A jury finds an electronics seller willfully diluted the HYUNDAI mark
Written submission filed by Hyundai Motor. (Photo=U.S. District Court for the Central District of California)
Hyundai Motor Company has won a trademark infringement lawsuit in the United States against an electronics company using the ‘HYUNDAI’ brand, after successfully persuading a jury.
Awaiting the court’s final judgment, Hyundai Motor has requested a threefold increase in damages, an injunction to prohibit trademark infringement, and the cancellation of the trademark registration.
On May 8 (local time), Hyundai Motor submitted a written request to the U.S. District Court for the Central District of California against Hyundai Technology Group Inc., demanding ▲a prohibition on the use of the ‘HYUNDAI’ name, ▲an increase in damages, and ▲the cancellation of the trademark registration. Previously, the jury in this case had awarded $2.5 million (approximately 3.7 billion won) in damages, acknowledging trademark dilution and false association caused by Hyundai Technology’s use of ‘HYUNDAI’. Going beyond the verdict, Hyundai Motor has now strongly requested increased damages and robust legal measures to completely prevent any future use of the trademark.
The lawsuit began in March 2023 when Hyundai Motor filed a suit for trademark infringement and unfair competition. Hyundai Motor has argued that Hyundai Technology Group Inc., by selling electronics such as tablets, laptops, and monitors in the U.S. under the ‘HYUNDAI’ trademark, misled consumers into believing it was an affiliate of Hyundai Motor Group. Hyundai Technology Group Inc. has no affiliation with Hyundai Motor.
On its website and elsewhere, Hyundai Technology published information that could cause confusion with Hyundai Motor Group, using phrases such as “founded in 1947 by Chung Ju-yung in Korea,” “the Hyundai brand is ranked 36th in global brand value,” and “a global leader in automobiles, shipbuilding, construction, steel, and technology.” Hyundai Motor described this as a “false act of association that misappropriates the history and reputation of Hyundai Motor Group.”
In April, the jury ruled in favor of Hyundai Motor. The jury found that Hyundai Technology had willfully diluted the ‘HYUNDAI’ trademark and engaged in false affiliation and false designation of origin. It also acknowledged that Hyundai Technology’s actions involved malice or a willful disregard for Hyundai Motor’s rights. Consequently, the jury set the damages owed to Hyundai Motor at $2.5 million.
However, on this day, Hyundai Motor initiated further legal action, arguing that the compensation was insufficient. First, Hyundai Motor requested a permanent injunction from the court. This means asking the court to permanently bar Hyundai Technology from using the ‘HYUNDAI’ name in the U.S. market. The request included a ban on its use on products, packaging, and advertising; a ban on URLs like ‘hyundaitechnology.com’; a ban on its use on online platforms like Amazon; and a ban on any expressions that suggest a relationship with Hyundai Motor.
Hyundai Motor stated, “Hyundai Technology is still selling ‘HYUNDAI’ branded electronics,” adding, “the low-quality electronics have damaged the image of our automotive brand.” According to materials attached to Hyundai Motor’s filing, consumers posted reactions on social media such as, “Hyundai Technology’s products make me doubt the Hyundai car brand,” and “I will never buy a Hyundai-related product again.”
Internal emails from Hyundai Technology, secured during the trial, were revealed to contain phrases such as, “Let’s use an image that connects us to the Hyundai motor division,” and that they would “piggyback on the Hyundai brand.”
Accordingly, Hyundai Motor demanded that the trademark registration itself be declared invalid and canceled. Hyundai Motor explained, “The defendant is suspected of committing bribery and fraud in the process of acquiring the trademark rights from Hyundai Bioscience in the past,” and that “the defendant paid $1.55 million (approximately 2.3 billion won) under the pretext of brokerage, and there is evidence that a portion of this money flowed to the chairman of Hyundai Bioscience.” It added, “A separate corporation was also established to conceal the identity of the buyer.”
Furthermore, Hyundai Motor requested an increase in damages based on the federal Lanham Act. It emphasized that the current jury award of $2.5 million should be increased to a minimum of $6.59 million (approximately 9.7 billion won) and a maximum of $7.5 million (approximately 11.1 billion won).
The court is expected to review Hyundai Motor’s requests and determine the final amount of damages in its ruling.
Michael Herh
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