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ChipsMore vs ChipsPlus Trademark Case

ChipsMore vs ChipsPlus Trademark Case

Thursday, February 29, 2024

In Malaysia, a longstanding British biscuit manufacturer had been marketing its cookies under the brand name "ChipsMore" for more than two decades. Meanwhile, a Malaysian company entered the market with a similar product line under the brand name "ChipsPlus."

Upon seeking legal counsel, the British company was advised that they could pursue legal action against the Malaysian company for both trademark infringement and passing off. Trademark infringement hinged on demonstrating that "ChipsPlus" was so akin to "ChipsMore" that it risked confusing consumers. On the other hand, passing off required proving that the Malaysian company was misrepresenting its products as being associated with the British company, and that the British company had garnered substantial goodwill and reputation in the marketplace.

Ultimately, the Malaysian court ruled in favor of the British company. It deemed "ChipsPlus" to be an infringement of the established "ChipsMore" trademark due to the striking resemblance between the two brands, coupled with their identical product offerings. Moreover, the court found the Malaysian company liable for passing off, noting that the British company had convincingly demonstrated its longstanding presence and positive reputation in the Malaysian market, while "ChipsPlus" misrepresented its goods.

This case serves as a reminder of the importance of trademark registration in Southeast Asia and the legal protections it affords. It also underscores the potential legal consequences of adopting brands that are too similar to existing trademarks. Additionally, it highlights the significance of demonstrating goodwill and reputation when pursuing passing off claims, particularly in Common Law jurisdictions like Malaysia.

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