In Nike International Limited (NIL) v. Campomar S.L. (Campomar), the former filed an action to cancel a registration of the NIKE mark obtained by the latter to cover goods in International Class 3 (perfumes and cosmetics). NIL argued that their NIKE mark was recognized as one of the ten most famous trademarks in the world, that it was well-known to the public and that it had become a household name to Chinese consumers in the PRC.

During 1985 and 1986 Campomar approached NIL for support in developing perfumes and cosmetics under the NIKE mark and NIL refused, warning Campomar in effect not to embark on this project. Campomar filed an application in 1988 for the NIKE mark in Class 3 which was allowed by the Chinese Trademark Review and Adjudication Board (TRAB). NIL then filed a petition with the TRAB to cancel Campomar's registration based on Article 6bis of the Paris Convention and various provisions of the Chinese unfair competition and trademark laws.

Campomar argued that their registration for the NIKE mark gave them the exclusive right to use the mark in respect of perfumes and essential oils and that, although the NIKE mark was well-known for footwear, this did not give NIL any rights in the NIKE mark in respect of perfumes.

The TRAB held that, as a result of NIL's continuous and concerted efforts for many years, their NIKE mark had become well-known among the Chinese public, that the goods of Campomar and NIL were used by consumers in their daily lives and that the public was likely to be confused as to the origin of NIKE perfumes. It was further held that Campomar's perfumes were not well-known, that their action constituted unfair competition and that it would cause "unhealthy social influences". Campomar's registration was canceled in a final decision issued by the TRAB on September 7, 1995.

We believe that this is a significant decision since the TRAB extended protection to a well-known mark in China beyond the goods with which it is ordinarily associated.