Chang Tsi & Partners Supported by Hong Kong Company Registry on Three Company Name Complaints

CHANG TSI
Insights

April24
2023

In the Chinese market, a type of infringing company known as the "Hong Kong shell company" is rampant. Due to the relatively lenient scrutiny of company names during the registration process in Hong Kong compared to Chinese Mainland, many companies or individuals prefer to register their businesses in Hong Kong using well-known trade names or brands as their own. Typically, these Hong Kong shell companies do not conduct business in Hong Kong but instead use the names to operate in Chinese Mainland, attempting to impersonate well-known companies or mislead the public about the relationships between the well-known companies and themselves. This allows them to take advantage of the good reputation of these companies and gain unfair economic benefits quickly. The existence of these Hong Kong shell companies has caused significant distress to many rights holders.

Moreover, the individuals controlling these shell companies are often residents of Chinese Mainland. Pursuing these companies through litigation in Hong Kong requires a considerable amount of time and costs, making it difficult for rights holders in Chinese Mainland to protect their rights and stop the public confusion caused by the infringing behavior.

Chang Tsi & Partners, a law firm with extensive experience in handling similar cases, has represented numerous Fortune 500 companies in pursuing infringers by filing company name complaints with the Hong Kong Company Registry (HKCR). Chang Tsi has developed an efficient and fast process for protecting rights and has accumulated a wealth of successful experience. Every year, multiple complaints against infringing company names filed by Changtsi are supported by the HKCR.

Recently, attorneys Jessica Fang and Sierra Qian, members of Tracy Shen's team, jointly represented China National Agricultural Means of Production Group Co., Ltd. (CNAMPGC) in filing complaints against three Hong Kong shell companies that imitated CNAMPGC's trade name and company, causing confusion and misidentification among the related public. All three complaints were supported by the HKCR, resulting in the three Hong Kong shell companies being ordered to change their company names. The new names are no longer the same or similar to CNAMPGC.

CNAMPGC is the largest agricultural means of production enterprise in China, holding a significant position at the national strategic level and in the field of agricultural means of production. In recent years, CNAMPGC has been deeply troubled by Hong Kong shell companies that have imitated its trade name and company name to conduct business activities in Chinese Mainland, causing confusion among the related public. After learning about the extensive experience of Tracy Shen's team in dealing with Hong Kong shell companies, CNAMPGC approached Changtsi for legal support. Through further communication and strategy formulation, CNAMPGC entrusted Changtsi to file three complaints against the misleading company names of three shell companies established in Hong Kong. After gathering information from multiple sources, preparing the complaint materials thoroughly, and persistently communicating with the HKCR, all three complaints were supported, and currently, all three shell companies have voluntarily or been forced to change their names. This method has fundamentally stopped the related infringing behaviors and will effectively deter potential infringers in the market.

We kindly remind rights holders to proactively take measures to prevent similar Hong Kong shell companies from imitating company names or brands, as this could lead to an increase in imitators and significant damage to their reputation and economic benefits. Additionally, according to the Hong Kong Companies Ordinance, complaints against Hong Kong shell companies must be filed within 12 months from the registration of the names. Therefore, rights holders should be mindful of this deadline to avoid facing greater difficulties and costs in protecting their rights at a later stage.

Tracy Shen
Partner | Attorney at Law
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