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China (PRC) - Decision Issued on Appeal in Domain Name Dispute

In our February 2002 Newsletter (N.S. 193) we reported on a decision of the Second Intermediate People's Court in Beijing in the case of Inter Ikea Systems B.V. (Inter Ikea) v. Beijing Guo Wang Information Co., Ltd. (Beijing Guo Wang). In that case the Court held that IKEA was a well-known mark and restrained Beijing Guo Wang from using the domain name, ikea.com.cn. The Court also ordered that the registration be canceled within 10 days of the decision. Beijing Guo Wang appealed the decision to Beijing’s highest municipal court which has now dismissed the appeal. The only significant change from the lower court’s ruling was that the appeal court declined to recognize Inter Ikea’s trademark as being well-known as such determinations were reserved to the State Administration for Industry and Commerce. No further appeal is allowed under Chinese law. Although China’s legal system does not regard case law as binding, this decision is important for future domain name cases, as the Court afforded protection of trademark rights in a domain name dispute.

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