In Compagnie Generale des Etablissements Michelin, Michelin et Compagnie (France) (Michelin) v. Toshio Saegusa and K.K. Mishuran (Mishuran), the former, owner of the MICHELIN automobile tire mark, filed an action in the Tokyo District Court for damages and an injunction to restrain use of the trade name MISHURAN in respect of a business selling food products on the grounds that it was confusingly similar to their trademark MICHELIN and that such use constituted unfair competition under the Unfair Competition Prevention Act. Mishuran was established by Toshio Saegusa in April 1991 for the sale of food products, including sandwiches and boxed lunches, and operated a sake bar named MISHURAN represented in three Chinese characters.

The Tokyo District Court held that the MICHELIN trademark was well-known in Japan since at least 1977. The Court further held that the MISHURAN name was in conflict with the well known MICHELIN trademark and that use of the MISHURAN name was likely to cause confusion to the consumer who might be led to believe that the two business had a close relationship. The Court granted Michelin damages and issued an injunction under the Unfair Competition Prevention Act, as well as an order cancelling the MISHURAN trade name registration under the Commercial Code.

The decision was appealed by Mishuran to the Tokyo High Court, and, in June 1999, the District Court's decision was upheld. However, the Tokyo High Court reduced the amount of damages, and it is expected that Mishuran will appeal this decision to the Supreme Court seeking a further reduction in damages.

The decision should have persuasive effect on similar cases involving well-known trademarks used in respect of dissimilar and unrelated goods or services.