China: LVMH Wins Trademark Case Against Chinese Tea Chain in US$1.5 Million Judgment

French luxury goods company LVMH has secured a significant trademark victory in China after a court ordered Chinese tea chain Molly Tea to pay 10.3 million yuan (approximately US$1.5 million) in damages for trademark infringement involving the Louis Vuitton monogram.

The ruling, issued by the Intermediate People’s Court of Suzhou in Jiangsu Province, found that Molly Tea had used a logo closely resembling Louis Vuitton’s well-known four-petaled floral trademark without authorization. The court ordered the company to pay 10 million yuan for economic losses and an additional 300,000 yuan to cover reasonable litigation expenses.

In addition to the monetary award, the court directed Molly Tea to publish a public statement across its six official media platforms to address the negative impact of the infringement. The company has also replaced the disputed black-and-white logo on its online mini-program with a redesigned colored version.

Molly Tea has announced that it intends to appeal the decision.

Trademark Dispute Began in 2024

The trademark dispute began when LVMH filed a civil lawsuit on May 15, 2024, alleging that Molly Tea’s logo closely imitated Louis Vuitton’s iconic floral monogram. During 2024, Molly Tea submitted several trademark applications covering floral logo designs for restaurant and food services. According to China Daily, most of those applications were rejected by the China National Intellectual Property Administration, with only a trademark incorporating the Chinese characters for “Molly Tea” ultimately being registered.

The case generated widespread discussion on Chinese social media platform Weibo. Some users argued that the two companies operate in entirely different industries or that similar floral designs have existed in traditional Chinese culture for centuries. Others maintained that Molly Tea’s logo immediately evoked the Louis Vuitton brand.

Growing Focus on Trademark Protection

Although the US$1.5 million award is considerably smaller than some early reports suggested, the judgment reflects China’s continued willingness to enforce trademark rights involving internationally recognized brands.

The decision comes amid broader efforts by Chinese authorities to strengthen intellectual property protection as the country seeks to promote innovation, improve international trade relations, and encourage stronger brand development.

Luxury goods companies, including producers of premium wines and spirits, have long identified China as a major market affected by counterfeiting. Counterfeit alcohol, luxury products, packaging, labels, and branding remain significant concerns for rights holders, with sophisticated networks often producing products that closely resemble genuine goods.

Earlier this year, Treasury Wine Estates obtained more than US$10 million in damages after prevailing in a long-running Chinese trademark dispute involving a wine brand accused of imitating its Penfolds branding.

Molly Tea’s Global Expansion

Founded in 2021, Molly Tea has expanded rapidly and says it now operates more than 2,000 stores worldwide. The company has established locations in the United States, Canada, Australia, the United Kingdom, Thailand, Indonesia, and Singapore.

The Louis Vuitton judgment adds to a growing body of Chinese trademark decisions reinforcing the protection of well-known international brands and underscores the legal risks businesses face when adopting logos or branding that may create consumer confusion with established trademarks.