Case Won on behalf of Mifendang, a Pho Restaurant; Court Grants Injunction under the Unfair Competition Claims
2023.05.08.
Yulchon effectively won the case on all claims on behalf of Mifendang, a Pho franchise restaurant, by obtaining an injunction based on unfair competition claims against Woulmidang. Woulmidang, another Pho franchise restaurant, had imitated and operated under a similar business name, store design and service system.
Yulchon claimed that Woulmidang’s business name, outdoor appearance, and interior design and structure made up its distinct business sign/identity (trade dress) that set it apart from other traditional Vietnamese noodle restaurants. (e.g., distinctive food plating using toppings and free refills on noodles and soup).
Pursuant to the provisions of Article 2, Clause 1, Sub-clause (a) of the Unfair Competition Prevention and Trade Secret Protection Act, Yulchon presented various materials as evidence demonstrating the distinctiveness of Mifendang’s trade dress and the likelihood of consumer misunderstanding and confusion between Mifendang’s trade dress and Woulmidang’s imitated trade dress.
The court ultimately ruled that Woulmidang use of the imitated trade dress amounted to unfair competition, which is expressly prohibited under Article 2, Subparagraph 1(b) of the Unfair Competition Prevention and Trade Secret Protection Act. Accordingly, the court granted the injunction prohibiting the usage of Woulmidang’s trade dress.
This holding is significant in that it confirms the act of imitating trade dress, commonly practiced in the food service industry, as an act that infringes upon the rights of others. It also sets a precedence for future cases, establishing specific criteria for future rulings.
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