The Infringement Problems For Use Of Trademarks In OEM

Abstract:China’s economic structure and abundant labor bring the prosperity of the labour-intensive industry, which makes China become an indispensable part of world production networks. As an important trade form, OEM is developing rapidly in domestic coastal area. It brings enormous benefits to the development of Chinese foreign trades, as well as poses many legal problems, particularly the issues on trademark infringement. However, according to the principle of prudence, the Supreme Court of China hasn’t given a specific standard so far. This issue is always in dispute. According to some relevant laws on trademark protection, partners participating in the trade should obey the principles of loyalty and interests balance which is specified by the Trademark Act. At the same time, it should concern more about the principles of territoriality and confusion which is emphasized by the Trademark Act. This essay introduces the obligations and benefits of partners cooperating in the OEM trade, and then analyzes some classical cases on trademark infringement in OEM trade. Finally, by studying if this kind of trade behavior will be the largest factor which influences the principles of territoriality and confusion, we can figure out how to avoid this kind of infringement.