Muji loses Chinese trademark infringement case

1 min readUpdated May 30, 2025Dec 20, 201911:09 PM

In this article (5)

A Chinese court has ruled Japanese retailer Muji must pay RMB626,000 (US$89,000) and apologize to a local firm after losing a trademark-infringement case, according to the South China Morning Post

Muji had appealed a 2017 ruling finding against its use of a trademark currently held by Beijing Cottonfield Textile Corp, which was registered four years before Muji entered China, its largest market outside Japan. The Chinese characters in the trademark translate as “Unbranded, quality goods”.

The phrase was owned by Cottonfield subsidiary Natural Mill. Muji was sued by Beijing Cottonfield and the trademark’s original owner Hainan Nanhua in 2015.

China’s appeals court ruled against Muji this week saying “Beijing Cottonfield Textile Corp has the exclusive rights to the trademark… others may not infringe on that right without permission,” according to the South China Morning Post report.

AdvertisementAdvertise with usMobile 320×100

What this means

This definitive ruling against Muji for trademark infringement in China is a stark reminder of intellectual property complexities for foreign retailers. The RMB626,000 fine and forced apology by the Japanese retailer to Beijing Cottonfield Textile Corp puts pressure on all international brands to conduct rigorous due diligence on local IP registrations before market entry. Unlike Muji's apparent oversight, competitors must now ensure their brand elements are entirely clear, avoiding conflicts with existing trademarks, even if those are not directly competitive. The legal system has clearly prioritised the prior registration by Beijing Cottonfield, establishing a precedent. The specific thing to watch next is how Muji adapts its branding and marketing within China, its largest market outside Japan, to avoid further disputes and rebuild consumer trust.

Wei Zhang

Questions & Answers

What penalty has Muji been ordered to pay?

Muji must pay RMB626,000 (US$89,000) and issue an apology to Beijing Cottonfield Textile Corp. This ruling comes after they lost a trademark infringement case in a Chinese court this week.

When did Muji first enter the Chinese market?

The article states Muji entered China, its largest market outside Japan, four years after Beijing Cottonfield Textile Corp registered the trademark. The exact year of Muji's entry is not specified.

Who originally owned the trademark Muji was found to infringe upon?

The trademark in question was originally owned by Hainan Nanhua, with its subsidiary Natural Mill owning the phrase. Beijing Cottonfield Textile Corp subsequently held the exclusive rights.

What does the Chinese trademark used by Muji translate to?

The Chinese characters in the trademark that Muji was found to be infringing upon translate as “Unbranded, quality goods”. This phrase was owned by Cottonfield subsidiary Natural Mill.

Reader pulse

Muji's IP loss in China:

18,285 votes so far