Kweichow Moutai Attempts to Register a “National Liquor” Trademark

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Kweichow Moutai Co., Ltd. (貴州茅台酒股份有限公司) is a highly renowned white liquor producer in China. In July 20, 2012, it was publicized that Kweichow Moutai Co.’s application for “National Liquor” trademark has passed the preliminary review by the Trademark Office of the State Administration for Industry & Commerce. In other words, if final approval is to be granted by the Trademark Office, the name of the famous distillery will be officially changed to “National Liquor Moutai Co., Ltd” (國酒茅台). In China, using the word “national” in a company’s trademark usually suggests that this company is either state-owned, or is of the greatest or the most unique quality that can represent the image of China in the entire industry. Therefore, granting the “National” trademark requires rigorous examination by the Trademark Office, and there is actually a chapter in the Trademark Law of China specifically describing the eligibility of using the word “National” in a company’s trademark. Needless to say, acquiring the “National Liquor” trademark will bring substantial benefits to Kweichow Moutai Corporation. For example, the company’s image will be largely improved, as the new brand name gives people an impression that the white liquor of Moutai is certified by the national authority and can represent the best quality in the industry. The brand name could make Kweichow Moutai easily stand out from other competitors without much marketing efforts, and hence can seize a larger market share. However, in my opinion, granting Kweichow Moutai Co. the “National Liquor” trademark could be harmful for many other parties, despite the fact that it greatly benefits the business of Kweichow Moutai. One of the reasons is that once the name is changed, unfair competition would arise. Kweichow Moutai would attract a lot of consumers away from other brands, because “National Liquor” would quite

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