The Protection of Licensee’s Later Forming Goodwill in the Trademark Licensing—The legal analysis of “Wanglaoji” Trademark Dispute

Abstract

The allocation of later forming goodwill between licensor and licensee is a crucial issue with theoretical and practical significance after the trademark licensing termination This paper will analyze the hot debating case throughout China due to the trademark licensing between GPHL and Hong Kong HDG involving the dispute of “wanglaoji” trademark, JDB Co. has created great later forming goodwill of “wanglaoji” trademark independently in the trademark licensing, but who should possess the added value of the trademark is uncertain thanks to the lack of appointment in the licensing contract and no regulation in Chinese Trademark Law. JDB Co. has used its own trademark, trade dress, unique commodity packaging and decoration to form the value-added benefits and later forming goodwill, so it is concluded that it’s lawful for JDB Co. to transplant the goodwill from “wanglaoji” brand to “jiaduobao” brand because the licensee’s interests should be also protected. Keywords—later forming goodwill; wanglaoji trademark; licensing contract; trademark protection