The Supreme People’s Court (SPC), China’s top court, recently released the top 10 IP cases and 50 typical IP cases of 2023. Encompassing patents, trademarks, copyrights, new plant varieties, anti-unfair competition, and anti-monopoly, these cases span a wide spectrum of intellectual property categories. They delve into crucial realms and sectors of the modern era, including core technological innovation, renowned domestic and international brands, the digital economy, and the seed industry. 

    These cases can provide readers with a comprehensive overview of the Chinese IP landscape. In the upcoming weeks, China IP will publish the English version of the top 10 IP cases of 2023.

Case IX: Case Involving Unfair Competition Dispute over "Xiao Ai " Voice Activation Word

Case Brief:

    Xiao XX Technology Co., Ltd. introduced in July 2017 the first artificial intelligence speaker with the voice activation word "Xiao Ai", which was subsequently also used in the company’s mobile phones, TVs, and other products. 

    Chen XX applied to register 66 relevant trademarks, including "Xiao Ai", across various product categories between August 2017 and June 2020, and then sent a legal letter to Xiao XX Technology Co., Ltd., asserting trademark rights over "Xiao Ai" and requesting cease of infringement. Additionally, Chen XX used the "Xiao Ai" trademark with Shenzhen XX Technology Co., Ltd. on sports watches and alarm clocks, and jointly published product promotional articles. 

    In response, Xiao XX Technology Co., Ltd. filed a lawsuit to the Wenzhou Intermediate People’s Court, arguing that the actions of Chen XX and Shenzhen XX Technology Co., Ltd. constituted unfair competition.

    The court held that "Xiao Ai", through widespread promotion and usage, had gained public recognition as an influential voice activation word, the name of an artificial intelligence voice interaction engine, and as the designation for smart speakers equipped with such technology. As such, it was protected under the Anti-Unfair Competition Law. Chen XX's extensive registration of relevant trademarks, including "Xiao Ai", and the subsequent legal letter sent to Xiao XX Technology Co., Ltd.'s subsidiaries, were deemed as a breach of the good faith principle, disrupting fair market competition and infringing upon the legitimate rights and interests of Xiao XX Technology Co., Ltd. This constituted unfair competition under Article 2 of the Anti-Unfair Competition Law. Additionally, Chen XX and Shenzhen XX Technology Co., Ltd. sold products bearing the "Xiao Ai" mark and published misleading commercial information, leading to confusion and constituting false advertising and unfair competition. 

    The court ruled Chen XX and Shenzhen XX Technology Co., Ltd. to cease the infringement immediately. Chen XX was ordered to compensate for economic losses and reasonable expenses totaling 1.2 million RMB, with Shenzhen XX Technology Co., Ltd. jointly liable for 250,000 RMB of this amount. 

Neither party filed an appeal to this decision.

Typical Significance:

    This case sets a precedent in the protection of rights associated with artificial intelligence voice activation words. The ruling clarifies that voice activation words that gain recognition and influence through use are protected under the Anti-Unfair Competition Law. It also effectively curbs the practice of maliciously registering others' voice activation words and abusing those rights, thereby safeguarding the brands and goodwill of technological innovators.

Source:China IP