China's supreme court suspends Castel trademark fine

China's supreme court has suspended a CNY34m (US$5.6m) fine levied on French wine group Castel over a trademark dispute with a local producer in the country.

Castel said this week that it has succeeded in blocking the fine, after it appealed to the supreme court towards the end of last year.

The supreme court’s decision overturns an earlier ruling in the Zhejiang Provincial Superior People’s Court, which last year ordered Castel to pay CNY34m (US$5.6m) in damages to Panati Wine for infringement of the Ka-Si-Te trademark.

There will now be a retrial, said Castel. It believes that its chances of eventual success have increased following the supreme court decision, which found that the lower court wrongly applied commercial law.

‘Castel Freres is prepared to take any measures required to protect its legitimate interests in China,’ the group said late last year.

In March 2013, Castel announced it had registered the name Kasidaile as a trademark in China.

This story was first reported on Decanter.com sister site, Decanterchina.com.

Written by Chris Mercer

Chris Mercer is a Bristol-based freelance editor and journalist who spent nearly four years as digital editor of Decanter.com, having previously been Decanter’s news editor across online and print.

He has written about, and reported on, the wine and food sectors for more than 10 years for both consumer and trade media.

Chris first became interested in the wine world while living in Languedoc-Roussillon after completing a journalism Masters in the UK. These days, his love of wine commonly tests his budgeting skills.

Beyond wine, Chris also has an MSc in food policy and has a particular interest in sustainability issues. He has also been a food judge at the UK’s Great Taste Awards.