Auction house hammers copycats

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London-based auctioner Sotheby’s has won an infringement suit against a group of Hong Kong firms in a ruling passed on 22 May. The businesses had been operating as shell companies for a Chinese parent firm that used the same font employed in the famous brand’s Far Eastern activities. When pronounced phonetically, the characters used in the infringing firm’s business title emerge as ‘Su Fu Bi’ – clearly intended to remind traders of a more reputable seller.

Sotheby’s Asia CEO, Kevin Ching, said: ‘They were using our copyrighted materials and brochures, and marketing them as if those were their business and auctions. That is totally calculated to mislead, which we cannot accept – it damages our international reputation.’ Although Ching said that he did not think seasoned buyers would have fallen prey to the scam, he expressed concern that first-timers may have been caught out.

Ching was promoted to CEO a year ago following his predecessor Henry Howard-Sneyd’s move to the role of deputy chairman of Sotheby’s Europe and Asia: team-boosting steps that reflect the growing importance of Hong Kong to the firm’s economic strength. While it has branches in Shanghai and Beijing, it cannot carry out auctions in those cities as they would contravene China’s mainland laws. Despite its status as a Chinese territory, Hong Kong’s regional laws are different, allowing auctions to go ahead. Ironically, this is also why the infringing shell companies were able to flourish.

Philippa Edward, commercial manager of trademark watching company TMDS, said: ‘I congratulate Sothebys on closing down such a bold and audacious attack on their copyrighted material - it just goes to show that in the battle against trademark infringement you can never take your eye off the ball.’

Sadly, however, the lawsuit does not mark the end of Sotheby’s trademark woes: earlier this month, the house was forced to start proceedings against a separate firm touting itself as ‘Sichuan Sotheby’s’. The new alleged infringer had taken out advertisements in a range of Hong Kong newspapers making the somewhat spurious claim that it was planning to auction paintings that had been carried onboard a Chinese spacecraft.