Analysis on the impact of the “Dilution Theory” on ruling of trademark cases

Chinese trademark law has established the cross-category protection system of well-known trademarks based on the confusion theory. The system, however, has many problems in practice and does not fulfill completely the needs for protecting well-known trademarks. Consequently, when hearing trademark cases, some judges have abandoned the confusion theory instead of using the dilution theory in judging well-known trademarks. Through analysis on 100 judgments concerning well-known trademark cases, it can be seen that the influence of the dilution theory on the ruling of trademark cases is increasing. Certain conditions should first be satisfied when introducing the dilution theory to rule trademark cases: Firstly, the contents of the dilution theory shall be grasped as correctly as possible to avoid plausible understanding; secondly, the application of the dilution theory shall adopt the existing institutional criteria as much as possible by full use of the leeway of interpretation provided by the existing system.