McDonalds Loses Legal Battle Against Family-Owned Kuala Lumpur Business
On September 8th, 2009, the Malaysian Federal Court settled an eight-year legal battle between family-owned Kuala Lumpur “McCurry” restaurant and the international McDonalds fast-food firm. The suit, filed in 2001 by the McDonalds corporation, claims that the McCurry restaurant name infringes upon McDonalds’ trademarked “Mc” prefix. Though the McCurry restaurant claims its name is a shortened form of “Malaysian Chicken Curry,” the McDonalds Corporation initially won the suit in a 2006 claims court ruling.
However, McCurry went on to successfully appeal the first decision. Following the appellate ruling, McDonalds took the case to the Malaysian Federal Court—the highest court in Malaysia.
Tuesday’s ruling against the McDonalds suit finally puts the issue to rest, allowing the McCurry restaurant to continue using the “Mc” prefix in its company name. The ruling also provides $2,900 to the McCurry company to offset legal fees.
While the ruling is a victory for small business-owners, the final verdict is projected to shake global confidence in the Malaysian market, setting precedent for legal usage of trademarked symbols. Local use of international trade symbols (such as the “Mc” prefix) is seen as a threat by the McDonalds Corporation and other large businesses, as it may cause brand confusion and lessened profit margins in the region.
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