by Crystal Zhang
In a recent court decision, China’s coffee chain brand Luckin Coffee has successfully reclaimed its trademark rights in Thailand after a prolonged legal battle against local competitor Royal 50R Group.
The Central Intellectual Property and International Trade Court of Thailand ruled in favor of Luckin Coffee on February 6, 2025, overturning an earlier ruling that had granted rights to Royal 50R Group. This ruling marks a significant precedent in trademark protection for multinational corporations in oversea markets.
Background: The Trademark Dispute
The conflict began in 2019 when Royal 50R Group, a Thai company, registered the "Luckin Coffee" trademark with a nearly identical logo in Thailand. Despite that Luckin Coffee not having officially entered the Thai market at the time, 50R Group proceeded to open multiple coffee shops mimicking Luckin’s branding, store design, product packaging, and marketing materials.
Luckin Coffee initiated legal proceedings in Thailand in 2021, arguing that 50R Group’s actions constituted trademark infringement and unfair competition. A favorable ruling was issued to Luckin Coffee in the first instance. However, in a shocking turn of events, the Thai Special Cases Appeal Court ruled against Luckin in December 2023, upholding 50R Group’s trademark registration.
Following the unfavorable ruling, Luckin Coffee started a new round of litigation, leading to the recent court decision which ruled that Luckin Coffee holds superior rights to the "Luckin" name and its distinctive logo in Thailand.
The court's ruling includes:
Trademark cancellation: The court ordered the cancellation of 50R Group’s "Luckin Coffee" trademark registrations in Thailand.
Cease and desist order: 50R Group is permanently prohibited from using the "Luckin Coffee" name in both English and Chinese, as well as the deer-head logo, in any business operations.
Corporate name change: The company must remove any references to "Luckin Coffee" from its corporate name, business listings, and promotional materials.
Financial compensation: 50R Group must pay 10 million Thai Baht (approximately USD 290,000) to Luckin Coffee in damages, setting a record for trademark infringement penalties in Thailand.
Daily fines and legal fees: If 50R Group continues to use the infringing trademark after March 4, 2024, it must pay an additional daily penalty of 100,000 Thai Baht until full compliance is achieved. Moreover, 50R Group must bear Luckin Coffee’s legal expenses incurred during the case.
In response to the unfavorable ruling, 50R Group claimed that they had launched a counter-claim, which includes reputational harm, lost expansion opportunities, and alleged unlawful seizure of assets from its coffee stores.
The case has been accepted for review, and the legal battle therefore isn’t entirely over.
Our Takeaways
This case underscores several crucial takeaways for IP professionals and multinational companies:
Proactive Trademark Registration: Businesses looking to expand internationally must prioritize registering their IP rights in the target markets well in advance. Some of the regions, such as South-East Asian countries, take long time to approve a trademark registration, so proactive planning is important.
Jurisdiction-Specific Challenges: Local laws and regulations can present unexpected obstacles, making it essential to work with experienced legal counsel familiar with the local rules.
Persistence in IP Protection: Luckin Coffee’s determination and strategic shift in litigation illustrate the importance of adaptability in defending trademark rights.