Chinese Branding And Trademarking: I Say Blackberry, You Say Redberry

Today's Wall Street Journal has a story on Chinese branding, entitled, "From Hongda to Wumart, Brand Names In China Have Familiar, if Off-Key, Ring" [subscription may be required].  Article highlights the following brand cognates:

  • Hongda and Honda (HMC), motorcycles
  • Chery and Chevy (GM), cars
  • Wumart and Walmart (WMT), retail
  • Rowe and Rover, cars
  • Redberry and Blackberry RMM), mobile phones
  • Baidupedia and Wikipedia, online encyclopedias
  • Baidu Space and MySpace, home page hosting
  • Shanghai Xingbake and Starbucks (Xingbake) (SBUX), coffee

Starbucks and Honda have already brought and won trademark cases in China involving their names and General Motors (owner of the Chevy brand name) reached an agreement with Chery.

The article explains why Chinese companies are so quick to copy:

Branding is in its infancy in China. Few Chinese companies have experience developing international brands -- unlike in the West, where a huge industry of consultants help companies pick unique names and logos and build images.

Many Chinese companies "feel safer following someone who's established rather than striking out on their own" in terms of branding, says David Wolf, chief executive officer of Wolf Group Asia, a consultancy in Beijing. "There seems to be an institutional lack of confidence.

Chris Reitermann, managing director of Ogilvy & Mather Advertising in Beijing, attributes the various mimicries to inexperience and lack of originality. "A lot of Chinese companies don't put much effort into the name they choose," he says. "There's not a lot of thought behind it."

"Often, Chinese executives don't feel the need to invest a lot of money" in developing brand names and images, says Neil Hudspeth, who heads the Asia operations of global branding agency Enterprise IG. "They don't like to pay for services."

That is changing, however, as Chinese consumers become more sophisticated and Chinese companies with global ambitions -- such as computer maker Ltd. and appliance manufacturer Qingdao Haier Co. -- ready themselves to compete in international markets.

"The appetite among consumers for brands is growing faster than corporate awareness," Mr. Hudspeth says.

The article goes on to talk about how badly some of these names will play outside China and how Chinese companies seeking international credibility must start coming up with original brand names.   Here here.

Bottom Line for Business: Trademark your brands in China and consider trademarking similar names and Mandarin translations as well.  Honda and Starbucks eventually prevailed, but it would have been far cheaper for them had they simply trademarked the cognate names.  Of course, it is impossible and cost-prohibitive for most companies to come up with and trademark every possible variation on its brands.  However, when trademarking your brands in China, it always makes sense at least to consider variations and translations as well. 

Comments (19)

Read through and enter the discussion by using the form at the end
keanu zhang - October 19, 2006 6:32 PM

C2C(copy to china) business model is still popular in china when you look into internet industry like web2.0. so the story in your article actually reflects the root cause---innovation. most of chinese companies startuped from mimic and copy, but now i think they are changing because i noticed their TV ad. became more creative and interesting:)

chriswaugh_bj - October 19, 2006 9:00 PM

I have some doubts about the premise of this article. Sure, in cases like the Starbucks rip-off, there was a clear attempt to piggy-back on an established brand. But Chery=Chevy? First of all, GM only recently started selling Chevrolet-branded cars in China, long after Chery had already established its brand here. I'm not sure about Wumart=Walmart, but I suspect that may be a similar case. Secondly, aren't the English names for these comapanies mostly just about being trendy and cool? Sure, Chery is starting to sell cars overseas, but last I heard Wumart only operated in the Beijing and Tianjin areas. Certainly haven't seen there stores anywhere else, or heard of them expanding anywhere else, and even in Beijing and Tianjin they don't have that many stores. But, most importantly, isn't the Chinese brand more important than its silly little English sidekick? Aren't Chinese consumers going to be more familiar with Qirui and Wumei than with Chery and Wumart? And doesn't that increase the gap between their brands and their foreign counterparts? There's a much starker difference between Wumei and Huaerma (or whatever it is Walmart calls itself) than between Wumart and Walmart? And aren't their logos really quite distinct? I can't remember how Chevrolet goes in Chinese, but I don't remember ever having thought, "Gee, that's remarkably similar to Qirui!" Also, the logos are very different.

I thought the GM-Chery dispute was limited to the remarkably similar designs of the QQ and the Spark. I would have thought that had more to do with design than branding, and I thought GM's case wasn't particularly strong.

What else do we have there? Baidupedia vs. Wikipedia? How is this a problem? Wikipedia comes from Hawaiian 'wiki', meaning 'fast', plus the 'pedia' suffix from encyclopedia, doesn't it? 'Wiki' is a very commonly used term these days, and I would be surprised if this were the only example of the suffix 'pedia' being used in this way outside of China. I'm no lawyer, but I don't see a problem with Baidupedia. This may be a case of imitation, but putting this on the same list as the Shanghai Xingbake vs. Starbucks case seems as absurd as demanding the abolition of all surnames beginning with a Mc or Mac for fear people will confuse them with a certain chain of junk food stores. I don't think there have been too many cases of people knocking on Mr McLeod's door looking for a burger.

Similar for Baidu Space and MySpace. Doesn't MSN have its Live Spaces, or something like that? Again, the prefices are different enough and the suffix common enough that I don't see how this could be an issue any bigger than the storm currently raging in my teacup.

I've never heard of Rowe cars or Redberry phones, and although they certainly look like cases of imitation gone too far, a la Shanghai Xingbake, I would prefer to see the Chinese brands before I comment.

Well, I can't see the original article because of their ridiculous subscription, but my point is that one really should consider the Chinese language brands and logos before screaming 'IPR violation'. Maybe the article did that, but what I've seen here doesn't suggest that.

Having said that, Qirui could start having some trouble with Chery as it starts expanding overseas.....

Sam Flemming - October 19, 2006 9:48 PM

Lining: Anything is Possible.
Adidas: Impossible is Nothing.

lirelou - October 19, 2006 10:13 PM

Interesting post, as brand names and trademarks develop their own following. The Vietnamese always exhibited, to my mind, an intense loyalty to Brands. Beer "33" is a good example. In Vietnam, it was a passable beer. In France, it was long out of style. But in the exile communities, it became de rigeur that every Vietnamese restaurant stock "Beer 33". I had heard that when the original brewer of Beer 33 returned to Vietnam, they found it still being brewed and sold (along with Beer "333"). Rather than take the issue to court, they opted to bargain away their goodwill in exchange for other concessions. I believe that it's now being brewed there by Fosters. If the Chinese are as brand loyal as the Vietnamese appear to be (other examples come ot mind: la vache qui rit cheeses, black cat batteries, etc), then the branding stakes are not small.

China Law Blog - October 19, 2006 10:43 PM

Lirelou --

Thanks for checking in and for reminding me of the cheese I enjoyed as a kid living in France and of the beer I drank when I studied there.

My sense is that the Chinese are hugely brand conscious.

China Law Blog - October 19, 2006 10:45 PM

Sam --

Thanks for checking in.

Adidas -- Real basketball players
LiNing -- Washed up replica of a real basketball player

China Law Blog - October 19, 2006 10:54 PM

Chris Waugh --

Thanks for checking in. You raise some good points re Baidupedia and Baidu Space.

But when China United Telecommunications Corp. launched its Redberry wireless email service it announced at its press conference that the name would "extend the image and name of 'BlackBerry' that people are already familiar with."

The Rowe name was given to the car after Shanghai Automotive lost out on buying the Rover name. Chery is one letter off from Chevy and it is difficult to see that as a coincidence.

The article was focusing on these names as copies; it did not opine as to whether they violated any trademarks.

China Law Blog - October 19, 2006 10:56 PM

Kheanu Zhang --

Thanks for checking in. I agree that this copying reflects a lack of innovation and I also agree Chinese companies are beginning to realize the importance of the name and overall image.

Hui Mao - October 20, 2006 12:28 AM

I agree with Chris that you have to look at how the names sound in Chinese before deciding whether someone is trying to copy an established brand name. Qirui (Chery) and Xuefulai (Chevrolet/Chevy) are so different in Chinese that no one will ever even remotely connect the two. Like Chris pointed out, Qirui was an established brand in China long before GM brought Chevrolet to China. I'm guessing that Qirui chose Chery as the English version of their name because it sounds very similar to how Qirui is pronounced in Chinese.

Hui Mao - October 20, 2006 1:06 AM

I've never heard of Hongda motorcycles, but Hongda is the pinyin for several extremely common Chinese names. Characters ?,?,?,?,?, ?,etc. are all 'hong' in pinyin, and ?, ?,are both 'da' in pinyin. These characters are all positive sounding and their combinations are very popular in names of businesses and people. The number of Chinese businesses whose name has the pinyin Hongda is easily in the thousands. For example, a quick web search shows there is Hongda Chemicals (??), Hongda Group (??,a maker of machine tools), Hongda Electric (??), Hongda Decorative Cloth Weaving Company (?? again but is a different company), another ?? in the aluminum business, etc.

chriswaugh_bj - October 21, 2006 4:03 AM

Thanks for the clarification of the Rowe/Rover Redberry/Blackberry cases. However, you seem to have completely missed the point of my comment. Well, Hui Mao explains it all far more clearly than I did.

"The article was focusing on these names as copies; it did not opine as to whether they violated any trademarks."

Well, that clarifies the article, but..... It would seem to me that the difference between copying and violating trademark (or other forms of IPR) is somewhat similar to the difference between tax avoidance and tax evasion: At some point the government has drawn a line between perhaps dodgy, but legal behaviour and downright badness. Whatever, this still makes the inclusion of Qirui/Chery, Wumei/Wumart and Baidu's various products/services on a list that includes both pushing-the-limit dodginess and obvious badness misleading.

As I pointed out, and Hui Mao confirms, Qirui/Chery was a confirmed and established brand here long before GM started marketing Xuefulai/Chevrolet. Not only that, but the dispute alluded to had absolutely nothing whatsoever to do with branding (be it perfectly legal imitation or straight out theft of a trademark) and everything to do with the design of two particular models of car (so far as I remember). Including this in a list including the Shanghai Xingbake vs. Starbucks and other examples of trademark dodginess and outright theft is not a matter of legal distinctions, it's a matter of journalistic dishonesty.

As I tried to point out, and as Hui Mao confirmed, the issue here is one of language and not of any kind of imitation of a brand. Qirui's anglicisation Chery fits well within an established Chinese 'culture' of anglicisation. Some choose the historic approach: Beijing Daxue/Peking University; Qinghua Daxue/Tsinghua University/ Qingdao Pijiu/Tsingtao Beer. Some piggy back on or falsify the historic approach: Qinghua Tongfang/Tsinghua Tongfang, along with others that use some bastardisation or another of Wade-Giles. Some, like all the banks, go for translation: Zhongguo Yinhang/Bank of China. Some just use Hanyu Pinyin: Haier. Some just find an English name they like that roughly approximates the sound of their Chinese name: Fangzheng/Founder, or Lianxiang, which was first Legend and then Lenovo (and now, in China at least, seems to alternate between IBM and Lenovo, depending on how much they want to charge for what seem to be identical products) Some, like Qirui/Chery, go for a rough romanisation: Jili/Geely or Wumei/Wumart.

In short, if I were the editor of the WSJ, based on what you posted, I would have fired the journalist in question. How could somebody who seems to have not even the most basic understanding of the Chinese language or the Chinese economy possibly be an asset to one of the world's most famous and respected business papers?

Oh, and Hui Mao, I agree with you on why Qirui seems to have chosen Chery. But take another look: The majority of English speakers, and speakers of European languages in general, will have a much better chance of pronouncing the brand name correctly (or close enough) if they read 'Chery' than if they read 'Qirui'. Which, at least to my mind, reinforces the point that several of the cases cited by the original article have more to do with language, culture and marketplace than any kind of imitation of brands (legal or otherwise).

Sorry for the unnecessary comment. To sum up: This article, as blogged, seems to have less to do with imitation of brands and much more to do with either lazy or dishonest journalism.

David - October 21, 2006 5:38 AM

What I told Andrew Batson at the Journal (and that didn't make the cut) was that I think nearly every major Chinese company will go through a phase where they will copy the look, feel, designs, and names of others, but that mimicry and imitaiton would be a phase.

As large Chinese companies develop confidence in themselves - and discover how costly it is to go through the legal hassles when they imitate others - they'll grow out of it. Just watch.

David

China Law Blog - October 21, 2006 7:25 AM

chriswaugh --

Thanks for checking in.

Though I am usually the first to bash the media for its loose reporting on China (see and though I am always complaining about how the media will say someone stole someone else's name without even knowing to check to see who actually had the trademark in China, this article was just fine. The theme of the article was that Chinese companies find it easier to copy already existing names than to create their own. The article never once mentioned the word trademark. I do not think it can be disputed that Chinese companies often copy simply because they view that as the safe thing to do. We have spoken with Chinese company owners that say the same thing. Indeed, there is this tendency (though usually on a lesser scale) all around the world. There is a tendency everywhere to copy what has worked. Look at American TV shows. Look at American fashion.

If there was confusion, I take the blame for it because I brought up the word "trademark" in my conclusion as to how companies can fight against cognates. If you are Chevy and you do not want someone using the name Chery on a car, trademark the name Chery. Sure, Chery sounds like Qirui, but so does Cherry and they did not choose that.

Read the full article (if you have not already) and then tell me if you think it so bad.

China Law Blog - October 21, 2006 7:27 AM

David --

Thanks for checking in. I completely agree with you and this is already happening. What is happening in China with respect to both copying and infringement is exactly what has happened or will happen just about everywhere else in the world, including the U.S. The difference is more in when than in how.

China Law Blog - October 21, 2006 8:39 AM

Speaking of copying, check out this article on BBC, that seems to somewhat track the WSJ article, but without any attribution:

http://news.bbc.co.uk/2/hi/business/6067000.stm

chriswaugh_bj - October 21, 2006 9:54 PM

No, I think I'll bow out of this debate after this comment.

Why not Cherry instead of Chery? Who knows. I often find myself wondering why and how Chinese companies chose their English names. How did Jili become Geely? If I had my way, all Chinese companies would be given a choice between a direct translation of their Chinese name, like the banks, or sticking with Pinyin, like Haier, but we'll have to wait until I'm the Benevolent Dictator of the World before that rule can be enforced. If I had to guess, I would say that Qirui became Chery thanks to the linguistic incompetence of whoever was assigned the task of finding an English name. This seems to be the most common method of finding an English name. I seriously doubt there was any kind of copying involved.

And no, I would never try to pretend that imitation of other brands ever happens here. It's not just imitation of foreign brands, either. I just think the journalist should have been more careful and more honest in his compilation of the list. After all, there were plenty of other examples to choose from without accusing companies of "crimes" they quite possibly never committed. If I was the CEO of Chery or Wumart I'd be quite upset at my company's inclusion on such a list.

China Law Blog - October 22, 2006 6:35 AM

Chriswaugh --

Thanks for checking back in. I think it is all my fault. The list was simply of cognates -- names that sound similar. Here is what the article itself says about Chery:

"As it happens, Chery says, its Chery's English name is based on the sound of its Chinese name, Qirui, pronounced che-ray, which means, roughly, "unusually lucky." It sounds nothing like the Chinese name for Chevrolet, Xuefolan, and Chery continues to be the corporate name and the brand in China. But Visionary Vehicles LLC, a U.S. company aiming to bring Chery-built cars to the U.S. says that it won't use the Chery brand name there."

And here is what the article has to say about Wumart:

"Does Wumart Stores have a familiar ring? It could be confused with Wal-Mart Stores Inc. Wumart says its English name is based on its Chinese name, Wu Mei, which means "beautiful products." Nikita Huang, a Wal-Mart spokeswoman in China, says her company 'doesn't have much concern. We believe consumers know the difference.'"

Clyde Smith - January 5, 2007 2:59 PM

I just saw the Chery brand in an article just the other day. It was so obvious what they were doing at first glance.

But I'm particularly fond of Wumart.

I wonder, did they also copy the Wu-Tang Clan's famous logo?

Enter the Wu-Tang Logo
http://www.weeklyhiphopalbums.com/2006/12/special_edition.html

China Law Blog - January 6, 2007 7:18 AM

Clyde --

That's a cool logo and Wumart should copy it. Of course, if Wu-Tang has not trademarked it in China, WuMart (or anyone else) could appropriate it legally.

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