SIAD Macchine Impianti S.p.A (SMI) has won a court case against Sead Industrial Gas Engineering (Hangzhou), Co. Ltd (Seadgas) over the latter’s wrongful registration and illegal use of SMI’s Chinese business name, Xi Ya Te.
The District Court of West Lake District of Hangzhou, China, ruled in favour of SMI, stating that Seadgas must immediately change its Chinese business name and remove it from all signage and advertising within 30 days. In addition, SMI received damages of around ¥200,000 ($1,700).
Five years ago, SMI terminated discussions with Seadgas’ controller Hui Cai regarding a possible venture. However, during the discussions and without SMI’s consent, Cai wrongfully registered SMI’s Chinese name of Xi Ya Te for his own company’s use.
At the time, Cai admitted that he had improperly registered the name to try to coerce SMI to agree to a joint venture with other companies that Seadgas was involved with.
SMI has used its English name ‘SIAD’ and its Chinese name in the North Pacific rim country for two decades. As the company’s CEO Paolo Ferrario highlighted, “With this ruling, our existing and future Chinese customers can now be assured they will receive SMI’s high quality, energy efficient and highly engineered air separation plants and compressors from our Chinese subsidiaries SIAD Engineering (Hangzhou) Co., Ltd. and SIAD Macchine Impianti (Trading) Shanghai Co. Ltd, without having potential confusion created in the market by an imposter.”