2.2 million yuan; the final discretionary compensation of 418,000 yuan is already a "conservative version."
2. Clear Account of Infringement Profits
In internal emails, the defendant admitted that "one week after the launch of the new column, the VIP subscription rate increased by 7.3%," corresponding to additional revenue of 630,000 yuan. The court held that this evidence sufficiently proved a "direct causal relationship" between the infringement and the profits, thus fully supporting the plaintiff’s claim based on "infringer’s profits."
3. "Dual Highs" of Malice and Consequences
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High Malice: The defendant took the column offline within 48 hours of receiving the lawyer’s letter but re-launched it as the "Xuexi Qiangguo Premium Zone" in a modified form 7 days later, constituting repeated infringement.
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High Impact: The column was displayed on the homepage’s prime screen, a "golden traffic position" that amplified confusion among the public; therefore, the court ordered the defendant to publish a statement on the homepage for 30 consecutive days to correct misinformation.
III. Case Spillover: Three Wake-Up Calls for "Material Websites"
1. "Column Names" Also Constitute Trademark Use
Many website owners mistakenly believe that "it’s just a navigation link, not a trademark," but the court’s judgment clearly states: As long as the use serves to identify the source of services, it constitutes trademark use; unauthorized use constitutes infringement.
2. Well-Known Trademarks Enjoy Protection Beyond "Same Category"
"Xuexi Qiangguo" is registered in Class 41 for "online education," while the defendant provides "design template downloads," which seem to belong to different categories. However, due to the former’s status as a well-known trademark, cross-class protection still applies.
3. "Failure to Rectify After Receiving a Letter" = Gateway to Punitive Damages
The defendant’s temporary takedown followed by re-launch after receiving the lawyer’s letter was deemed "repeated malice" by the court, becoming a key factor in the discretionary increased compensation. If punitive damages are introduced into the Trademark Law in the future, similar acts may face fines of 1 to 5 times the damages.
IV. Compliance Checklist for Operators
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Conduct trademark searches and comparisons for any clickable text, icons, or banners on the homepage before launching to avoid similarity with well-known trademarks.
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Immediately take infringing content offline and retain records upon receiving notifications from rights holders; never "rebrand and re-launch."
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For material websites involving high-frequency keywords related to government affairs, media, or central enterprises, obtain written authorization in advance or use descriptive expressions (e.g., "current political education materials" instead of "Xuexi Qiangguo Zone").
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Establish isolated accounts for "traffic conversion" data to prevent internal emails and meeting minutes from being used as "profit evidence" in infringement claims.
V. CONCLUSION
"Xuexi Qiangguo" is not the first well-known trademark to be exploited for traffic, and it will not be the last. The Pudong New Area People’s Court’s judgment of 418,000 yuan has essentially set a clear "usage fee" benchmark for all material platforms: Those seeking to divert traffic through well-known trademarks must prepare for a seven-figure bill; otherwise, they will face 30 days of "public shaming" on their homepage and equivalent compensation. Traffic can be pursued quickly, but compliance cannot be delayed – because the law never offers discounts for "riding on trends."
