The Transliteration Trap
"新百伦" (Xīn Bǎi Lún) is the commonly used Chinese transliteration of "New Balance" — literally "New Hundred伦." A Chinese individual named Zhou Yuelun registered this Chinese name as a trademark and then sued New Balance for infringement when the company continued using it.
New Balance had been using "新百伦" in Chinese marketing for years but never registered it as a trademark. The squatter filed first.
How the Tables Turned
Unlike most trademark squatting cases where the original brand sues the squatter, this case was reversed. Zhou Yuelun — the trademark owner — sued New Balance for trademark infringement.
The Guangzhou Intermediate People's Court ruled in Zhou's favor in 2016, ordering New Balance to pay ¥5 million (approximately $730,000) in damages. The court found that New Balance had knowingly used the "新百伦" mark without authorization.
The ultimate irony: New Balance paid millions in damages to a person who had never sold a single shoe — for using a Chinese name that New Balance itself had popularized.
Key Lessons
- Chinese transliterations are separate trademarks. Your English name registration doesn't protect the Chinese version.
- Squatters can sue you. In China's first-to-file system, the registered owner has the right to sue — even if they're the squatter.
- Using a name without registering it creates risk. New Balance built brand recognition for "新百伦" and then lost it.
- Court-ordered damages are real. ¥5 million was paid to the squatter, not to New Balance.
- Register all language versions simultaneously. English, Chinese characters, and phonetic transliterations should all be filed together.
How RTMCN Prevents This
At RTMCN, we file trademarks for all relevant language versions of your brand — English, Chinese characters, and phonetic transliterations — in a single application. Our search process identifies existing registrations and potential squatters before they become your problem.
New Balance's mistake was assuming that using a Chinese name without registering it was safe. It wasn't. Register before you use.