Chinese milk tea chain fined $1.5 million for Louis Vuitton trademark infringement

A popular Chinese milk tea chain has been ordered by a court to pay 10.3 million yuan ($1.5 million) to French luxury giant Louis Vuitton Malletier for trademark infringement, sparking widespread public discussion on intellectual property protection, according to a report by Nanfang Metropolis Daily on Thursday.

The Suzhou Intermediate People's Court in Jiangsu province found that Molly Tea, a Shenzhen-based milk tea company, and a franchise store in Suzhou's Wuzhong district, had infringed on seven of Louis Vuitton's registered four-petal flower graphic trademarks.

The ruling, made on June 29, includes 10 million yuan in economic damages and an additional 300,000 yuan to cover Louis Vuitton's legal expenses. Molly Tea confirmed to the media that it will appeal to a higher court.

The dispute centers on the similarity between Molly Tea's brand emblem — a four-petal flower design — and Louis Vuitton's iconic monogram motifs. The French brand filed the lawsuit in May 2025 with the Suzhou court.

The report also noted that Molly Tea filed multiple applications with the China National Intellectual Property Administration for various flower marks covering restaurant services and food products. However, most applications were rejected, with only a mark including the Chinese characters for "Molly Tea" successfully registered.

Founded in Shenzhen in 2021, Molly Tea specializes in fresh milk tea with floral notes and has rapidly expanded to over 2,000 stores in China as of May 13 and more than 50 overseas locations as of June 11, according to the report.

The ruling has ignited significant public attention and debate on Chinese social media platforms. Some netizens argue that the tea brand's floral pattern closely resembles Louis Vuitton's design, while others contend that the logos are not particularly similar and that the companies operate in different product categories. Additionally, some have questioned the originality of Louis Vuitton's motif, suggesting it may have drawn inspiration from traditional Chinese cultural elements.

Kang Lixia, partner of Beijing Standzer IP Firm, stated that the Chinese company has the right to appeal and provide more evidence. She emphasized that traditional cultural elements are part of the public domain, but the principle of "first-to-file" is fundamental in China's trademark legal system.

Under the Chinese Trademark Law, trademark rights are primarily granted to the party that first registers them with the China National Intellectual Property Administration.

Liu Bin, another IP lawyer from Beijing Zhongwen Law Firm, noted that while traditional cultural elements should remain open for inheritance, the use of specific commercial signs should avoid similarity with others' previously registered brand identifiers.