The Back Of "Wang Laoji" Trademark Case:Related Research Of Enterprises’ Goodwill

Known as a trademark case in China,"Wang Laoji" trademark dispute in legal circles set off a wave of trademark licensing system climax. Guangzhou Pharmaceutical Group won in court at last, the JDB under the investor in Hong Kong, Hong Dao Group cannot use "Wang Laoji" trademark any more. Establishment of the basis of "Wang Laoji" trademark brand recognition, however, is its goodwill, that gradually over the years built up a good reputation of masses and brand value, rather than merely authorized national trademark registration behaviour. The goodwill of "Wang Laoji" trademark, is mainly due to the Hong Dao Group. This paper mainly discusses the relationship between trademarks and goodwill, especially in the case of trademark license, Licensed companies create goodwill contacted with the enterprise itself, rather than with a trademark which is licensed to use. The author tries to start from the study of the relationship between trademarks and goodwill. Trademarks do not have close-in relationship with goodwill. Even though licensing companies stop using the trademark, they still hold their own creation goodwill in theory. In addition, when trademarks of goodwill carried by creators and the owner of the trademark is not the same, we should give recognition and protection of legitimate rights or interests of the real creator in order to truly achieve the fairness and justice of the law.Therefore, the current series of trademark law on the laws and regulations need to advance with the times, in order to encourage and maintain good faith to ensure the fair in the field of trademarks. Only when the trademark system play the positive role can we promote China’s economic and sustainable development.The first part of the article describes the whole process of the "Wang Laoji" trademark dispute. Guangzhou Pharmaceutical Group won in court at last, the JDB under the investor in Hong Kong, Hong Dao Group cannot use "Wang Laoji" trademark any more. This result immediately set off a wave of trademark licensing system climax in legal circles. The author then leads to one of the core issues of the article, when trademarks of goodwill carried by creators and the owner of the trademark is not the same, we should give recognition and protection of legitimate rights or interests of the real creator.The second part of the article describes that Hong Dao Group’s lose the right to use trademarks, but on the other hand, achieve a high degree of market acceptance after the dispute. The author leads to the core of the question of the relationship between trademarks and the goodwill of this article through a case-by-case, playing a connecting role on the next two parts.The third part of the article mainly analyses trademarks and goodwill respectively. Firstly, the author analyses trademark, starting from the boundaries of the generation mechanism of the trademark,to get the conclusion that source of the value of trademark is the enterprise use of the mark in commercial transactions. Followed by analysis and explosion of the right of goodwill, the concept and the main features of goodwill, the author achieves the conclusion that the goodwill is the core of trademark protection and unfair competition, playing a connecting role on the next parts.The fourth part of the article is the relationships between trademarks and goodwill. Firstly,the author analyses that trademark is the carrier of goodwill, the goodwill carries value of the trademark. In addition,goodwill links with the enterprise closely rather than the trademark only. The author calls on people to go beyond the traditional concept of misunderstanding of the relationships between trademarks and goodwill at last.The fifth part of the article analyses the legal significance of the relationship of goodwill and trademarks.The author tried to explore through a combination of current research results in judicial practice to give the relevant reference and play a positive role in other similar conflict disputes.The last part of the article is the conclusion. The author describes each part of the article again and re-emphasizes the conclusion we get in the "Wang Laoji" trademark case. The author also calls on people to ensure fair in the field of trademarks and maintain good faith in the business activities, in order to promote the sustainable development of China’s economic and social health.