Carrefour sues Chinese retail chain for trademark infringement

French supermarket giant Carrefour SA has filed a lawsuit in China against a Chinese company and its subsidiaries for using Carrefour's logo on supermarket signs, shopping bags and price tags, Chinese state media reported yesterday.

Carrefour, the world's second-largest retail chain after Wal-Mart has asked a court to stop the Anhui Jiale Supermarket Chain and its subsidiaries from using Carrefour's Chinese name, Jialefu at supermarkets in Fuyang city in the eastern province of Anhui, reported Xinhua news agency.

While conducting a market survey in Fuyang, the Paris-based Carrefour, which has more 157 stores across China, was shocked to learn that there were 160 Carrefour stores in Fuyang city.

In the lawsuit, Carrefour has accused the Chinese retail chain of illegally using the logo 'Jialefu,' when translated into Chinese means "Carrefour."

Carrefour also alleges that the Anhui Jiale Supermarket Chain uses a blue logo similar to that of Carrefour on its shop signs, price tags, receipts, and shopping bags, which creates confusion in the minds of customers as to whether the supermarket is operated by the French retail giant.

Carrefour is asking the Chinese court to compel Jiale to desist from using its name and logo and is claiming 6 million yuan ($882,000) in compensation.

Jiale, which runs more than 160 supermarkets in Fuyang City, most of which are located in the nearby towns and countryside, claims that it has already changed its name from 'Jialefu' to 'Jiale' in August 2009, before the lawsuit was filed.

In its defense, Jiale says that the 'Jialefu' logo means "happy family" in Chinese, and has no bearing on Carrefour's trademark logo.
The hearing of the lawsuit, which started on 18 August, continues.