Ralph Lauren Wins in Taiwan Against Parallel Importer for Unfair Free-Riding

On April 30, 2025, Taiwan’s Intellectual Property and Commercial Court (“IPC Court”) ruled in the favor of The Polo/Lauren Company L.P. (“Ralph Lauren”), finding that although the apparel brand’s trademark rights were exhausted, the parallel importer’s use and presentation of the famous logo “POLO RALPH LAUREN” still constituted unfair free-riding and therefore violated Taiwan’s Fair Trade Act. 

Ralph Lauren sued Jie Sin Trading Co. Ltd. (“Jie Sin”), an importer of foreign brands, for trademark infringement and unfair competition in 2022. According to Ralph Lauren, Jie Sin, without proper license or permission, used Ralph Lauren’s famous trademarks “POLO RALPH LAUREN” (no. 00069730, no. 01686231, and no. 01737294, see below) without authorization in the sale of polo shirts in Jie Sin’s physical store located in S-Outlet, a shopping mall operated by co- defendant ESSE Commerce Development Inc. Ralph Lauren argued that such use would likely cause confusion, and was both deceptive and unfair.

Jie Sin contended that it is a parallel importer lawfully reselling genuine apparel products. All of the clothing sold at its S-Outlet store, according to Jie Sin, was sourced from Ralph Lauren in other countries. Besides, Jie Sin had placed its brand “JS’Maxx” on the store’s signage and banners showing “POLO RALPH LAUREN”, which should be sufficient to help the consumers identify the true source and avoid confusion.

The IPC Court rejected Ralph Lauren’s trademark infringement claim, but found that Jie Sin’s conduct amounted to unfair free-riding:

1.        On the trademark claim, the IPC Court elaborated that per Article 36 of Trademark Act, a trademark owner could not assert trademark right over products that have been lawfully placed in the market by itself or with its consent. Moreover, Taiwan adopts the doctrine of international exhaustion. Unless exceptional circumstances apply, a parallel importer’s resale of genuine products is generally exempt from trademark liability. 

2.        Here, the products sold in Jie Sin’s store were genuine Ralph Lauren apparel purchased abroad and imported into Taiwan. Although Jie Sin’s use of “POLO RALPH LAUREN” constituted trademark use, Ralph Lauren’s trademark rights on these products were deemed exhausted per Article 36 of Trademark Act.

3.        Having said the above, the IPC Court held that Jie Sin’s use of Ralph Lauren’s famous trademarks violated Article 25 of Fair Trade Act. More specifically, according to the guidelines issued by Fair Trade Commission, a parallel importer, even when selling genuine products, must not act in any way that may mislead ordinary consumers to believe that it is the authorized agent or distributor of the brand.

4.        Based on the submitted evidence, although Jie Sin included its logo “JS’Maxx” on the store’s signage, the mark was not as prominent or visible as the eye-catching “POLO RALPH LAUREN” brand. Further, the design of counter, shop window, and product display resembled those of a Ralph Lauren store. Under such circumstance, Jie Sin’s use of the famous “POLO RALPH LAUREN” trademark would mislead ordinary consumers to believe that Jie Sin’s sale of products are licensed by Ralph Lauren, which constitutes a free-ride on Ralph Lauren’s goodwill and reputation. 

(Source: https://2hyperlife.com/shinysun2022/)

Accordingly, the IPC Court ruled that Jie Sin shall cease using Ralph Lauren’s well-known trademarks and pay Ralph Lauren damages proportionate to the profits it earned through its unfair competition. 

 

Source: 111 Ming-Shan-Su-Zi No. 57 https://judgment.judicial.gov.tw/FJUD/data.aspx?ty=JD&id=IPCV,111%2c%e6%b0%91%e5%95%86%e8%a8%b4%2c57%2c20250430%2c1

Source: S-Outlet: https://www.s-outlet.com.tw/dm.php?i=181