In a recent landmark case, Chang Tsi & Partners, representing the global automotive tuning giant High Performance Industries, Inc. and its subsidiaries HOLLEY PERFORMANCE PRODUCTS INC., POWERTEQ LLC, MSD, LLC, and APR, LLC, has successfully orchestrated a crackdown on a counterfeit ignition coil operation on Alibaba International Platform. Utilizing combined approaches of AIC complaint and cease-and-desist letter, the rights holder has delivered a decisive blow against intellectual property infringement.

Case Spotlight: From Suspicious Links to a Decisive Strike

In 2023, the Chang Tsi team uncovered that Tianjin Hanjinyongming International Logistics Co., Ltd. was selling multiple counterfeit ignition coils, branded with the client’s DINAN, MSD, and APR marks and logos, at deceptively low prices on Alibaba International Platform. The packaging and trade dress of these infringing goods was a blatant copy of the client’s products, posing a high risk of misleading consumers.

The Chang Tsi team swiftly mobilized and executed a comprehensive enforcement strategy:

Strategic Precision: Assessing the client's intellectual property portfolios in China, including trademarks and copyrights, the team identified that the infringement was not limited to trademark misuse but also included the replication of APR logos and the distinctive trade dress of the clients’ products, thereby infringing on multiple legal rights. Chang Tsi crafted a bespoke enforcement strategy, aiming to amplify the impact of the infringement crackdown while ensuring the maximum protection of the client's rights.

Efficient AIC Complaint: After solidifying the evidence through website and purchase notarization, the Chang Tsi team filed an AIC complaint with the Market Supervision Administration of Hexi District, Tianjin, on behalf of the clients. The team diligently followed up the investigation process, supplemented evidence of ongoing and new infringements, and clearly clarified the facts through multi-departmental cooperation to the officers, thereby accelerating the case's progress, while tracing the source of the counterfeit goods.

The Market Supervision Administration of Hexi District, Tianjin, ultimately issued an administrative penalty decision against the infringer, mandating an immediate cessation of the infringement and imposing a fine, effectively stemming the flow of counterfeit products. This case underscores the resolute commitment of rights holders to defend their interests through the power of the law.

Parallel Cease-and-Desist Letter Yields Compensation: As an export-oriented enterprise, the infringer primarily distributed products overseas via Alibaba International Platform. During the AIC complaint process, the clients discovered that the infringer continued to use the client’s trademarks/ logos in marketing emails sent to Southeast Asian and European markets, some targeting the client's distributors in these regions directly.

To confront the infringer with the full scope of the client's global intellectual property rights and to signal the client's vigilant oversight of the global market, the ChangTsi team dispatched a cease-and-desist letter, taking into account the prevalence of counterfeit goods in international markets. Following persistent engagement and pressure from the Chang Tsi team, the infringer fully acknowledged the client's worldwide intellectual property rights and committed in writing to cease all infringing activities, also providing compensation for the damages incurred due to their infringement.

Brand's Anguish: The Flood of Fakes vs. The Enduring Battle

Brands such as DINAN, MSD, and APR are benchmarks in the global automotive modification landscape, renowned for their dedication to technological innovation, exceptional performance, and uncompromising quality control.

DINAN: Since its inception in 1979, DINAN has been synonymous with BMW vehicle tuning excellence, and in recent years, it has expanded its expertise to include MINI and Mercedes-Benz. With its industry-leading warranties, quality products, and solid engineering, DINAN has become an emblematic brand among BMW driving enthusiasts.

MSD: The MSD brand has been driving the development of innovative components that helped shape the way cars race and perform. As a pioneer in multiple sparking, capacitive discharge ignitions for engines, MSD has been propelling technological advancements in motorsport for 40-plus years. Its MSD 6 Series ignition system, with its race-proven performance, reigns as one of the most popular aftermarket ignitions in the world.

APR: APR, renowned for its high-performance upgrade solutions for Volkswagen, Audi, Škoda, and Porsche, has emerged as a top-tier brand in the realm of performance enhancements. Its proprietary hardware, software, calibration & data-logging tools for engine and transmission controllers, including intake systems, exhaust systems, intercoolers, turbochargers, suspension systems and brake systems, have earned APR a prestigious standing in the high-performance sector.

Since entering the Chinese market in 2008, these brands have swiftly expanded their reach through a robust authorized dealer network, earning the trust and loyalty of consumers nationwide. However, the shadow of counterfeit products looms large, threatening to tarnish brand reputation and consumer safety as infringers peddle substandard fakes on e-commerce platforms at temptingly low prices.

Industry Insights: A Declaration of Rights Protection and a Guide to Avoiding Pitfalls

1. Unwavering protection of intellectual property rights is the strategic cornerstone for businesses to cultivate a deep presence in the Chinese market

For High Performance Industries, Inc. and its subsidiaries, this victory in rights protection is of monumental strategic significance. On one hand, it directly safeguards the brand's reputation and defends the industry leadership established by its core technologies. On the other hand, by publicly demonstrating their commitment to rights protection, they send a powerful message to the market, reinforcing the trust in their brand and their authorized distribution network.

Furthermore, rights holders caution market participants to honor intellectual property rights, warning that any infringement will be met with stringent legal consequences. With the support of a professional team, Chang Tsi will continue to stand guard, forging an impenetrable shield for clients' intellectual property rights.

2. An "Anti-Counterfeiting" Guide for Consumers

High Performance Industries, Inc. and its subsidiaries advise consumers to purchase through official channels, either via the brand's official website (https://www.holley.com/) or through authorized dealers. Be vigilant against the lure of "price traps", support authenticity, and protect your safety and rights. Additionally, should you encounter any suspicious infringement activities, do not hesitate to report them to Chang Tsi & Partners.

Looking ahead, High Performance Industries, Inc. and its subsidiaries will persist in their collaboration with enforcement and judicial authorities to nurture an ecosystem of intellectual property protection, foster the healthy evolution of China's automotive aftermarket, and uphold consumer rights.