"Zhongyuan Petrochemical" gas station is under investigation! Also "Shenguo Petrochemical" and "Zhongtun Petrochemical"…

According to China News Service of the Central Broadcasting and Television General Station, over the past two days, a gas station called “Zhongyuan Petrochemical” in Luquan District, Shijiazhuang, Hebei has drawn public attention. The “Yuan” in “Zhongyuan Petrochemical” refers to the “Yuan” in “garden,” whose shape looks very similar to the “Guo” character. In addition to the “Yuan” character, the entire logo matches the font of the “Sinopec” trademark of China Petrochemical; the only exception is that the “Yuan” character of this park uses a special writing style, which makes it look even more like the “Guo” character. Not only the characters— the gas station’s exterior decor, the red background with white lettering design, and even the abbreviations of the English letters are all highly similar to “Sinopec.”

In response, the involved gas station said their fuel sources are legitimate, and that their business registration name and operating qualifications have also been approved through lawful procedures. However, having legitimate administrative approval procedures—does that mean they can “cut corners” on the signage? Legally, how should this kind of highly imitative “piggybacking on someone else’s brand name” behavior be defined?

The gas station at the center of the controversy is located in Luquan District, Shijiazhuang. In response to netizens questioning whether it is a “sham gas station,” the person in charge of the station, Mr. Yang, told China News Service that the station has a valid business license and was registered with the authorities in 2010; its full name is “Shijiazhuang City Luquan District Zhongyuan Petrochemical Baichigan Gas Station.”

Mr. Yang said: “Our paperwork and business license are just those few words; they were all issued through legitimate approvals. When we buy fuel, we need to use proper VAT invoices.”

If it has legitimate approval procedures, why are its red-background white-letter sign and its Chinese and English signage highly similar to Sinopec? Aside from the Chinese font “Yuan” character looking like “Guo,” its English logo, SNOPEC, differs from China Petrochemical’s SINOPEC by only one letter “I.” In this regard, Mr. Yang argued that the name and signage are not deliberately imitating.

Mr. Yang said: “The English letters are put together from the children’s names—choosing one here and one there, picking only those few characters and pasting them on; there’s nothing deliberate about it.”

It is understood that relevant departments in Luquan District promptly went to the site to conduct verification. After verification, it was found that the gas station had unlawfully used a door sign and facade decor similar to Sinopec; it has been ordered to dismantle the “Zhongyuan Petrochemical” door sign and facade decor. Mr. Yang said that they have already received a notice to begin rectification and dismantling of the related signage.

Regarding the conduct of the involved gas station suspected of unlawfully using an insignia that is similar to others’ and has a certain impact, the Shijiazhuang City Luquan District Market Supervision and Administration Bureau has filed a case for investigation and will handle it in accordance with the law based on the results.

Besides the “Zhongyuan Petrochemical” gas station in Luquan District, Shijiazhuang, the “piggybacking on brand names” phenomenon has been rampant in the gas station industry. In many places, there have been such piggybacking examples as “Zhongyuan Petrochemical,” “Shenguoh Petrochemical,” and “Zhongdun Petrochemical.”

Sinopec and PetroChina have repeatedly issued reminders. In this year’s “3·15,” Sinopec’s official video account also specifically released an anti-counterfeit video as a reminder:

• Tactic 1: Playing with words in the station name
  This is the most commonly used method by fake gas stations. By changing one or two characters in the station name, at a glance it looks no different from a legitimate Sinopec gas station, thereby deceiving drivers and earning their trust.

• Tactic 2: High-copy imitation of the facade design of fake gas stations
  The shape, color, and content are copied to be very similar to legitimate Sinopec gas stations. Everyone should be sure to look clearly at the content on the brand columns before entering the station.

• Tactic 3: Imitating the fuel dispenser logo in a concealed way
  Some fake gas stations even imitate the fuel dispenser. At first glance, people think it is the original logo of Sinopec, but in fact it is industrial petrochemicals.

• Tactic 4: Convenience store design similar to that of fake gas stations
  The convenience store is named Kuaijie, which differs by only one character from Sinopec’s EasyJoy. In addition, the English color scheme and signage are basically indistinguishable.

So, with a valid business license and administrative approval procedures, can they “catch a ride” on commercial signage? Zhao Zhanling, an executive special research fellow at the Intellectual Property Center of China University of Political Science and Law, clearly pointed out that administrative approval qualifications and trademark infringement are two entirely different legal concepts. Such conduct may violate relevant provisions in the Anti-Unfair Competition Law, namely that “operators shall not carry out confusing acts that cause people to believe they are the goods of another person or that there is a specific connection with another person.”

Zhao Zhanling emphasized that for this type of conduct suspected of infringement, the law provides clear routes for rights protection and supervision. They may be investigated and handled by the market supervision and administration department, or the injured party may sue in court.

Zhao Zhanling introduced that rights holders can protect their rights from two angles: one is to file a civil lawsuit in court, claiming the other party constitutes trademark infringement and seeking civil damages; the other is to report to the market supervision and administration department. If the investigation is verified and it is confirmed that trademark infringement is constituted, the market supervision and administration department should order the infringing party to stop the unlawful conduct and impose a fine.

Source: Supervised by China News Service, Central Broadcasting and Television General Station: Liu Hao

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