Thailand’s “Luckin Coffee” Controversy and the Crucial Importance of Overseas Trademark Protection

Pine IP
February 4, 2025

The Rise of a “Fake Luckin Coffee” in Thailand

Recently, headlines in Thailand have spotlighted a coffee chain operating under the name and logo of the famous Chinese brand Luckin Coffee, despite having no official affiliation with the original Chinese company. At first glance, one might assume that Luckin Coffee has expanded into Thailand. However, investigations revealed that a local Thai business has been running a “look-alike” chain—raising serious trademark infringement questions.

This article explores how this controversy unfolded, the critical legal principles at play, and why businesses must prioritize overseas trademark registration. We at Pine IP Firm will also share our insights on how to safeguard trademarks abroad, offering practical strategies and tips for protecting your brand in Thailand and beyond.

Unrelated Local Entity Operating as “Luckin Coffee” in Thailand

To be clear: Thailand’s so-called “Luckin Coffee” bears no official connection to the Chinese headquarters. In fact, the legitimate Luckin Coffee in China has publicly stated it has not expanded to Thailand. They denounced the Thai outlet as a “fake store” using an unauthorized brand identity.

How Did This Happen?

A local Thai enterprise known as 50R Group preemptively registered the “Luckin Coffee” name (and a near-identical deer logo) in Thailand back in 2018, before the Chinese Luckin Coffee pursued global trademarks. In 2019, the 50R Group established a Thai corporation named “Luckin Coffee Thailand” and began operating physical stores under this brand by late 2020.

Notably, the 50R Group’s logo is almost identical to the Chinese Luckin Coffee emblem, only flipped horizontally. Unsurprisingly, Thai consumers easily mistook it for the original Chinese brand.

Legal Dispute and Unexpected Outcomes

When the true Luckin Coffee realized what was happening, it filed multiple trademark lawsuits in Thailand in 2021. Initially, a Thai court ruling seemed to favor the Chinese company:

  • First Judgment (2022): The Thai court decided to invalidate the 50R Group’s registered mark and halt further use.

However, 50R Group appealed. In a December 2023 judgment, Thailand’s Intellectual Property and International Trade Court reversed the initial decision and ruled against the Chinese Luckin Coffee. According to this final verdict, 50R Group’s earlier registration grants it legal rights in Thailand—even if the stores are “fake” in practice. To complicate matters, 50R Group is now suing the Chinese Luckin Coffee for damages of 10 billion baht (approximately USD 370 million).As a result, the Chinese Luckin Coffee has no legal grounds to use its own brand name in Thailand. This debacle highlights a fundamental reality of trademark law: “First to file, first to own.”

The Importance of Early Overseas Trademark Registration

The key takeaway is clear: Whoever registers a trademark first in a given country usually holds the superior legal position, regardless of how famous a brand may be elsewhere.

First-to-File Principle & Territoriality (or “Territorial Principle”)

  • First-to-File Principle: The right to a trademark typically goes to whoever files for registration first.
  • Territorial Principle: A trademark is only valid within the country (or region) where it has been registered.

No matter how well-known a brand is in its home country, the first party to secure registration in a foreign jurisdiction is considered the rightful owner there. This is precisely why the genuine Luckin Coffee found itself at a disadvantage in Thailand, despite being hugely successful in China.

Risks of Failing to Register Early

  1. Brand Name Revision: If a local entity already has a similar mark, a newcomer may need to change or invent a new brand name.
  2. Soaring Legal & Settlement Costs: Securing your trademark retroactively can require expensive litigation or settlements.
  3. Reputational Damage: Counterfeit or copycat stores can dilute brand value and confuse consumers in the local market.

Major multinational companies like Apple (iPad) and Starbucks (Starbucks vs. “Xingbake”) have famously paid a high price to reclaim or protect their trademarks in new markets. Even global giants can get caught off guard if they do not file trademarks early.

Global Trademark Protection: Other Notable Disputes

HEYTEA (China) vs. HEETEA (Singapore)

Chinese tea brand HEYTEA faced a local knockoff in Singapore called “HEETEA.” Fortunately, Singapore’s Intellectual Property Office sided with HEYTEA, citing significant visual and conceptual similarities. This demonstrates that IP-conscious jurisdictions can uphold the rights of legitimate trademark owners—if the mark is properly registered and enforced.

Starbucks vs. Shanghai “Xingbake”

Before Starbucks expanded widely into China, a local business registered the Chinese name 星巴克 (“Xingbake”)—effectively “Starbucks” in Mandarin—arguing they had done so legitimately. However, Starbucks managed to prove its extensive international recognition and successfully reclaimed its trademark rights in China, even obtaining monetary damages from the infringing party.

Apple vs. Proview (the iPad Dispute)

Apple needed to shell out a hefty sum to secure the iPad trademark in China from Proview, a local firm that claimed earlier rights. This case vividly illustrates how even top global brands must pay the price for delayed or overlooked trademark registrations.

Korean Companies Overseas

South Korean brands have similarly stumbled in overseas markets when local entities registered their Korean-language marks beforehand. Some have faced “trademark squatters” demanding significant royalties or settlement fees—and have had to invest substantial time and money to buy back their own brand.

Trademark Filing in Thailand: Key Procedures and Considerations

How can a foreign company properly register its trademark in Thailand? Below is a simplified overview:

  1. Preliminary Search & Preparation
    • Check the Thai trademark database to confirm no identical or confusingly similar mark is already registered.
    • Verify the trademark’s eligibility (design, name, goods/services classification).
  2. Filing the Application
    • Submit the application to Thailand’s Department of Intellectual Property (DIP).
    • Foreign applicants typically file via a local agent or representative.
    • Since Thailand joined the Madrid Protocol in 2017, companies already holding a home-country registration may use an International Registration designating Thailand.
  3. Formalities & Substantive Examination
    • Examination Period: Usually 1–2 years.
    • Officials review formal requirements, then conduct a substantive check for conflicts with existing marks or insufficient distinctiveness.
  4. Publication & Opposition Period
    • After passing examination, the mark is published in the official gazette for 60 days.
    • Third parties may file oppositions if they believe the new application infringes their existing rights.
  5. Registration & Maintenance
    • If no opposition is sustained, the trademark proceeds to registration and the applicant receives a certificate.
    • Initial protection lasts 10 years, renewable for subsequent 10-year periods.
    • Use Requirement: Under Thai law, trademarks left unused for over 3 years can be challenged and possibly canceled for non-use.

Additional Considerations

  • Language Issues: English or Korean marks can be directly registered in Thailand. However, if you plan to use a Thai-language version of your mark, consider registering that as well to broaden brand protection.
  • Restricted Elements: Thailand enforces stringent rules against using royal or national symbols in trademarks. Ensure your mark does not incorporate prohibited elements.

Strategies for Overseas Trademark Protection

File Early in Key Markets

If you plan to do business—or even consider future expansion—in a certain country, register your trademark as early as possible. Although it involves upfront costs, early filing can prevent larger financial and reputational risks down the line. Focus on major markets like China, Southeast Asia, the U.S., and Europe.

Utilize the Madrid System

The Madrid Protocol offers a streamlined route for registering in multiple countries through a single international application. However, each designated country conducts its own review. You may still need local counsel to address any refusals or objections.

Collaborate with Local Experts

Regulations, language barriers, and procedural nuances vary by country. Teaming up with experienced local IP attorneys or trademark agents significantly increases your chances of a smooth registration process. We at Pine IP Firm work with a global network of IP law firms, ensuring our clients receive end-to-end support for their international trademark portfolios.

Continuous Monitoring & Enforcement

A trademark registration alone doesn’t guarantee total safety. Monitor the market regularly for any infringing or confusingly similar marks. Take swift action—oppositions, cease-and-desist letters, or legal proceedings—if you discover unauthorized use. Remember to keep an eye on:

  • Domain Names
  • Social Media Handles
  • E-commerce Platforms

Develop a Localized Branding Strategy

In some countries, foreign brand names may be difficult to pronounce or remember. Having a local-language version of your brand can help you connect with consumers and protect your trademark from squatters. For example, many Korean brands opt for a dual strategy: register both their original name and a transliterated local name.

Expert Handling of Disputes

If a dispute is unavoidable, promptly gather evidence of:

  • Your mark’s fame or recognition
  • Any bad-faith intent by the other party
  • Potential consumer confusion

Decide whether litigation or negotiated settlements (e.g., purchasing the trademark or licensing) is the most viable approach. Any settlement must be handled with caution, as it can lead to bigger financial demands if the other side sees an opportunity.

Ongoing IP Education Within Your Company

Ensure that all teams—from product development to marketing—understand how vital trademark checks and registrations are. Adopt an internal process so that each new brand or product undergoes a trademark review before launch. This helps create a culture where brand assets are actively protected.

Thailand’s “Luckin Coffee” case starkly demonstrates how easily even a famous brand can be blocked in a foreign market by a local competitor who files first. Such outcomes can be devastating, from lost market share to legal entanglements and reputational damage.

At Pine IP Firm, our mission is to prevent these pitfalls by guiding companies through effective international trademark strategies. Your brand is an invaluable corporate asset—yet once it’s compromised abroad, regaining rights can be exceedingly difficult and expensive.

If you’re planning an overseas expansion, now is the time to evaluate your trademark portfolio and register in priority markets. With thorough preparation, you can confidently extend your brand across borders without the fear of counterfeits or brand hijackers. Don’t let your company become the next cautionary tale.

Secure your brand today—and build a global presence tomorrow. For more information or personalized guidance, reach out to Pine IP Firm. We’re here to safeguard your brand worldwide.