In March 2025, Thailand’s Central Intellectual Property and International Trade Court (IP&IT Court) issued a landmark judgment in favor of Luckin Coffee, China’s leading retail coffee chain. The judgment marked a significant turnaround following earlier trademark litigation involving Luckin Coffee from 2021 to 2023 that had generated widespread public attention and raised questions about the protection available to legitimate foreign brand owners in Thailand.

In a significant subsequent development, Thailand’s Court of Appeal for Specialized Cases has now affirmed the IP&IT Court’s judgment in its entirety.

The appellate decision brings clarity to one of Thailand’s most closely watched trademark disputes. Significantly, this is the first case in Thailand to formally recognize the trademark squatting principle. The Court of Appeal confirmed that Luckin Coffee has a better right to the disputed mark and ordered cancellation of the defendants’ trademark registration—a key application of the “better right” doctrine. The court also upheld the substantial damages awarded at first instance, providing important guidance on assessing harm from systematic trademark squatting.

Award-Winning Judgment Affirmed in Its Entirety

The significance of the first-instance judgment extended beyond the outcome for Luckin Coffee. The IP&IT Court judgment was subsequently recognized in the IP&IT Court’s Distinguished Judgment Awards in 2025, reflecting the complexity, novelty, and legal significance of the issues considered in the case.

The defendants nevertheless appealed the judgment, challenging several key aspects of the IP&IT Court’s decision. Luckin Coffee continued to entrust Tilleke & Gibbins as their sole attorney to pursue the case at the appellate level.

After considering the defendants’ appeal and Luckin Coffee’s submissions in response, the Court of Appeal affirmed the first-instance judgment in its entirety. The judgment was announced on July 8, 2026.

Better Right to the Marks

The Court of Appeal confirmed Luckin Coffee’s superior rights. The orders include cancellation of the defendants’ trademark registrations, prohibitions against using the “Luckin Coffee” marks, the Chinese characters “瑞幸咖啡,” and the “deer device” in connection with the defendants’ coffee business, as well as orders requiring changes to the defendants’ corporate name and corporate seal.

A New Approach to Damages in Trademark Squatting Cases

One of the most significant aspects of the appellate judgment is the Court of Appeal’s affirmation of the damages award—the largest in Thai intellectual property history. The Court of Appeal upheld the award of THB 10 million in damages, together with continuing damages of THB 100,000 per day from the filing date until the defendants cease their infringing activities. As of the judgment date, the total reached 856 days, bringing the continuing damages to more than THB 85 million and the total award to more than THB 95 million (approximately USD 3 million)—the highest damages ever granted by Thai courts in an intellectual property case.

Historically, obtaining substantial damages in trademark infringement cases in Thailand has been challenging, particularly where actual financial loss is difficult to quantify. Trademark squatting cases present an even more complex issue. The harm may extend beyond diverted sales or lost profits to include disruption to market entry, obstruction of business expansion, reputational harm, and the costs of reclaiming legitimate trademark rights.

The Luckin Coffee judgment demonstrates that damages assessment need not be confined to a narrow calculation of direct lost sales.

In reaching its decision, the Court of Appeal considered the overall circumstances and severity of the defendants’ conduct, including the nature and extent of the infringement and its broader impact on Luckin Coffee’s trademark rights and business interests. The substantial lump-sum damages, combined with continuing daily damages until cessation of infringement, reflect an approach that recognizes the distinct and ongoing harm caused by systematic trademark squatting.

By affirming the damages award in its entirety, the Court of Appeal has endorsed this approach. The judgment confirms that commercial harm from trademark squatting may be assessed based on the overall nature, severity, and continuing impact of the bad-faith conduct. This provides an important reference point for future trademark enforcement cases where true commercial harm cannot readily be captured through conventional calculations of lost sales or profits.

No More Doubts

The earlier litigation involving Luckin Coffee generated significant discussion about the protection of legitimate international brand owners in Thailand. The first-instance judgment addressed the substantive question of trademark ownership and confirmed Luckin Coffee’s prior and better rights, establishing a clear precedent for cancellation of improperly registered trademarks.

The Court of Appeal has now confirmed the judgment in full.

The result is significant not only for Luckin Coffee but also for other international businesses facing trademark squatting in Thailand. This case establishes three key precedents: (1) the first recognition of the trademark squatting principle by Thai courts; (2) application of the better right doctrine to cancel improperly registered trademarks; and (3) the highest damages award in Thai intellectual property history. It demonstrates that with a carefully structured litigation strategy and sufficient evidence of bad-faith conduct, Thai courts are prepared to cancel improper trademark registrations, impose broad injunctive relief, and award substantial damages reflecting the true commercial impact of trademark squatting.

For Luckin Coffee, the doubts that once surrounded its trademark rights in Thailand have now been answered.