Opposition by Luckin Coffee Group Co Ltd to registration of trade mark application number 1987084 (Class 43) – Luckin – in the name of A&ZZ Pty Ltd.

Case [2022] ATMO 43


TRADE MARKS ACT 1995

DECISION OF A DELEGATE OF THE REGISTRAR OF TRADE MARKS WITH REASONS

Re: Opposition by Luckin Coffee Group Co Ltd to registration of trade mark application number 1987084 (Class 43) – Luckin – in the name of A&ZZ Pty Ltd.

Delegate: Blake Knowles
Representation: Opponent: Ben Gardiner of counsel, instructed by McCullough Robertson Lawyers.
Applicant: Self-represented.
Decision:

2022 ATMO 43

Trade Marks Act 1995 (Cth) – opposition under section 52 – grounds for opposition pressed under ss 42(b), 60, and 62A – s 60 considered and established – registration refused.

Background

  1. This is a decision in the opposition by Luckin Coffee Group Co Ltd (‘Opponent’)[1] to trade mark application number 1987084 (‘Application’) filed by A&ZZ Pty Ltd (‘Applicant’) on 3 February 2019 (‘Relevant Date’) for the trade mark ‘Luckin’ (‘Trade Mark’) for cafes; cafe services; restaurants; salad bar restaurant services; coffee shop services; bistro services; washoku restaurant services; inn keeping (bar, restaurant and accommodation); restaurant services; cocktail lounge services; coffee bar and coffee house services (provision of food and drink); snack-bars; theatre restaurants (provision of food and drink); bakery services; wine bar services; taverns; bar services; takeaway food and drink services; tea room services; restaurant reservation services; food and drink catering; snack bars (provision of food and drink); ice cream parlour services; self-service restaurants; udon and soba restaurant services in Class 43 (‘Applicant’s Services’).

    [1] The opposition was initially filed by another company Beijing Luckin Coffee Technology Co Ltd. However, the rights upon which the opposition were based were subsequently assigned to the Luckin Coffee Group Co Ltd, and that company subsequently requested on 25 February 2022 to become the opponent in these proceedings. As such, references to the ‘Opponent’ in this decision are references collectively to Luckin Coffee Group Co Ltd as the current Opponent, and Beijing Luckin Coffee Technology Co Ltd as its predecessor.

  2. The Application was accepted for registration and subsequently advertised for opposition on 4 August 2019.  The Opponent filed a notice of intention to oppose on 3 October 2019, followed by a statement of grounds and particulars (‘SGP’) on 1 November 2019. The Applicant filed a notice of intention to defend on 11 February 2020.

  3. The parties had the opportunity to file evidence in accordance with reg 5.14.[2] The Opponent filed Evidence in Support (‘EIS’) on 12 August and 7 September 2020. The Applicant filed Evidence in Answer (‘EIA’) on 3 February 2021. The Opponent did not file Evidence in Reply.  

    [2]   Unless otherwise stated, each reference to a section or regulation is a reference to a section of the Trade Marks Act 1995 (Cth) (‘Act’) or regulation of the Trade Marks Regulations 1995 (Cth) (‘Regulations’).

  4. The parties were given the opportunity to request an oral hearing or be heard by written submissions. The Opponent requested that the matter be decided based on written submissions and paid the relevant fee. Ben Gardiner of counsel instructed by McCullough Robertson Lawyers filed written submissions on behalf of the Opponent. The Applicant did not…

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AGLC
Opposition by Luckin Coffee Group Co Ltd to registration of trade mark application number 1987084 (Class 43) – Luckin – in the name of A&ZZ Pty Ltd. [2022] ATMO 43
Case
[2022] ATMO 43
Decision Date

CaseChat Overview and Summary

This matter concerned an opposition by Luckin Coffee Group Co Ltd (the Opponent) to the registration of trade mark application number 1987084, for the mark "Luckin" in Class 43, filed by A&ZZ Pty Ltd (the Applicant). The opposition was heard by Blake Knowles, Delegate of the Registrar of Trade Marks.

The legal issues before the Delegate were whether the Opponent had established any of the grounds of opposition pressed, specifically under sections 42(b), 60, and 62A of the *Trade Marks Act 1995* (Cth). The Opponent bore the burden of proving its grounds on the balance of probabilities, with rights assessed as at the relevant date.

The Delegate found that the Opponent had successfully established the ground of opposition under section 60 of the *Trade Marks Act 1995* (Cth). This was based on evidence demonstrating the Opponent's significant international use and recognition of the "Luckin" mark, including substantial media publicity in Australia prior to the relevant date, and a large number of Chinese visitors to Australia. As a ground of opposition had been established, it was unnecessary to consider the other grounds.

Consequently, the Delegate decided to refuse the registration of the trade mark application. The Opponent was awarded costs against the Applicant.

Orders

Orders of the court

24. Decision and award of costs

25. The Opponent has established a ground of opposition. As such, I have decided to refuse registration of the Trade Mark. Noting the appeal period, this refusal will be recorded one month from the date of this decision unless the Registrar of Trade Marks is served with a notice of appeal. If an appeal is filed, the disposition of this opposition will be for the court.

26. The Opponent has requested an award of costs in its favour. Costs usually follow the event. There being no reason to make an exception here, I award costs against the Applicant.

Background

Background to the litigation

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Evidence

Evidence Before The Court

The Opponent carries the burden of establishing one or more of the grounds of opposition on the balance of probabilities.[3] The rights of the parties are assessed as at the Relevant Date.[4][3] Pfizer Products Inc v Karam [2006] FCA 1663, [22] (Gyles J); Telstra Corporation Limited v Phone Directories Company Pty Ltd [2015] FCAFC 156, [133] (Besanko, Jagot and Edelman JJ).[4] Southern Cross Refrigerating Co v Toowoomba Foundry Pty Ltd (1954) 91 CLR 592, 595 (Kitto J).Evidence The following evidence was filed: EIS Declarations by Jinyi Guo, CEO of the Opponent, made 11 August 2020 (with Exhibits 1-11) and 4 September 2020 (with confidential Exhibit JG-1). EIA Declaration of Fei Yuan, director of the Applicant, made on 20 December 2020, with one annexure. EIS Mr Guo declares that the Opponent was founded in China in June 2017, and that by early 2019, the Opponent had surpassed Starbucks as the largest coffee-chain and coffee brand in China. At the time of Mr Guo’s first declaration (August 2020), the Opponent had over 4,900 coffee stores operating under the brand ‘Luckin’ (‘Opponent’s Mark’) in China. Mr Guo declares that the Opponent chose the Opponent’s Mark due to its association with luck, felicity, and happiness, amongst other positive connotations. Mr Guo opines that the exponential growth of the Opponent’s business was due to its technology driven retail model and competitive price point. Mr Guo states that the extraordinary growth of the Opponent resulted in its subsequent public listing on the NASDAQ exchange in early 2019. Mr Guo declares that the Opponent’s Mark has gained significant media publicity, including in Australia. Mr Guo annexes various Australia media articles published prior to the Relevant Date, including from the Australian (dated 1 August 2018 and 15 October 2018), the Australian Financial Review (dated 3 August 2018 and 11 October 2018), Daily Mail Australia (dated 3 January 2019), and the Sydney Morning Herald (dated 17 January 2019). I note that the articles in Daily Mail Australia and Sydney Morning Herald are specifically focused on the Opponent’s business and in particular its challenge to Starbucks in the Chinese market. Mr Guo declares that the Opponent’s website, has had approximately 11.3 billion hits since July 2017. Mr Guo also annexes various exhibits which show the Opponent’s Mark (and the substantially identical variation, ‘Luckin Coffee’) in use in China on the Opponent’s website, signage, packaging, and in promotional contexts such as the sponsorship of events such as the Beijing Marathon in September 2018, the Huawei Connect conference in October 2018, and the Tencen Connect Conference in November 2018. Mr Guo declares that the Opponent has been recognised as one of the world’s fastest growing companies, and from 2017 to 2019, the Opponent was awarded over 70 industry awards. Mr Guo declares that during the period 2018-2019, there were 9.3 million short term visitor arrivals to Australia from overseas, and that China alone was the origin of over 1.4 million visitors. Mr Guo annexes an extract from the Australian Bureau of Statistics website from which the information regarding visitor numbers was sourced.

Decision

Reasons for decision

I am therefore satisfied that the Opponent has established the ground of opposition under s 60 in respect of all the Applicant’s Services. As the Opponent has established a ground of opposition under s 60, it is not necessary to consider the other grounds of opposition relied on. Decision and award of costs The Opponent has established a ground of opposition. As such, I have decided to refuse registration of the Trade Mark. Noting the appeal period, this refusal will be recorded one month from the date of this decision unless the Registrar of Trade Marks is served with a notice of appeal. If an appeal is filed, the disposition of this opposition will be for the court. The Opponent has requested an award of costs in its favour. Costs usually follow the event. There being no reason to make an exception here, I award costs against the Applicant. Blake KnowlesDelegate of the Registrar of Trade Marks24 March 2022

Ratio Decidendi

Legal Principle Established

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