The Luxury Name Grab

Hermès — the French luxury house behind the Birkin bag and silk scarves — discovered that a Chinese company had registered "爱马仕" (Ài Mǎ Shì), the widely recognized Chinese transliteration of "Hermès." The Chinese company didn't just sit on the trademark; it actively used the name, selling products and building a business around it.

For a luxury brand whose value depends on exclusivity and control, having a third party profit from your Chinese name is an existential threat.

How It Happened

As Hermès expanded its presence in Asia, Chinese consumers naturally adopted "爱马仕" as the brand's Chinese name. However, Hermès did not register this transliteration as a trademark in China early enough. A Chinese company recognized the opportunity and filed the registration first.

The squatter's company then operated openly under the "爱马仕" name, creating confusion among Chinese consumers about which products were authentic Hermès and which were from the registered entity.

Hermès initiated legal proceedings to reclaim its Chinese name. The case wound through the Chinese court system for years, involving complex questions about:

  • Whether a foreign brand's well-known Chinese transliteration constitutes a prior right
  • Whether the squatter acted in bad faith
  • The extent to which consumer confusion justified cancellation

China's Supreme Court ultimately ruled in Hermès' favor, recognizing the strong association between "爱马仕" and the French luxury house. The ruling established that well-known foreign brands could claim rights to their widely recognized Chinese transliterations — even without prior registration.

Not every brand gets this outcome. Hermès won because it was globally famous enough for the court to recognize the association. Smaller brands without global recognition would likely lose the same case.

Key Lessons

  • 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.
  • Fame alone doesn't protect you. Even Hermès — one of the world's most recognized luxury brands — had to fight for years in court.
  • Register before you're well-known. If Hermès had registered "爱马仕" when it first began using the name in Chinese contexts, the entire litigation would have been unnecessary.
  • Years of litigation drain resources. Even for Hermès, the legal battle consumed years of management attention and legal fees.
  • Prevention is always cheaper than litigation. A trademark filing costs a few hundred dollars. Years of Supreme Court litigation costs millions.

How RTMCN Prevents This

At RTMCN, we help luxury brands register all relevant Chinese names — official transliterations, commonly used names, and phonetic variations — before they become targets for squatters. Our trademark search identifies existing registrations and our filing process ensures your brand's Chinese identity is protected from day one.

Don't wait until you're famous enough for a squatter to notice. Register your Chinese name before you enter the market.