Thailand's Luckin Coffee Demands 2 Billion RMB Compensation from China's Luckin Coffee, Thai Lawyer Explains Luckin Coffee's Defeat in Lawsuit
-
According to China Qiao Wang citing Thailand Headlines News, multiple Thai media outlets reported that on the morning of the 19th, Thailand's Royal 50R Group (50R group) formally filed a lawsuit in court, demanding that China's Luckin Coffee compensate for economic losses amounting to 10 billion Thai Baht (approximately 2.046 billion RMB). The court has accepted the case for review.
Thailand's Luckin Coffee Demands 2 Billion RMB Compensation
According to the report, Thailand's Royal 50R Group stated in the documents submitted to the court that it had legally registered the Luckin trademark with Thailand's Ministry of Commerce as early as 2020. Everything was done in accordance with Thai legal rules and procedures, and it was approved to use the trademark to operate a coffee shop business selling beverages such as tea and coffee. However, China's Luckin Coffee later filed a lawsuit with the Central Intellectual Property and International Trade Court, accusing 50R Group of maliciously registering the trademark, which was contrary to the facts. The primary court ruled against the defendant. However, 50R Group believed the ruling was unfair and submitted a rebuttal to the court, which resulted in a victory on December 1st of this year.
The complaint from Thailand's Royal 50R Group further states that before the court's final verdict, Chinese Luckin Coffee had repeatedly forced the plaintiff to stop using the trademark and frequently seized their properties, causing significant economic losses. The 50R Group also incurred substantial legal expenses and is demanding the court order Luckin Coffee to pay a total compensation of 10 billion baht (about 2 billion RMB).
It's worth noting that in August 2022, Luckin Coffee issued a statement declaring: "Fake! Luckin Coffee has not opened any stores in Thailand. The so-called Luckin stores in Thailand are counterfeit."
Additionally, according to First Financial reports, Luckin Coffee had previously sued related infringing parties in 2021.
On November 24, 2022, the Thai court announced the first-instance judgment, ruling in favor of Luckin Coffee China and ordering the cancellation of the relevant trademark registration, as well as instructing the two defendants to cease using the trademark. The defendants filed an appeal on March 24, 2023, and the case was heard again on November 30, 2023, but the Thai court system has not disclosed the outcome of the appeal.
Thai Lawyer Interprets Luckin Coffee's Defeat
Recently, Thai Luckin claimed on overseas social media that Luckin had failed in its legal rights protection in Thailand. Thai Luckin Coffee cited a media report, pointing out that several Thai media outlets reported that on December 1, the Central Intellectual Property and International Trade Court of Thailand announced the final judgment in the case where Chinese Luckin Coffee accused Thai 50R Group of trademark infringement, stating that Luckin Coffee lost the case.
According to Red Star News, on December 5, legal experts from the Mandarin Law Firm in Bangkok, Thailand, told reporters that after their inquiry, both the Thai Royal 50R Group and its subsidiary Thai Luckin Coffee Co., Ltd. are Sino-Thai joint ventures. The main reason for Luckin Coffee's defeat in the case was that the Thai version of Luckin was the first to register and use the trademark locally.
“Since there is no trademark cooperation agreement between China and Thailand, according to Article 63 of Thailand's Trademark Law, if Thai Luckin registered this trademark first with the Thai Trademark Office, it has the right to conduct business in this field in Thailand. This is the reason Luckin lost the case,” said Manager Tian from the Legal Department of Thailand Wenhua Law Firm. He mentioned that if Chinese Luckin appeals to Thailand's Intermediate Court, proving it used the brand earlier globally and has greater influence, the court might reconsider the previous ruling. Manager Tian suggested that Chinese Luckin could privately negotiate with the other party to acquire the trademark ownership through purchase.
Records show that Thailand's Royal 50R Group is mainly engaged in retail, new energy, tourism, real estate, catering, and other businesses. Its subsidiary, Thai Luckin Coffee Co., Ltd., legally registered the Luckin brand trademark in Thailand and has now developed and operated more than a dozen Luckin coffee shops in Thailand. Regarding online rumors about the group's background, Red Star News learned from relevant sources at Thailand's Internal Security Operations Command (ISOC) that in Thailand, any company can register and use the word “Royal,” and the Thai military does not hold shares in private companies in its name, nor does it invest in any company.
So, how strict is Thailand in cracking down on illegal trademark registrations? Manager Tian stated that Thai law also targets malicious trademark squatting, but since he has not seen the case files, he cannot determine whether Thai Luckin Coffee engaged in malicious squatting based solely on media reports.