On July 27, 2026, Funto Law Firm, representing Guangdong Dongtai Hardware Precision Manufacturing Co., Ltd. (广东东泰五金精密制造有限公司) in a retrial trademark infringement case against Lu (路), Liu (刘), Wang (汪), Foshan Gu Hardware Co., Ltd. (佛山市固某有限公司), Chen (陈), and Fuzhou Jin Company (福州市晋某有限公司), obtained a favorable retrial judgment from the Guangdong High People’s Court (广东省高级人民法院) [(2026) Yue Min Zai No. 121]. The court revoked the relevant findings of the second-instance judgment, upheld the first-instance judgment, confirmed the application of two times punitive damages, fully supported the damages claim, and ordered all defendants to bear joint and several liability, successfully holding all parties involved in the infringement chain accountable.

 

The retrial primarily focused on two issues: whether punitive damages should apply and how liability should be allocated among the defendants. After a comprehensive review of the facts, the retrial court issued a decision featuring several notable findings:

 

First, with respect to punitive damages, the Guangdong High People’s Court (广东省高级人民法院) examined the statutory requirements for their application, including the defendants’ bad faith and the severity of the infringement. The court found that the evidence demonstrated serious subjective bad faith, an infringement-driven business model, and large-scale infringement activities. Based on multiple mutually corroborating calculation methods submitted by the plaintiff, the court determined that the case met the requirements for applying two times punitive damages.

 

Second, the court found that the defendants had engaged in a typical full-chain infringement operation. The defendant couple were involved in trademark applications, licensing, and distribution activities, while the factory defendants carried out large-scale production and nationwide operations. In addition, certain defendants used personal accounts to collect payments. As each defendant played a specific role and cooperated within the infringement chain, the court determined that they jointly committed the infringement and ordered them to bear joint and several liability. The court therefore fully supported the plaintiff’s claim for RMB 5 million in damages and RMB 200,000 in reasonable enforcement expenses.

 

This retrial decision represents a significant judicial response to organized “free-riding” and brand imitation schemes. It provides a reference for cross-class protection of well-known trademarks in the home hardware sector, clarifies the liability boundaries of different infringing actors—including trademark squatters, jointly operating family members, and parties concealing funds through personal accounts—and demonstrates the judiciary’s firm stance against professional and large-scale trademark infringement through the application of punitive damages. The decision further strengthens the protection of DTC’s brand reputation and commercial interests.

 

Funto Law Firm acted as legal counsel for the plaintiff in this matter.