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

Yesterday, Yu Wenqing’s legal representative, Liu Ming from Beijing Hechuan Law Firm, revealed to reporters that Hengyuan Xiang has formally submitted a withdrawal request to the Changshu Court in relation to the copyright dispute involving the brand. In response to this move, Liu Ming emphasized that Xingyelong will continue to pursue its claims of trademark infringement against Hengyuan Xiang. Chen Zhongwei, vice president and press spokesperson of Hengyuan Xiang, confirmed the withdrawal but stated that the specific reasons behind it have not been disclosed publicly. Earlier reports suggested that the company may have withdrawn the case to gather more evidence. However, no official explanation has been released so far. This legal battle dates back to November 2009, when Xingyelong filed a lawsuit at the Beijing No. 2 Intermediate People's Court, accusing Hengyuan Xiang of trademark and copyright infringement and demanding RMB 10 million in damages. In response, Hengyuan Xiang counter-sued, claiming that Xingyelong had engaged in malicious trademark squatting and even filed an objection with the State Administration for Industry and Commerce. They also sought RMB 4,000 in compensation from Yu Wenqing. Later, Hengyuan Xiang adjusted its legal strategy by submitting a revised claim to the Changshu People's Court, naming Xingyelong as the defendant and increasing the claim amount to RMB 500,000. According to Liu Ming, the core issue in the case revolved around whether the "Sheep Head" pattern was an original creation of Hengyuan Xiang or part of the public domain. Hengyuan Xiang asserts that the "Sheep Head" design is an independent work created by the company and therefore should be protected under copyright law. However, Liu Ming argues that the design lacks originality and is essentially similar to existing public domain works. He further claims that Hengyuan Xiang did not invest meaningful intellectual effort into creating the design, which undermines its claim to copyright protection. Legal experts have noted that Hengyuan Xiang failed to challenge the registered trademark before the Trademark Review and Adjudication Board within the five-year statutory period. As a result, their legal position is now significantly weakened. If they lose the current case, they risk losing the "Sheep Head" trademark altogether, which could have serious implications for their brand identity and market presence.

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