The Suzhou Intermediate People’s Court ordered Chinese tea chain Molly Tea to pay Louis Vuitton 10.3 million yuan (US$1.5 million) in damages for trademark infringement. The ruling requires the Shenzhen-based company to pay 10 million yuan for economic losses and 300,000 yuan for litigation expenses within 10 days after the court found Molly Tea used a logo similar to the French luxury brand’s four-petalled floral monogram.
Why did Molly Tea lose the trademark lawsuit?
The court determined that Molly Tea’s branding infringed upon a monogram pattern Louis Vuitton had already registered in China. According to the China National Intellectual Property Administration, trademark applications filed by Molly Tea in 2024 were rejected and placed under review due to these conflicts.
The legal battle began on May 15 last year, as documented by the Chinese corporate information provider Tianyancha. While some Weibo users argued that the two brands operate in different industries, the court ruled that the similarity of the logos created an infringement.
What happens to Molly Tea’s brand presence now?
Beyond the financial penalty, the court imposed a public “remedy” to eliminate the negative impact of the infringement. Molly Tea must post a formal statement on the homepages of six official accounts. These include its website, mini-program, and profiles on Weibo, WeChat, RedNote, and Douyin.
Molly Tea, founded in 2021, has scaled rapidly. The company stated it operates more than 2,000 stores globally, including locations in the United States, Canada, Australia, the United Kingdom, Thailand, Indonesia, and Singapore. This global footprint increases the risk of further intellectual property disputes if branding is not standardized.
How are luxury brands protecting IP in China?
Luxury houses like Louis Vuitton are increasingly using Chinese courts to protect their registered trademarks against “look-alike” branding in non-competing sectors. This case demonstrates that operating in a different industry—tea versus luxury fashion—does not provide a legal shield if the visual identity is too similar to a registered monogram.
The scale of the damages (10.3 million yuan) serves as a signal to other fast-growing “new tea” brands that intellectual property enforcement in Jiangsu province and beyond is becoming more stringent.
Frequently Asked Questions
How much does Molly Tea have to pay?
The Suzhou Intermediate People’s Court ordered a total payment of 10.3 million yuan (US$1.5 million), split between 10 million yuan for losses and 300,000 yuan for legal costs.
Is Molly Tea accepting the court’s decision?
No. Molly Tea stated it plans to file an appeal against the ruling.
Where does Molly Tea operate?
The chain has over 2,000 stores worldwide, with a presence in China, the US, Canada, UK, Australia, Thailand, Indonesia, and Singapore.
What do you think about the court’s decision? Should luxury brands be able to protect logos across completely different industries? Let us know in the comments below or subscribe to our newsletter for more updates on global IP law.
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