Luckin Coffee lost a trademark infringement case against Royal Thai 50R Group. According to a report by Thailand**, the Thai Intellectual Property and International Court announced that Luckin Coffee lost the case and immediately executed it. Royal Thai 50R Group has registered the Luckin brand trademark in Thailand and has opened a number of stores in the past two years. Previously, Luckin Coffee had issued a statement calling these stores "counterfeit stores".
Royal Thai 50R Group is a Thai local enterprise engaged in the diversified operations of retail, new energy, tourism, real estate and food and beverage. The group has registered the Luckin brand trademark in Thailand and operates more than a dozen Luckin coffee shops in Thailand. Although many people know that Luckin Thailand is a so-called "copycat store", it is legal to open a store because it is the first to register a trademark in Thailand and comply with local laws. This may be the main reason why Luckin Coffee lost the lawsuit.
The defeat of this lawsuit will have a significant impact on the business development of Luckin Coffee in foreign markets. As the first coffee chain brand in China with more than 10,000 stores, Luckin Coffee plans to expand overseas markets while making efforts in the domestic market. This case provides some experience and lessons for Chinese enterprises to deploy overseas, and reminds domestic enterprises to strengthen intellectual property protection.
As early as 2019, Luckin Coffee began to explore its international layout and cooperated with Kuwaiti company The Americana Group to enter the Middle East and Indian markets. However, in 2020, it was delisted due to a financial fraud scandal, and the internationalization strategic plan was shelved. As business gradually improved, Luckin revisited overseas market expansion, with Southeast Asia as its primary target, which includes Indonesia, Singapore and Thailand. However, the defeat in Thailand will have an important impact on the development of Luckin Coffee's overseas business.
Summary and outlook
Luckin Coffee lost a trademark infringement case against a Thai company, a result that has lessons for Luckin Coffee and other Chinese companies to expand overseas. Despite the challenges, it also presents an opportunity for Chinese companies to strengthen their IP protection in the international market. As Chinese companies continue to expand overseas, similar cases and disputes are likely to increase, reminding domestic companies to strengthen IP protection to make it stronger, more sophisticated and more transparent.