Recently, representing Olympus Corporation in a trademark infringement dispute against a Jiangxi-based medical device company, Llinks Law Offices received the first-instance judgment from the JiAn Intermediate People's Court of Jiangxi Province. As neither party appealed, the judgment has officially taken legal effect. This case marks the first judicial precedent in China to determine that the sale of imported second-hand medical devices constitutes trademark infringement, setting a significant industry benchmark.
Case Background: Second-hand Equipment Sold as "Brand New"
In 2021, the defendant sold a set of Olympus-branded electronic gastrointestinal endoscopes to a public hospital through a government procurement contract, which explicitly stipulated the equipment be "brand new." Investigation revealed that the equipment was actually second-hand medical gear previously sold and clinically used in Japan. By delivering second-hand equipment under the guise of being "brand new," the defendant not only violated medical device regulations but also caused substantial damage to the brand reputation of Olympus. The Llinks legal team utilized the Hague Convention procedures to obtain original sales and maintenance records from Japan. Combined with domestic bidding documents and on-site evidentiary photos, Llinks formed a complete chain of evidence to precisely lock in the infringing facts.
Judicial Reasoning: Confirmation of the Trademark's Quality Assurance Function
The Jian Intermediate Court held that a trademark serves not only the basic function of identifying the source of goods but also the derivative functions of guaranteeing product quality and maintaining brand reputation. China explicitly prohibits the importation of used medical devices. The defendant's act of selling second-hand equipment as "brand new" is likely to mislead consumers regarding product quality and damage the goodwill associated with the trademark. The court ruled that such behavior falls under Article 57, Item 7 of the Trademark Law—"causing other damage to another person's exclusive right to use a registered trademark"—and constitutes trademark infringement.
Significance of the Landmark Case: Defining Legal Red Lines for Medical Device Distribution
This judgment marks the first time the judiciary has clarified that the unauthorized importation of second-hand medical devices from abroad and their sale as "new" products may constitute trademark infringement by undermining the quality assurance function of the trademark, even if the products themselves are genuine. This ruling breaks through the traditional boundaries of the "Exhaustion of Rights" principle and draws a clear legal red line for the medical device distribution sector. It demonstrates the judiciary's strict protection of public health and safety and serves as an important model for regulating market order.
In-depth Legal Expertise: Llinks Legal Team Protecting Corporate Intellectual Property
The case was represented by the team led by Llinks partner Ms. Cherri Che. Ms. Che's team has been deeply involved in the field of intellectual property for many years, possessing extensive experience in litigation and non-litigation matters involving patents, trademarks, and trade secrets, and is particularly skilled in handling complex foreign-related evidence. Llinks is committed to building multidimensional "Legal + Commercial" protection schemes for enterprises, continuously providing high-quality legal services for innovative entities.
