What the Luckin Coffee Thailand Trademark Ruling Means

A Thai court ruled in favor of Luckin Coffee in its trademark infringement case against a knockoff operator. The court found Luckin holds prior rights to the mark, ordered the defendant to stop using Luckin Coffee-related trademarks, and set damages of 10 million Thai baht plus 100,000 baht per day from March 4, 2024. The cumulative total already exceeds 46 million baht, about 10 million RMB.

The case began in early 2022, when a Chinese tourist photographed a counterfeit Luckin store in Thailand. Luckin then pursued rights protection but lost at first instance in late 2023, drawing wide attention. The defendant, Thailand's Royal 50R Group, had previously registered 191 Chinese trademarks. The ruling stands as a significant step for international coffee brands protecting their marks overseas.

Luckin Coffee's anti-counterfeiting rights protection case in Thailand has gone through twists and turns, and finally a victorious judgment has been reached. In early 2022, a Chinese tourist discovered a counterfeit "Luckin store" in Thailand, after which Luckin continued to carry out rights protection actions, but unexpectedly lost in the first instance at the end of 2023, sparking widespread attention. Now, the latest judgment by the Thai court confirms that Luckin enjoys prior rights to the trademark in question, orders the defendant to stop using the relevant marks, and pay a one-time compensation of 10 million Thai baht plus ongoing compensation of 100,000 Thai baht per day, with the cumulative total already exceeding 46 million Thai baht (about 10 million RMB). The defendant, Thailand's Royal 50R Group, has a complex background and had previously squatted on 191 Chinese trademarks. This judgment marks an important milestone in Luckin's overseas rights protection journey.

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Since a Chinese tourist photographed a counterfeit "Luckin store" on the streets of Thailand in early 2022, Luckin embarked on a long road of anti-counterfeiting rights protection. The lawsuit at the end of 2023 once made Luckin the focus of public opinion due to its first-instance defeat. Now, this long-disputed case of Luckin suing Thailand's "fake Luckin" has finally seen the latest development.

On March 10, a law firm in Thailand disclosed that Luckin's trademark infringement lawsuit in Thailand against the "knockoff Luckin" had received the court's latest judgment, and Luckin Coffee won the case.

According to the judgment results published by the law firm, the court determined that Luckin has prior and superior rights to the trademark in question, ordered the defendant to stop using the registered Luckin Coffee-related trademarks and marks, and required the defendant to pay damages to Luckin Coffee, including a one-time compensation of 10 million Thai baht, as well as ongoing daily compensation of 100,000 Thai baht calculated from the filing date (March 4, 2024). As of press time, the cumulative total compensation in this judgment has exceeded 46 million Thai baht (about 10 million RMB). In addition, the defendant must also bear part of the litigation costs.

Screenshot of the judgment information released by a Thai law firm

According to comprehensive reports by several Thai media outlets, on December 1, 2023, the Central Intellectual Property and International Trade Court of Thailand had made a final ruling on the trademark copyright infringement case brought by China's Luckin Coffee against Thailand's Royal 50R Group (50R group) — ruling that China's Luckin Coffee lost the case, to be executed immediately.

The situation then took a turn. On December 19, 2023, Thailand's Royal 50R Group formally submitted a lawsuit to the court, requesting the court to order China's Luckin to compensate for economic losses of 10 billion Thai baht. The court has accepted the case. In response, China's Luckin helplessly reposted: "I don't understand, but I am greatly shocked!"

As for Thailand's Royal 50R Group, it is said to be a local Thai enterprise engaged in diversified business management including retail, new energy, tourism, real estate, and catering, with backing from the Thai royal family and the military government.

However, information from the Thai Ministry of Commerce's DBD shows that this "royal company" is actually a "China-Thailand joint venture," with Chinese shareholders holding 49% and Thai shareholders holding 51%. Upon inquiry, Thailand's Royal 50R Group has registered a large number of trademarks under its name. In addition to Luckin, these also include well-known brands such as Hive Box, Three Squirrels, Chow Sang Sang, Nongfu Spring, Tesla, Cai Lin Ji, and Zhong Xue Gao, and it has even registered trademarks for famous internet celebrities such as Li Jiaqi, Viya, and Li Ziqi. According to incomplete statistics, a total of 191 Chinese trademarks have been squatted on by this company.

In addition, the original registered name of Luckin Coffee Thailand was Siam North Group, registered in January 2019. It was only changed to Thailand Luckin in May of the same year, and in July it successfully obtained the trademark of the "left-turning deer head" (the genuine deer head faces right).

Since China and Thailand have not signed a trademark cooperation agreement, under Thai trademark law, whoever first files a registration application with the local trademark office and uses it has the right to use that trademark in Thailand for related business in that field. Therefore, in chronological order, 50R Group not only registered the trademark before Luckin, with everything handled in accordance with Thai law and procedures, but also opened dozens of "Luckin Coffee" stores, which were operating normally. This was also the decisive factor in China's Luckin losing the case at that time.

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The above content is compiled by CoffeeHunters, a coffee news website.