Hermes is in a spot of bother after it failed to register the name it's known by in China.
Apparently the Hermes name is difficult for the Chinese to pronounce, and so the company is known as Ai Ma Shi there. It's a common practice for a company to go by a different name abroad, but firms need to be abreast of the issue and register both titles. Sadly when Hermes tried to register its Chinese name recently, it discovered a local apparel firm had beaten them to it. This Chinese clothing line secured the trademark right in 1995.
It's a bit difficult for Western fashionistas to understand, as Hermes still has that Hermes name under its belt. However Beijing lawyer Stan Abrams says the Chinese version is always more valuable than the original foreign brand name.
Unless Hermes can convince the China Trademark Appeal Board to reverse their decision, they could actually find themselves infringing the copyright of this Ai Ma Shi clothing company. Can you imagine some small company suing Hermes for infringing their trademark? What a sticky situation for the luxury leader. It certainly serves as a lesson for all high end designer labels looking to expand abroad!
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