By Yun Suh-young
French luxury brand Chanel won a lawsuit against a local bar owner who used the name “Chanel” in his establishment’s name.
The Seoul Central District Court ruled Tuesday that Hwang, the owner of a bar called “Chanel Business Club” located in Seongnam, Gyeonggi Province, should compensate Chanel with 10 million won for causing damage to its reputation.
Chanel sued Hwang for damaging the distinctiveness of its registered trademark by using the brand name on signs and in leaflets offering hostess bar services.
Chanel’s lawyers referred to a previous Supreme Court case saying that the trademark was already famous in 1986 and was well known throughout Korea. It claimed that Hwang had damaged the value of Chanel by using it to advertize the late night entertainment aimed at attracting businessmen.
Hwang lost the case because he did not take any action after Chanel filed the suit. The case was closed without any defense or counteraction.
According to civil law, if a defendant doesn’t submit a reply to a complaint sent by the plaintiff within 30 days, the defendant is considered to have admitted to the plaintiff’s allegations.
In 2010, Daejeon High Court ruled that a local karaoke owner should compensate British luxury brand Burberry for using its trademark in a karaoke sign.