NYC Molly Tea Shops Dispute Ownership of Marks With China Parent

MHL NY LLC and affiliated entities operating Molly Tea shops in Flushing, Queens, and Manhattan’s Chinatown filed suit in the U.S. District Court for the Southern District of New York against Shenzhen Molly Tea Food and Beverage Management Co. Ltd. The plaintiffs allege that the China-based company breached the licensing agreement by imposing materially different terms, forcing the shops to suspend operations. They further contend that the licensor does not own U.S. common law trademark rights in “Molly Tea” and therefore cannot enforce restrictions on the name. The dispute centers on ownership and use of the marks in the U.S. market following the alleged breach.

The complaint seeks declaratory relief regarding trademark ownership and related claims arising from the licensing relationship. The case highlights tensions in cross-border licensing arrangements where common law rights may vest with local operators rather than the foreign parent entity.

Sources: https://news.bloomberglaw.com/ip-law/nycs-renamed-molly-tea-says-it-owns-trademark-not-china-parent https://www.bloomberglaw.com/public/document/ShenzhenMollyTeaFoodandBeverageManagementCoLtdetalvMHLNYLLCetalDo/2?doc_id=X1HIB2HCS758FNQ4HHDSAD1CRD3