TWE is facing an appeal over the trademark case

TWE is facing an appeal over the trademark case

Treasury Wine Estates (TWE) has said it is “confident” of protecting its Penfolds trademark in China after it emerged it is embroiled in a long-running legal battle over the brand. 

The case has seen an “individual” in China attempt to claim the rights to Penfolds' Chinese trademark 'Ben Fu'. TWE was successful with an initial legal challenge, the company said, but an appeal has been launched by the other party. 

“This appeal is still pending and it will take time for the Chinese legal system to process this matter,” Treasury said in a statement to just-drinks today (15 July). 

“TWE is confident it is the lawful owner of the trademark for Ben Fu in China." 

The Australian Financial Review, which first reported the story, claims the individual figthing the case is the same “trademark squatter” who won a legal fight with Castel over trademark infringement last year. 

TWE has been affected in China by the government's austerity measures. Its first-half earnings in Asia fell by 63% to AUD4.9m, partly due to the problems in the country. 

The firm is currently being restructured by its CEO Michael Clarke after enduring a troubled time of late, including a US$145m writedown in the US last year.