The Nantong Intermediate People's Court entered into the first-instance judgment on the trademark dispute over L'OREAL and 欧莱雅 (L'OREAL's Chinese version), ordering defendants Hangzhou L'OIYIR Cosmetics and Shanghai Meilianni Cosmetics to cease infringement and jointly indemnify 400,000 yuan in damages to the French firm L'OREAL. In addition, the Hangzhou shall cease use of 欧莱雅 in its trade name and pay 100,000 yuan in damages to L'OREAL for unfair competition. 

From 1981 to 2001, L'OREAL registered several series of trademarks of L'OREAL, 莱雅 and 欧莱雅, which are certified to be used on Class 3 goods, i.e. cosmetics, beauty products and perfumes. Co-defendant Hangzhou L'OIYIR was established in June 2004 and engaged in manufactory and distribution of cosmetics with Shanghai Meilianni. In January 2005, Shanghai Meilianni used a logo combining both English and Chinese, L'OIYIR 莱雅 on the packaging of its cosmetics. Hangzhou L'OIYIR advertised and recommended the L'OIYIR line of cosmetics and claimed that the products are from French L'OREAL. 

The Court held the joint distribution of L'OIYIR products by the co-defendants constituted trademark infringement and using 欧莱雅 in its trade name constituted the unfair competition. So ordered.