In recent years, with the accelerated international expansion of Chinese companies, overseas trademark disputes have become increasingly prevalent, posing a significant barrier for businesses venturing abroad. The trademark lawsuit involving Luckin Coffee in Thailand is a prime example of this phenomenon. This article provides a detailed analysis of Luckin Coffee’s trademark situation, delves into the series of cases involving counterfeit Luckin Coffee entities and the 50R Group in Thailand, and distills lessons learned by Chinese enterpriseson overseas trademark protection. It also proposes practical solutions to assist companies in safeguarding their trademarks effectively abroad.

Luckin Coffee’s Trademark Situation
As a frontrunner in China’s coffee industry, Luckin Coffee’s trademark protection has garnered significant attention. Luckin Coffee’s distinctive trademark, featuring a deer head, is highly recognizable and commands  substantial market influence and reputation. However, this highly recognizable trademark has faced malicious trademark squatting overseas.

Luckin Coffee (Image Source: Internet)

As early as 2020, Thailand’s "Royal 50R" company maliciously registered the “Luckin Coffee” trademark in Thailand, making slight adjustments to Luckin Coffee's iconic "deer head" logo by mirroring it to face left and launching the brand as "Thailand Luckin." This detected mark was discovered during the advanced search when Luckin Coffee intends to file their own mark to oversea marketplaces, which leads Luckin Coffee to file a trademark infringement lawsuit in Thailand.

Thailand's "Royal 50R" Coffee (Image Source: Internet)

The Trademark Series of Cases Involving Fake Luckin Coffee and the 50R Group in Thailand

The emergence of fake Luckin Coffee in Thailand complicated the trademark lawsuit for Luckin Coffee in Thailand. This counterfeit brand not only closely resembled Luckin Coffee in its trademark design but also emulated store decoration, product pricing, and packaging, misleading the public to believe that Luckin Coffee had entered the Thai market.

However, upon discovering the existence of the counterfeit Luckin, Luckin Coffee swiftly issued an official announcement denying that they had opened stores in Thailand and would take legal actions against the evident malicious registration by utilizing the high reputation of Luckin Coffee Yet, the outcome of this cross-border trademark case was unexpected.

In the first trial, Luckin Coffee won as expected, and the Thai counterfeit brand was ruled as trademark infringement. However, the counterfeit Luckin appealed with the High Court, and in the second trial, the decision was reversed surprisingly, with Luckin Coffee ultimately losing the case. This unfavorable outcome shocked both Luckin Coffee and all the lawyers in IP field.

Behind the Thai counterfeit Luckin Coffee is the Thailand 50R Group, a Thai local enterprise engaged in various business fields, including retail, renewable energy, tourism, real estate, and food and beverage, etc.. However,According to records from Thailand’s Ministry of Commerce, Luckin Coffee Thailand was initially registered as Siam North Group in 2019, later renamed Luckin Coffee Thailand. In 2023, the Royal 50R Group was established, making Luckin Coffee Thailand a subsidiary of this "royal company."

It is noteworthy that while this “royal company” is owned by Chinese shareholders (49%) and Thai shareholders (51%), its actual management and operations are predominantly handled by Chinese stakeholders.

After Luckin Coffee’s loss in the second trial, the counterfeit Luckin escalated the situation by filing a high-profile lawsuit against Luckin Coffee for "defamation," seeking damages of 10 billion baht (about 2 billion RMB). This development has not only placed Luckin Coffee in a passive position but also prompted a deep reflection on overseas trademark protection among Chinese businesses.

Lessons Learned for Chinese enterprisesin Overseas Trademark Protection

Although the lawsuit outcome is unfavorable, Luckin Coffee’s trademark lawsuit in Thailand could still serves as a wake-up call for Chinese enterprises on the importance of trademark protection abroad, especially:

1.    Prioritize Overseas Trademark Registration: For Chinese enterprises aiming to “go out for global,” trademark registration in target overseas markets must precede market expansion, with a "trademark first, product second" approach. This will be significant and helpful to effectively lower the risk of malicious trademark squatting and provides legal assurance for future market development.

2.    Establish a Trademark Alert Mechanism: We generally suggest considering the long-term global trademark monitoring and set up a trademark firewall to promptly detect cases of overseas trademark squatting, which will be important for the Chinese enterprises to promptly take actions to stop the infringement and lower the loss.  

3.    Proactively Defend Rights: If faced with overseas trademark squatting or infringement, Chinese enterprises should respond proactively, analyzing the situation to select the most advantageous resolution for their overall growth. Understanding the legal systems of the country where the dispute occurs is crucial to navigating the issue effectively.

4.    Utilize Professional Platforms: Kangxin IP Platform (eservice.kangxin.com) as the leading IP firm in China, is specialized to offer comprehensive trademark asset management and protection strategy with coverage of  trademark searches, registration, and monitoring to opposition, change of ownership, IP transaction, and renewal, enforcement and litigation, etc..  This not only increases the likelihood of successful trademark registration but also lowers the costs of defending rights. On Kangxin IP Platform, Chinese enterprises could be able to achieve real-time monitoring and efficient trademark management services, effectively minimizing the risk of infringement.

Although Luckin Coffee’s trademark case in Thailand ended in a loss, it provides valuable lessons for Chinese enterprises in overseas trademark protection. By prioritizing overseas trademark registration, establishing a trademark alert system, proactively defending rights, and leveraging professional platforms, Chinese enterprises could be entitled to effectively mitigate trademark risks in overseas markets and support their international expansion.