Registering your trademark as soon as possible is an essential step to avoid costly mistakes, as demonstrated by the experiences of giants like Apple, Burberry, and even Michael Jordan. These influential players have found themselves entangled in legal battles, sometimes losing the rights to brand names they believed were rightfully theirs. One notable example is Michael Jordan, whose Chinese name "Qiaodan" became the foundation for an entire brand created by a Chinese company. This name bears a striking resemblance in pronunciation to "Jordan." The company went further by filing trademarks using Jordan's jersey number, "23," and even incorporating the names of his sons, Jeffrey and Marcus, in Chinese. Their logo closely resembles Air Jordan's iconic "Jumpman" logo.
Nike Air Jordan Victorious in China
In 1997, the Fujian-based company, now known as "Qiaodan Sports Company," emerged with the aim of selling sportswear to Chinese consumers. During the late 1990s and 2000s, Qiaodan Sports filed trademark applications in China that left no doubt about their association with Jordan. These applications included trademarks for a basketball player silhouette logo, which bore a striking resemblance to the famous Jumpman logo. Qiaodan Sports cleverly took advantage of Chinese trademark law, which follows a "first-to-file" basis, granting trademark rights to the first applicant. This differs from U.S. trademark law, which requires proof of "first-to-use" in business. Qiaodan Sports capitalized on this system, leading to a surge in sales and the opening of approximately 6,000 stores during the 2000s and 2010s. Michael Jordan took legal action against Qiaodan, but the Beijing Higher People's Court upheld a decision in favor of the Chinese company in May. It wasn't until 2016 that China's supreme court ruled in Jordan's favor, granting him the right to his Chinese name, Qiaodan.
Jordan's victory took four years to achieve, yet Qiaodan Sports stores seem to still be able to utilize their Chinese name. Moreover, the court ruling does not prohibit Qiaodan Sports, a lucrative enterprise, from employing a logo strikingly similar to Jordan's Nike brand. This is why you must trademark as soon as possible.