The 10.3 million yuan in damages has been secured, but the luxury giant doesn’t seem to be in much of a celebratory mood.
At the third-quarter earnings call on the evening of October 12, LVMH Group CFO Cabanis admitted that the lawsuit against Molly Tea had indeed had a negative impact, at least early in the quarter.
Although the court of first instance ruled that Molly Tea had infringed its rights and ordered it to pay damages of more than 10 million yuan, the lawsuit’s conclusion ended up turning the other party into a viral sensation with orders pouring in. Between protecting intellectual property and the pressure of consumer sentiment in the Chinese market, the financial equation behind this lawsuit may be harder to work out than it seems.
$EWY
At the third-quarter earnings call on the evening of October 12, LVMH Group CFO Cabanis admitted that the lawsuit against Molly Tea had indeed had a negative impact, at least early in the quarter.
Although the court of first instance ruled that Molly Tea had infringed its rights and ordered it to pay damages of more than 10 million yuan, the lawsuit’s conclusion ended up turning the other party into a viral sensation with orders pouring in. Between protecting intellectual property and the pressure of consumer sentiment in the Chinese market, the financial equation behind this lawsuit may be harder to work out than it seems.
$EWY