Left: Luckin Coffee Right:LUCKY CAT Coffee
Photo Source: Futian District People's Court in Shenzhen
Luckin Coffee(瑞幸咖啡) has secured a significant victory in a trademark infringement case, with the Futian District People's Court in Shenzhen awarding the company 5 million yuan in compensation, as per a judgement released on July 21.
The case involved Hangzhou Reliu Brand Operation Management Co., Ltd. (hereinafter "Hangzhou Reliu Company"), which operated under the "LUCKY CAT COFFEE(幸猫咖啡)" brand, and was accused of imitating Luckin Coffee's trademarks.
Founded in 2017, Luckin Coffee has rapidly expanded, reaching 24,032 stores according to its Q1 2025 financial report. With strong brand recognition, the company is a major player in China's coffee shop market.
Hangzhou Reliu Company, established in December 2020, registered the "LUCKY CAT COFFEE" trademark in 2022. The company operated 86 franchise stores nationwide, using branding closely resembling that of Luckin Coffee, including identical logos on coffee cups, paper bags, and staff uniforms. This led Luckin Coffee to file a lawsuit in 2023, demanding that Hangzhou Reliu Company stop the infringement, make a public statement to remove the effects, and pay 5 million yuan in damages.
In a judgement dated on July 29, 2024, the Futian District People's Court in Shenzhen ruled that the two trademarks were highly similar in appearance, color, and visual effect. Given the widespread recognition of Luckin Coffee's brand, the court concluded that the similarity of the trademarks across various platforms—storefront signs, coffee cups, and uniforms—created a significant risk of consumer confusion.
The court determined that Hangzhou Reliu Company had willfully infringed upon Luckin Coffee's exclusive trademark rights. Despite knowing the high market recognition of Luckin Coffee, Hangzhou Reliu Company had used a similar logo to engage in comprehensive imitation with clear malicious intent. The company had profited greatly by charging millions of yuan in franchise fees, making the infringement particularly severe.
Additionally, during the trial, the court instructed Hangzhou Reliu Company to provide evidence related to its franchise fees. However, the company failed to comply, obstructing the evidence-gathering process.
Based on the evidence submitted by Luckin Coffee, the court calculated that Hangzhou Reliu Company had earned at least 1.72 million yuan in franchise fees and imposed double punitive damages. The court ultimately set the compensation at 5.16 million yuan, fully supporting Luckin Coffee’s claim for 5 million yuan in economic losses and reasonable expenses.
On December 13, 2024, an announcement published in Legal Daily confirmed that the court's decision had become legally binding. However, Hangzhou Reliu Company failed to comply with the ruling, including halting the infringement, issuing a public statement to eliminate the effect, and compensating Luckin Coffee's losses. As a result, Luckin Coffee requested forced execution of the judgment.
