Trademark Infringement. Given License Processing

OEM had been rising in the UK in the 1920s, and started prevalence in the global. Nike of United States is the most successful OEM business model in the world. A growing number of world famous brands have shifted production to China basing on cheap labor market and manufacturing capabilities in the China. As the market's growing, there are more and more disputes occurred that OEM companies are claimed to infringe the domestic trademark rights. But people have not formed a unified view on this issue. So it is necessary to discuss OEM on the law in a depth level.This paper takes OEM business model for the study object. This article is divided into four parts:In the first part, the author introduces the basic problems of OEM, such as concept, classification and legal attribute. Author believes that OEM is a contact behavior of machining and undertaking. Then author reveals the nature of OEM further by making comparison of OEM and parallel imports, special permission of operation.In the second part, the author first lists the laws, regulations and rules of OEM to see the legislative attitude in China. Then the author concludes three different approaches in the problem whether OEM constitutes infringement from the theoretical and practical. There are several different standards to classify the infringement type caused by OEM. The author also points out that there are three factors to should be considered, namely, the mainly interests of trademark infringement, regional of the trade trademark and the division of labor and cooperation. First, the machining enterprises are not the max profiteers. Second, trade mark is regional rights. It dose not allow domestic trade mark rights extend to the outside. Third, we can not abolish OEM completely corroding the economic development and can not exert too heavy responsibility to the processing enterprises.In the third part, combined with the relevant case of local court, the author discusses the component elements (namely harm facts, damage results and causality) of the tort on civil law emphatically. The author draws the conclusion that OEM does not meet with the three elements. Therefore processing enterprise does not constitute a trademark infringement.The forth part is the purposes of writing this article. We must consider how to make prefect on the legislative, executive and judicial when legal issues rise. This article also follows this rule. First, the author points out that we can improve the legislation by consummating several substantive laws. Then the author analysis the "dual system" in enforcement and judicial and points out that there are still several difficulties of the management exist. These remain need to be solved in the future. Finally, the author proposes some measures and suggestions to prevent domestic enterprises from risk.