A high-profile trademark infringement case was recently concluded by the People’s Court of Haining City, Zhejiang Province. Multiple defendants were ordered to pay a total of 815,000 yuan for economic losses and reasonable rights-protection expenses, for using signs similar to the well-known brand MLB on garments without authorization.
This case clarifies an important legal rule: even if a trademark is later invalidated, the holder shall still be liable for infringements committed before the invalidation. It has sounded a serious alarm for all market operators.
MLB Brand Targeted by Brand Free-Riding
The plaintiff is Major League Baseball Properties. Based on the intellectual property of Major League Baseball and its teams in the United States, the company has duly registered a series of MLB trademarks in China, which are widely used on apparel, shoes, hats, bags and other commodities. It enjoys the exclusive right to use these registered trademarks.
Through years of continuous promotion and sales via online and offline channels, the MLB brand has gained extensive popularity and influence among the public. As a leading brand in the fashion apparel sector, it is favored by young consumers for its unique baseball culture and iconic team logos, with its commercial value rising steadily.
In 2025, the plaintiff discovered that two online store operators, Weng and Cai, opened an e-commerce shop named MLBGU NY Men’s & Women’s Apparel on an online platform, selling products bearing signs highly similar to the MLB trademarks. According to the hang tags on the goods, the registered owner of the "MLBGU NY" trademark was a management company, and the manufacturer was a garment factory.
The plaintiff held that the joint acts of the above defendants infringed its exclusive right to use registered trademarks. The infringement not only led to a drop in sales of genuine products, but also severely damaged the brand reputation due to the uneven quality of infringing goods.
In September 2025, Major League Baseball Properties filed a lawsuit against three parties including the two shop operators, the management company and the garment factory, claiming 1 million yuan for economic losses plus 15,000 yuan as reasonable expenses for stopping infringement.
Determination of Infringement
The court held that the use of "MLBGU NY" in the shop name and product links constituted trademark use, as these signs functioned to identify the source of goods. The clothes and trousers sold in the store fell into the same commodity category as those designated for the plaintiff’s registered trademarks.
The court further pointed out that the accused signs were highly similar to the MLB trademarks in overall visual effect, including letter combinations, font styles and layout. They were highly likely to confuse consumers about the product origin, or make people mistakenly believe there was a cooperative relationship between the defendants and the plaintiff. Such systematic imitation was by no means a coincidence and demonstrated bad faith.
The court divided liabilities among the defendants as follows:
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Online store operators (Weng and Cai): As direct sellers, they shall bear civil liabilities including ceasing infringement and compensating for losses.
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The management company: It was the producer of the infringing goods. The "MLBGU NY" trademark once owned by the company was invalidated due to inherent defects. The court rejected its defense based on the former trademark registration qualification, and the company was held liable for infringement.
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The garment factory: The factory proved that all its delivered products had no infringing signs or hang tags, and were only attached with its own factory certificates and instructions. There was no evidence proving it participated in label pasting or secondary processing, so it was exempted from liability.
Total Compensation of 815,000 Yuan
Taking into full consideration the high reputation of the MLB trademark, the long duration of the infringement, the large business scale and the total sales of infringing goods reaching several million yuan, the court handed down the ruling:
The online store operators and the management company shall jointly pay 800,000 yuan for economic losses and 15,000 yuan for reasonable rights-protection expenses, totaling 815,000 yuan. The two defendants were also ordered to stop all infringing acts and eliminate adverse impacts.
The compensation amount is relatively high among similar trademark infringement cases, fully reflecting the judicial stance of cracking down on malicious brand free-riding.
Case Significance
This ruling has drawn wide attention across the industry. It sets a typical precedent by explicitly applying the rule that a party whose trademark has been invalidated still needs to assume liability for infringements occurring prior to the invalidation.
The case sends a clear message to the whole society: the trademark registration system is designed to protect genuine innovation and honest business operations, rather than serving as a loophole for illegal acts.
