The Dispute Between the Two "Crocodile" Settled

Recently, the French garment firm La Chemise Lacoste and the Hong Kong-based Crocodile Garments Ltd. have reached conciliation on their trademark dispute over the similar "crocodile" marks.

The conciliation, which was approved by the Beijing High People's Court, marks the first ever ending of the years-long lawsuit put forward by the French firm against the Hong Kong-based Crocodile.

According to the agreement, Hong Kong-based Crocodile can use its current "crocodile" mark until March 31, 2006, when a new mark should be used on the condition that the new mark should not use the green color as used in both the Lacoste's "crocodile" and the Hong Kong's "crocodile". Lacoste agrees to waive all of its claims.

"The win-win agreement will lay the solid foundation for the intellectual property rights protection of both sides, as well as helping to protect our interests in the Chinese market," said a joint declaration released after the conciliation was approved. The declaration also vowed that the two companies would launch joint efforts to fight against pirated products and seek full support from the Chinese government and judicial organizations.

Established in 1933, Lacoste has its device mark "crocodile" registered in over 190 countries and regions, including the registration in China in 1980. However, when Lacoste began to sell its products in 1970's in Hong Kong and Mainland China, serious trademark dispute arose between Lacoste and the Hong Kong-based Crocodile, which obtained trademark registration on a similar mark in 1950's. Thereafter, trademark war continued between the two companies. In 1998, Lacoste initiated a lawsuit against the Hong Kong-based Crocodile and a Beijing garment company with the Beijing High People's Court claiming damages of 3.5 million Yuan (US$423,000).

In spite of the settlement between the two parties, other lawsuits are ongoing at the Beijing High People's Court and the Beijing No. 2 Intermediate People's Court, including a similar lawsuit against a Singapore-based Crocodile and other Chinese companies based on trademark infringement and unfair competition.