The total damages awarded was the maximum under China Trademark Law
SHANGHAI, April 2, 2011 /PRNewswire-Asia/ -- Honeywell (NYSE: HON) announced it has won a milestone litigation against Shanghai Gerritt Turbo Systems Ltd., for infringement of Honeywell's well-known Garrett brand of turbochargers.
In a recent ruling by the Shanghai Huangpu District People's Court, after more than a year of hearings, the Gerritt Company (short for Shanghai Gerritt Turbo Systems), its sole shareholder Mr. Tong Yuwei and its sales agent Mr. Han Song were all found liable for infringement of Honeywell's exclusive trademarks for "Garrett" and "Garrett in Chinese." The defendants were ordered to immediately cease infringement and pay Honeywell damages of RMB500K. In addition, the court ordered the Gerritt Company to stop using its infringing domain name and to immediately stop using "Gerritt" as the company name.
Between 2005 and 2008 the Gerritt Company, Tong Yuwei and Han Song repeatedly infringed Honeywell's "Garrett" trademark despite several crackdowns from local law enforcement. The Gerritt Company even registered "Gerritt" as a trademark and created a website and domain name to cover up their infringing actions, as well as to mislead "Garrett" customers.
The highlight of the case is that nearly every aspect of Honeywell's claims were fully supported and the ruling comprehensively prohibits all infringing activities, most importantly product branding, company name and internet domain name. The total damages awarded also set a record for Honeywell's intellectual property protection efforts in China.
An international trademark registered in over 40 countries, Honeywell's Garrett brand was named after its founder Cliff Garrett and has enjoyed a long history dating back to 1936. With 70 years of continuous improvement, "Garrett" has now become a world renowned turbocharger brand with a daily production of over 30,000 units worldwide. Adopted by more than 80 engine manufacturers and automotive OEMs, these high quality engine boosting systems can save fuel and reduce emissions while offering the same engine performance.
Commenting on the court's decision Honeywell China and India President and CEO, Shane Tedjarati said, "The creation of intellectual property assets which include patents, trademarks, copyrights and trade secrets help sustain our competitive advantage in the marketplace. Our products meet rigid quality control standards, and our global customers have come to associate the Honeywell name and trademark with innovative, high-quality products.
We are pleased with the ruling, which demonstrates China's determination in enforcing IP protection and in turn it strengthens Honeywell's long term commitment to growing in China with state-of-the art technologies and know-how. We will continue to work collaboratively with the Chinese government to protect our customers, employees, reputation and our company from any unlawful activities that infringe upon our intellectual property rights - particularly the manufacture and marketing of counterfeit products. "
The Chinese government is placing increasing emphasis on anti-counterfeit and intellectual property protection to both encourage innovation and safeguard the well-being of its citizens. In recent years, by collaborating with local governments, Honeywell has made huge strides in protecting its brands and other IP assets in China.
In January 2011 the Shanghai Putuo District Industry and Commerce Law Enforcement Agency investigated and ultimately imposed a fine of RMB1.28 million on a dealer who sold counterfeit Genetron, a widely-used refrigerant made by Honeywell. In 2010 a Garrett counterfeiter in Liaoning Province was successfully convicted and the assistant president of the company was sentenced to one year in jail and ordered to pay a criminal fine of RMB 100K. In November 2008 Honeywell received accolades from the intellectual property rights industry for the successful criminal conviction of the counterfeiters of its Bendix brake pads. The case was recognized as a "Top 10 Intellectual Property Rights (IPR) Protection Case" by the Supreme People's Court of China. Honeywell also received the "2008-2009 China 10 Intellectual Property Rights Best Practices Award" presented by the Quality Brands Protection Committee (QBPC).
About Honeywell
Honeywell (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes, and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com .
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