China busts fake Disney hotels

China has fined five fake Disney hotels for infringing copyright law ahead of the opening of a new $5.5 billion Walt Disney theme park and shopping centre in Shanghai.

Disney opened phase one of its Shanghai theme park – the world’s largest Disney retail store – in May. It features a 5000 sqm of immersive shopping experience and products featuring popular Disney characters, along with an outdoor plaza.

In the second quarter of next year, Disney will open the Shanghai Disney Resort, which includes a retail precinct called Disneytown, with 50 international brand tenants in a 46,000 sqm outdoor lifestyle mall. It will be accessible from the resort and within walking distance of the Shanghai Disneyland Hotel and Toy Story Hotel.

China state-run news agency Xinhua news says five hotels have been caught using the Disney trademark on signs, writing and on their websites trying to establish a link with the upcoming resort. All were within the Shanghai Pudong financial district.

The Shanghai Municipal Administration for Industry and Commerce (AIC) said all of the hotels were owned by the Shenzhen Vienna Hotels Group.

Last month, China’s government granted special trademark protection to Disney in recognition of its investment in the giant theme park.

According to Xinhua, the hotels were fined a total of 100,000 yuan ($15,656).

“Hoping to cash in on the resort and attract customers, [the hotels] not only infringed trademark rights, but are also suspected of unfair competition,” Xinhua reported.

Other hotels are being investigated for similar breaches as the government clamps down on widespread misuse of brand names, trademarks and intellectual property in China.

One of the five hotels fined described itself as the “Disney branch”, despite being more than 15km from the site of the park.

The hotels used the Chinese characters for the Disney name in their branding: 迪斯尼

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