Viagra's Functioning Problem Extends To China Trademarks

Thanks drugwonks.com for the "extend" idea.  I too could not resist. 

A Chinese appellate court just ruled against Pfizer in a trademark suit against Chinese drug maker Guanzhou Welman. 

Full Disclosure:  I own a very small amount of Pfizer stock, which means I go into this post very unhappy with Pfizer.  Pfizer also bought Upjohn, the biggest and best company in my hometown of Kalamazoo, Michigan, and it just a few weeks ago announced massive layoffs that will likely devastate "the Zoo." 

So please forgive me for gloating when I point out that Pfizer just lost a trademark suit appeal in China and deservedly so.  Pfizer sued Guanzhou Welman for Guanzhou's use of the Chinese name "Wei Ge," a commonly used local reference in China to Viagra.  Wei Ge means "great man."

The All Roads Lead to China blog summed up the case rather nicely:

• Pfizer releases the little blue pill onto the market, and it becomes a huge success;
• The pill becomes know as Wei Ge in shops;
• Guangzhou Welman, a local Chinese pharmaceutical company also produces an anti-impotence drug and registers it under the name "Wei Ge"
• Pfizer sues and loses and then loses again at the appellate level

All Roads then goes on to emphasize the need for foreign companies to register their trademarks early in China: 

For Pfizer, today provided more support for my advice to anyone who manufactures anything anywhere: register your patents and trademarks early. The little purple [Rich, it's BLUE!] pill has become the poster child for what can happen when companies do not plan their IP strategy, and how little can be done after the fact.

He is absolutely right. Pfizer blew it.  China is a first to file country.  What this means is just what it says: the first to file a trademark gets it. Guangzhou Welman understood this.  Pfizer apparently did not.  Now it is always possible the Chinese courts will eventually rule in Pfizer's favor as some sort of salve for the West, but based on my understanding of the facts in this case, it most emphatically should not. 

Pfizer came into China and failed to play by China's clear rules, which by the way, are the rules in most countries.  I am guessing that in addition to bringing a trademark claim, Pfizer is also asserting a claim for unfair competition against Guangzhou Welman.  As for the trademark, this case seems like such a clear-cut loser for Pfizer I have to wonder whether the media somehow have the facts wrong or whether Pfizer is just seeking to keep this case alive so as to avoid having to report yet more bad news to its already disgruntled shareholders.  Either way, I am guessing Pfizer is feeling pretty blue right now.