On October 20, 2018, a catering company in Chengdu set up its first directly-managed restaurant "PAPA FRYING STEAK HOT POT (restaurant near the Southwest Jiaotong University)". By the end of November 2020, the company had developed four directly-managed restaurants and 64 franchisees in 51 cities across China. In 2019, the hot pot brand won a number of titles such as "2019 Popular Hot Pot Brand", "2019 Most Valuable Catering Brand for Commercial Investment" in Chengdu. In May 2020, the word and device trademarks related to "PAPA FRYING" were approved for registration by China National Intellectual Property Administration, and the catering company enjoyed the exclusive right to use the registered trademarks in word and device.

On August 22, 2019, Mr. and Mrs. Wang established Chengdu PAPA FRYING Catering Service Co., Ltd. with both of them as shareholders. In December 2019, and July and December of 2020, they successively established three branches, and meanwhile set up three hot pot restaurants. The above branches and restaurants all used almost the same logo, service name and decoration as those of "PAPA FRYING", which caused confusion among consumers and misled the consumers that these three hot pot restaurants were franchisees or directly-managed restaurants of "PAPA FRYING". It has been verified that as of June 3, 2021, in less than two years, the gross revenue of the above three restaurants exceeded 27.05 million yuan, and the total infringement profit of more than 3.71 million yuan.

The Chengdu Intermediate People's Court held in the first instance that, in combination with the fact that Mr. and Mrs. Wang had set up a restaurant next to the plaintiff's restaurant near the Jiaotong University, and they were fully aware of the hot pot restaurant and its good operating conditions, and therefore, the branches and restaurants set up by Mr. and Mrs. Wang which were extremely similar to the plaintiff's "PAPA FRYING" brand were obviously deliberate imitation in subjective state and were intended to cling to the goodwill and operating resources that the plaintiff company had gained, thereby achieving the purpose of making profits for themselves. It belonged to other situations that could be identified as deliberate in intellectual property infringement, and due to the huge profits and the serious circumstances, punitive damages should be applied according to law. Based on the calculation that half of the infringement profits were used as punitive damages for trademark infringement by Mr. and Mrs. Wang, the total amount of compensation should be more than 5.57 million yuan. The plaintiff's company filed a lawsuit and claimed only 4.464 million yuan, which did not exceed the total amount of compensation, so the plaintiff's claim was supported by the court according to law, and combined with the facts of the case, the discretionary reasonable expenses of the plaintiff's company were 60,000 yuan, and the court made the above judgment in accordance with the law.