The Luxury Giant's China Nightmare

Hermès — the French luxury house behind the Birkin bag and some of the world's most coveted fashion — spent years fighting in Chinese courts to reclaim its own Chinese brand name. A Chinese company had registered the Chinese transliteration "Ai Ma Shi" (爱马仕) and was openly selling products under that name.

For a brand built on exclusivity and heritage, having a Chinese company freely using its Chinese name was more than a legal problem — it was a direct threat to brand value.

What Happened

A Chinese company registered "Ai Ma Shi" (爱马仕) — the widely recognized Chinese name for Hermès — as a trademark in China. The company then operated openly, selling products under this name to Chinese consumers who associated it with the French luxury house.

Hermès had been using its Chinese name in marketing and communications but had not secured the trademark registration in China. When they tried to register, they found it was already taken.

The dispute went through multiple levels of Chinese courts over several years:

Initial challenges: Hermès argued that its Chinese name was well-known globally and that the Chinese registration was made in bad faith.

The complication: China's trademark system doesn't automatically protect unregistered foreign marks unless they qualify as "well-known trademarks" — a high evidentiary bar that requires extensive proof of fame in China.

The outcome: After years of litigation, Hermès eventually succeeded in invalidating the squatter's registration, but the process was lengthy, expensive, and uncertain.

Key Lessons

1. Even the biggest brands are vulnerable. Hermès is one of the most recognized luxury brands in the world. Yet even they couldn't prevent a squatter from registering their Chinese name.

2. "Well-known trademark" status is hard to prove. China recognizes well-known trademarks (驰名商标) that can override prior registrations, but proving well-known status requires extensive evidence of fame, advertising spend, and consumer recognition within China.

3. Chinese names matter for luxury brands. Chinese consumers have strong relationships with Chinese brand names. If a squatter owns your Chinese name, you risk losing brand control in your most important growth market.

4. Years of litigation drain resources. Even for Hermès, the legal battle consumed years of management attention and legal fees. For smaller luxury brands, such a fight could be existential.

5. Register early, register everything. Hermès should have registered its Chinese name the moment it began using it in any Chinese-language context. Prevention is always cheaper than litigation.

The Bottom Line

Luxury brands depend on exclusivity and control. Having a third party use your Chinese name — even selling different products — dilutes brand value and confuses consumers. Hermès eventually won, but the years of uncertainty and legal costs were entirely avoidable.