If you’re planning to develop a franchise brand, should you start a company first or apply for a trademark first?
A case involving the company “Chuan Ba Zi” is a clear example.
They collected franchise fees of NT$108,000 per spicy hot pot snack store and NT$368,000 per small hot pot restaurant.
In total, they attracted:
‧ 77 “Chuan Ba Zi” spicy hot pot snack stores
‧ 3 “Chuan Ba Zi” small hot pot restaurants
The court calculated the profits from trademark infringement as NT$9,420,000.
Civil Lawsuit:
The actual trademark owner of “Chuan Ba Zi” filed a civil suit.
The court took into account the company’s:
‧ Actual business income of NT$3.59 million
‧ Registered capital of only NT$4 million
As a result, the court reduced the compensation to NT$870,000.
Criminal Case:
The two co-offenders were sentenced to 30 and 59 days of detention, respectively.
Key Takeaway:
If you want to develop your own franchise brand:
#MarketingStartsWithATrademark
Your future franchise agreements will be built upon your brand name, which must be protected first.
Company names can be changed — but trademark rights belong to whoever registers first with the Intellectual Property Office.
Still curious about franchising or trademark registration?
Click below to consult us now,
or search LINE for @goldkeen, or click this link:
https://line.me/R/ti/p/@goldkeen
