Under Chinese Trademark Law, a trademark owner with products belonging to different classes under the Nice Classification must register its trademarks separately in each class. Wang Jun, an apparel dealer in Wuhan, had discovered that while Louis Vuitton had registered its trademarks
for such products as apparel, leather products, jewelry and precious metals while leaving the product patent in China void and empty. Wang then successfully registered the trademark "LOUYIVEITEN" and, in late 2003, obtained a patent on a package design similar to that of LV's handbags.
In 2004, LV requested the Chinese State IP Office to invalidate Wang Jun's patents on the grounds that the pattern elements of Wang Jun's design are largely LV's world famous patterns; since LV had long ago registered its trademark in China, LV posited that Wang's patent was in conflict with LV's priority right. The Chinese IP Office ruled that LV did not provide sufficient evidence and refused to invalidate Wang's patents.
Wang has offered to sell the patent to LV for US$17.5M or, alternatively, for a consideration of 1 yuan and the grant of an exclusive franchise in Wuhan. LV has refused to do so, and its future in the Chinese market is currently uncertain.
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