[Legal Daily] The court of second instance held that trademark rights are territorial in nature. The criterion for determining whether a product constitutes infringement should be based on the authorization of the domestic registered trademark holder, not on whether the source of the sold product is consistent. Aotiva Company is the exclusive rights holder of the relevant trademarks within China. A certain trading company in Fuqing City imported the involved products without permission, constituting infringement, and was therefore ordered to cease the infringement, destroy the products, and compensate for losses. Similarly, in Chongqing, the case between Aotiva Company and Beigou Company was also reversed on appeal, with the court of second instance ruling that the importer had infringed upon the rights of Aotiva Company.
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