China Molly Tea’s US$1.5 million Louis Vuitton fine sparks fierce debate, customer support

After a Chinese milk tea brand was ordered by a Suzhou court to pay Louis Vuitton 10.3 million yuan (US$1.5 million) for trademark infringement, many internet users expressed their support for the mainland company, with some claiming they have lost their positive impression of the luxury brand following the case.The news of the verdict, announced in early July, has been viewed 400 million times on Weibo, alongside a hashtag “Molly Tea lost the lawsuit but won the public’s heart,” which attracted more than 30 million views.According to the Suzhou Intermediate People’s Court in eastern China’s Jiangsu province, the Shenzhen-based brand Molly Tea must pay the amount within 10 days for damages resulting from its logo, which closely resembles LV’s four-petalled floral monogram.Molly Tea has announced its intention to appeal, as reported by Shandian News.The court stated that LV’s monogram trademark enjoys a high level of global recognition and distinctiveness.The Chinese milk tea chain Molly Tea’s four-petal blossom logo closely mirrors the precise geometric and symmetrical structure of the iconic Louis Vuitton flower. Each distinct component within the LV pattern carries its own specific origin and aesthetic meaning. Photo: HandoutSince 2022, Molly Tea has submitted 17 trademark applications, including the disputed monogram pattern, to the China-national-intellectual-property-administration" class="entity-link entity-organization" data-entity-id="161137" data-entity-type="organization">China National Intellectual Property Administration, but all were rejected.The authority informed the company multiple times that LV had already registered the design in China.Molly Tea has experienced remarkable growth in recent years, utilising the monogram pattern on its stores. The company now operates over 2,300 outlets worldwide, including in North America, Europe, and Southeast Asia.Based on the records of the rejected trademark applications, the Suzhou court ruled that Molly Tea infringed LV’s trademark with “significant malicious intent.”Molly Tea has more than 2,300 stores across the globe, and the image above shows the opening of a new outlet in Bangkok. Photo: HandoutConsequently, a serious verdict involving a substantial financial penalty was issued, according to the court.However, many people in China struggle to comprehend the verdict. They defended the milk tea company, asserting that the two brands operate in entirely different industries.“Why does LV bother to sue Molly Tea, which sells a cup of milk tea for only 15 yuan (US$2.2)?” read one internet user’s comment, which garnered 2,000 likes.“It is a classic case of the big bullying the small,” another user added.Further ReadingSome individuals argued that LV’s monogram pattern is comparable to a flower design commonly found on windows and musical instruments in ancient China.The pattern, known as bao xiang hua, combines the shapes of peony and lotus flowers, serving as an auspicious symbol.On July 6, Molly Tea announced a donation of one million yuan (US$150,000) to Hengzhou, a small city in the Guangxi Zhuang autonomous region in southwestern China, which was recently devastated by a typhoon.The freshly made milk tea sector is a massive market in mainland China, and Molly Tea has emerged as one of the country’s most beloved brands. Photo: HandoutThis philanthropic action has further endeared the company to the mainland public.Hengzhou is dubbed the World’s Jasmine Capital, producing 80 per cent of jasmine flowers in China and 60 per cent globally. It also serves as the primary jasmine flower source for Molly Tea.The company is the first in the milk tea sector to respond with a charitable initiative for the flood-affected region.The following day, its rival Mixue pledged a donation of 10 million yuan (US$1.5 million).Netizens in China praised Molly Tea for its efforts.“I am so touched. They are in the rain, yet still take the initiative to hold an umbrella for others,” remarked one online observer.“Thank you, Molly Tea. I must support you because the money I spend on my milk tea will become essential resources for those in the disaster area,” said another commenter.