Chinese Court Orders 幸猫咖啡 to Pay $700k for Copying Luckin Coffee’s Brand Identity
Shenzhen court imposes 5 million yuan ($700,000) penalty against 幸猫咖啡 (Lucky Cat Coffee) for systematically copying Luckin Coffee’s branding. Landmark ruling demonstrates China’s strict enforcement against brand imitation with punitive damages.
Court Delivers Landmark Decision on Brand Copying
Guangdong High People’s Court recently highlighted a significant intellectual property case where Shenzhen Futian Court ordered 热某公司 (Re Company), operator of 幸猫咖啡 brand, to pay Luckin Coffee 5 million yuan in damages. Judicial authorities found:
- Systematic replication of Luckin’s branding across physical and digital touchpoints
- Intentional use of confusingly similar logos and color schemes
- Evidence destruction through failure to provide financial records
Contrasting the Coffee Brands
Luckin Coffee (瑞幸咖啡)
- Established 2017
- 10,000+ locations
- Registered trademarks: “LUCKIN COFFEE”, “瑞幸咖啡”
- Distinctive deer logo with blue/white palette
幸猫咖啡 (Lucky Cat Coffee)
- Launched December 2020
- Dozens of franchise locations
- Multiple trademark applications rejected
- Similar cat logo with near-identical color scheme
Court Findings on Trademark Infringement
Presiding Judge Lei Guisen identified key infringement evidence:
Visual Similarity
“The combination of similar animal silhouettes, circular blue backgrounds, and matching usage on cups, storefronts and packaging creates inevitable consumer confusion,” stated Judge Lei.
Intentional Imitation
Re Company had multiple “LUCKY CAT” trademark applications rejected prior to launching operations, demonstrating awareness of potential conflicts.
Comprehensive Copying
Court documented identical branding applications across: store signage • coffee cups • employee uniforms • shopping bags • digital platforms
Damage Calculation Methodology
| Component | Amount | Basis |
|---|---|---|
| Base Franchise Fees | 1.72M yuan | Minimum documented royalties |
| Punitive Multiplier | 3.44M yuan | 2x for willful infringement |
| Legal Expenses | 0.84M yuan | Documented litigation costs |
| Total Penalty | 5 million yuan ($700,000) | |
* Court applied adverse inference due to Re Company’s failure to provide financial records
Market Implications
The ruling signals tighter enforcement in China’s competitive beverage sector:
For Businesses
- Conduct thorough trademark clearance before launch
- Develop distinctive branding elements
- Maintain complete financial records
For Consumers
- Verify authentic branding through official apps
- Report suspected imitation brands
- Check business registration certificates
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Legal Precedents Established
Beijing Zhengli Law Firm Director Zhang Hong highlighted three significant aspects:
1. Contextual Infringement Analysis
“Courts now examine branding application contexts, not just logo designs, when determining infringement.”
2. Evidence Obstruction Penalties
“Defendants face severe consequences for failing to produce financial records during IP litigation.”
3. Punitive Damage Calculations
“This establishes methodology for computing damages in franchise-based infringement cases.”