Schneider Electric SE's Chinese unit has secured a victory in a trademark dispute against Jiangsu-based Chinese elevator manufacturer, Schneider Elevator, culminating in a 40 million yuan penalty for trademark infringement and unfair competition.

The Jiangsu High People's Court, in its second-instance judgment on February 7, upheld the initial ruling by the Suzhou Intermediate People's Court, which found Schneider Elevator guilty of trademark infringement and unfair competition. As a result, Schneider Electric was awarded 40 million yuan in compensation.

Schneider Electric's lawsuit argued that its "Schneider" and "施耐德(Chinese translation of Schneider)" marks enjoy well-known trademark status. Schneider Elevator's unauthorized use of these marks constituted trademark infringement, while its incorporation of "Schneider" in its company name and utilization of domain names like www.schneider-elevator.cn and www.schneider-elevator.com were deemed unfair competition. Schneider Electric initially sought 124,447,400 yuan in damages plus reasonable expenses of 150,000 yuan.

The Suzhou Intermediate People's Court ruled in favor of Schneider Electric, affirming the plaintiff's claims and ordering the defendant to cease using the disputed marks and domain names. Regarding compensation, the Suzhou court, following its calculations, awarded Schneider Electric 40 million yuan.

Both parties appealed the decision to the Jiangsu High People's Court, which upheld the initial ruling on February 7 and solidified Schneider Electric's triumph in the legal battle.