Molly Tea ordered to pay Louis Vuitton $1.5m for trademark infringement
A Suzhou court ordered Molly Tea to pay damages and issue a public apology for infringing on seven of Louis Vuitton's registered four-petal flower trademarks.
A court in eastern China has ordered the popular beverage chain Molly Tea to pay 10.3 million yuan (approximately $1.5 million) in damages to French luxury house Louis Vuitton Malletier after ruling that the tea company's logo infringed on the fashion brand's trademarks. The decision follows a lawsuit filed by the Paris-based company in May 2025.
The Suzhou Intermediate People's Court in Jiangsu province found that the Shenzhen-based Molly Tea and a franchise outlet, Dongxia Beverage Shop in Suzhou's Wuzhong Economic Development Zone, infringed on seven of Louis Vuitton's registered four-petal flower graphic trademarks. The court concluded the visual identity used by the defendants created a likelihood of consumer confusion.
Media additions
Under the terms of the June 29 ruling, the financial penalty includes 10 million yuan in economic damages and 300,000 yuan to cover legal and enforcement costs. Additionally, the Dongxia Beverage Shop was ordered to bear joint and several liability limited to 100,000 yuan. Molly Tea is also responsible for a case acceptance fee of 293,800 yuan and a preservation fee of 5,000 yuan. The court has given the company 10 days to make the payment.
Beyond financial penalties, the court mandated that Molly Tea stop using the infringing logo and issue a public apology. This statement must be published on the homepages of six official accounts, including its website and mini-program, as well as its profiles on Weibo, WeChat, RedNote (Xiaohongshu), and Douyin.
Molly Tea, which targets young female consumers, has confirmed to media outlets including Yicai that it intends to appeal the ruling.
Legal Disputes and Brand Expansion
The conflict centers on Molly Tea's use of a four-petal floral motif, which Louis Vuitton argued was highly similar in shape and layout to its iconic monogram, leading to confusion on storefronts and cup sleeves. Legal experts suggest the high compensation amount may be due to the scale of the infringement; the chain has expanded rapidly since its 2021 founding in Shenzhen, operating more than 2,300 stores across 68 Chinese cities and over 50 overseas locations in markets such as the United States, Canada, and Australia.
The case highlights a tension between traditional aesthetics and modern intellectual property law. Some Chinese social media users have defended Molly Tea, suggesting that luxury brands often draw inspiration from Chinese artifacts. One RedNote user argued that such basic geometric shapes have been used everywhere throughout history, not just China
, while another on Weibo claimed Western brands take advantage of the fact that Chinese ancestors didn't file for patents
.
However, IP lawyers emphasize the "first-to-file" principle of the Chinese Trademark Law. Kang Lixia, a partner at Beijing Standzer IP Firm, stated that while traditional cultural elements are in the public domain, the party that first registers a mark gains the rights. She noted that Louis Vuitton's status as a highly recognized mark allows for "cross-category protection," meaning its rights can extend to unrelated product categories like beverages.
The ruling comes as Molly Tea attempts to position itself as a premium purveyor of "Eastern aesthetics" during an aggressive international push into cities like New York, London, and Vancouver. In a paradoxical turn, the company had recently initiated its own trademark litigation in New York against a local partner just weeks before the Suzhou court ruled against it.
Operational Response and Market Impact
Molly Tea has already begun pivoting its visual identity. The company updated its official mini-program member center, replacing its standard black logo with a multicolored or gold version. However, analysts suggest the cost of rebranding thousands of physical storefronts could exceed the legal fines.
The court's decision may signal a shift in how luxury brands protect their assets in Asia. You Yunting of Debund Law Offices told Yicai that this ruling might encourage more luxury brands to launch cross-industry lawsuits against "New Tea" brands that borrow luxury visual vocabularies to elevate their positioning.
Case Summary: LV vs. Molly Tea
- Lawsuit Filed: May 2025
- Court Ruling Date: June 29, 2026
- Total Primary Fine: 10.3 million yuan (~$1.5 million)
- Infringements: Seven registered four-petal flower trademarks
- Required Actions: Cease logo use, pay damages within 10 days, and issue public apologies across six digital platforms
- Current Status: Molly Tea has announced plans to appeal; digital logos have been updated to multicolored/gold versions
The upcoming appeal is expected to focus on whether the compensation level is reasonable, with arguments likely to center on whether consumers in the food and beverage sector are driven more by taste and price than by trademarked graphics.
