According to Tianyancha App, a business information search platform, the first instance judgment of trademark infringement litigation between Tencent and the Guangzhou Ren Wo Xing video game store has been made public.
The judgment suggests that plaintiff Tencent presented itself as the exclusive distributor in China authorized by Nintendo, a Japanese computer game developer, and therefore brought an action against the defendant, Ren Wo Xing Video Game Console Store, which was blatantly selling a product named “Nintendo NSSWITCH CH Version”. However, the game consoles sold by the defendant were found not to be genuine. In addition, the product packaging features several prominent logos of “Tencent” in English and Chinese, which also infringes the trademark rights of Tencent.
In addition, the non-genuine game console sold by the defendant was found to have a tampered operating system and is equipped with high-risk pirated systems, which constitutes unfair competition.
The defendant made a profit of 2,802.5 yuan ($442) from selling the pirated products. The court ruled that the defendant should immediately stop selling pirated Nintendo Switch game consoles and compensate the plaintiff, Tencentfor reasonable rights protection losses and expenses, which amount to 204,129 yuan.
As of 2019, Tencent announced the sale of the Nintendo Switch, a family game console, in China. Many media then considered the strong alliance between Tencent and Nintendo with the aim of opening up the Chinese market, the largest games market in the world.
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In January 2021, Tencent announced that it has shipped more than one million units of Nintendo products since the launch of Switch consoles in China in late 2019.