The decision is part of a case brought by Nike against
Cidesport, a company which owns rights to the use of the word
'Nike' in Spain.
As early as 1932, Cidesport registered a trade mark in Spain
consisting of the image of a well known sculpture, and a small
caption containing the word 'Nike'. The company did not use the
mark for decades. In the 1980s, Cidesport became licensee and
distributor for Nike in Spain.
In 1990, Nike obtained registration for its well known mark in
Spain. In the same year Cidesport, which marketed stockings and
socks under the Nike mark, extended its registration to include
sportswear. At that point the US giant terminated its licensing
agreements with Cidesport and sued Cidesport in the US for trade
mark infringement.
Cidesport, on the other hand, filed a counter-suit in Spain, and
also applied to have Nike's Spanish trade mark registration
cancelled. In retaliation, Nike counter-applied in Spain to have
Cidesport's trade mark revoked.
The dispute ended in 1999, when the Spanish Supreme Court
asserted Cidesport's right to use the Nike mark in Spain. The
ruling, however, allowed the US company to use the Nike name and
its swoosh logo to market shoes in Spain, because Cidesport does
not manufacture footwear.
The latest dispute arose from the fact that Cidesport
manufactured its own Nike branded goods in China, where the US
giant has registered its Nike mark.
Following a complaint by Nike, a Chinese court has apparently
ruled that not only the selling, but also the manufacturing of
Cidesport's goods is breaching the country's trade mark laws, even
though the company planned to sell the goods solely in Spain.
Cidesport is reportedly planning to appeal the ruling.
The case has raised interest among western manufacturers wanting
to protect their intellectual property in China, where many fake
goods illegally bearing their marks are manufactured.
