December 5, 2024 Copyright ©️ 2024 by goldkeen International Patent & Trademark Joint Office
Since 2003, Karuizawa has opened more than five locations across Taiwan.
Why has it still been unable to obtain exclusive trademark rights?
In 2019, the case escalated to litigation, but the Supreme Court still ruled that the term lacked distinctiveness—because “Karuizawa” is a geographical name in Japan.
According to the notification of preliminary rejection by the Taiwan Intellectual Property Office (TIPO):
“Karuizawa” is a well-known summer resort near Tokyo, Japan, and is a popular destination for both domestic and international tourists. With the current development of internet technology, rapid cross-border information flow, and the prevailing trend of Taiwanese people traveling to Japan, "Karuizawa" is widely recognized as a famous Japanese tourist spot. Therefore, using it as a trademark could easily cause misunderstandings regarding the origin of ingredients or mislead consumers about product quality.
There was a peculiar point in the case:
The brand had conducted a market survey, intending to show that “consumers clearly associate the name with their brand.” However, the court analyzed the evidence as follows:
- The questionnaire stated it was a “survey regarding dining in Taichung restaurants,” and
- The responses included comments like “hope for group discounts when booking,” “the pickled mustard in the hotpot is too salty,” and “why can’t we get tea refills?”
It was discovered that the survey had been conducted inside the hotpot restaurant itself. Therefore, the court determined that the consumers naturally knew it was “Karuizawa,” and the evidence was inadmissible.
This case is unfortunate, as most people in Taiwan probably do recognize Karuizawa as a hotpot restaurant originally founded in Yuanlin.
If you wish to expand your brand through franchising and don't want other operators to ride on your brand's coattails, your headquarters must begin with trademark registration. This ensures that future franchise contracts can legally bind franchisees and justify royalty collection.
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