Heng Yuanxiang suddenly withdraws the case and may lose the sheep's head trademark

Yesterday, Yu Wenqing’s attorney and Liu Ming from Beijing Hechuan Law Firm revealed to reporters that Hengyuan Xiang has formally submitted a withdrawal request to the Changshu Court concerning the copyright dispute involving Hengyuanxiang. In response to this move, Liu Ming emphasized that Xingyelong will continue to pursue its trademark infringement claims against Hengyuanxiang. Chen Zhongwei, vice president and press spokesperson of Hengyuan Xiang, confirmed the news but did not disclose the specific reasons behind the withdrawal. Earlier reports suggested that the company may have withdrawn the case to gather additional evidence. However, no official explanation has been provided yet. The legal battle between the two parties dates back to November 2009, when Xingyelong filed a lawsuit at the Beijing No. 2 Intermediate People's Court, accusing Hengyuanxiang of trademark and copyright infringement and demanding RMB 10 million in damages. In response, Hengyuanxiang counter-sued, claiming copyright infringement and accusing Xingyelong of "malicious squatting." The company also filed a trademark objection with the State Administration for Industry and Commerce and sought RMB 4,000 in compensation from Yu Wenqing. Later, Hengyuanxiang amended its lawsuit and transferred the case to the Changshu City People's Court, naming Xingyelong as the defendant and increasing the claim to RMB 500,000. According to Liu Ming, the core issue in the case was whether the "Sheep Head" pattern was an original creation of Hengyuanxiang or belonged to the public domain. Hengyuanxiang argues that the "Sheilou" design is an independent work they created and therefore should be protected under copyright law. However, Liu Ming contends that there is little difference between the "Sheep Head" pattern and common artistic works in the public domain, and that Hengyuanxiang did not invest significant intellectual effort into its creation. As a result, he believes the trademark lacks the necessary originality to qualify for copyright protection. Legal experts have also pointed out that Hengyuanxiang failed to challenge the registered trademark within the five-year window required by law. This missed opportunity has put them in a difficult position. If the court rules against them, they risk losing the "Sheep Head" trademark altogether, which could have serious implications for their brand identity and market presence.

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