NYC “? Tea” Stores Say Molly Tea’s China Parent Doesn’t Own the US Trademark
The New York shops that were forced to drop the Molly Tea name in June are now fighting back in court. In a filing reported by Bloomberg Law on October 6, 2026, the former Molly Tea stores argue that the chain’s Shenzhen parent company doesn’t own the US common-law trademark to “Molly Tea” and had no right to make them stop using it.
The shops also accuse the parent of breaking their licensing deal by imposing what they call “materially different terms,” and say the dispute forced them to suspend operations.
It’s the biggest turn yet in a fight that has kept the stores trading under a question mark for four months.
Why This Matters
If you’ve been buying jasmine milk tea at the old Molly Tea shops in Flushing or Manhattan’s Chinatown, this case decides what those stores can call themselves, and possibly whether they stay open. It also tests a question that matters for every Chinese tea chain expanding through US partners: who really owns a brand name in America, the company that created it abroad, or the business that first used it here?
What the “? Tea” Stores Are Claiming
Based on Bloomberg Law’s report, the New York operators make three main arguments:
- No US common-law rights: The Shenzhen parent doesn’t hold US common-law trademark rights to “Molly Tea,” so it can’t block the stores from using the name.
- Breach of the licensing agreement: The parent changed the deal by imposing materially different terms.
- Real damage: The stores say the dispute forced them to suspend operations.
The shops named in the reporting include the original Flushing, Queens store, Molly Tea’s first US location, and the Manhattan Chinatown store. Bloomberg Law’s full article is behind a paywall, so the complete list of claims and the exact damages sought aren’t public yet.
The Trademark Record: A Cancellation Is Pending
There’s a second development that hasn’t drawn much attention. According to US trademark records, the Shenzhen company’s “Molly Tea” registration (serial no. 98360430, restaurant services) shows:
| Date | Event |
|---|---|
| January 17, 2024 | Application filed by Shenzhen Molly Tea Food and Beverage Management Co. |
| April 6, 2024 | Claimed date of first use of the mark in the US |
| October 21, 2025 | Trademark registered |
| August 4, 2026 | Cancellation proceeding instituted |
| September 15, 2026 | Notice of Suit added to the record |
A cancellation proceeding is a formal request to remove a registered trademark. The record doesn’t show publicly who filed it, so we won’t guess. But it means the parent’s US registration itself is now being challenged, at the same time it is being used to keep the New York stores off the Molly Tea name.
Why “common law” matters: In the US, trademark rights can come from actually using a name in business, not only from registering it. That’s the core of the stores’ argument. Molly Tea’s first US store opened in Flushing in April 2024, the same month the registration lists as the brand’s first US use. Which side’s use counts is one of the questions the court may now have to decide.
How We Got Here
- Late 2023: Four New York stores open through a partnership between the Shenzhen company and MHL NY LLC.
- May 2026: The Shenzhen parent sues MHL NY LLC and others in the US District Court for the Southern District of New York, alleging trademark infringement and breach of contract, and seeking more than $5 million in damages.
- June 8, 2026: Judge John P. Cronan grants the parent a preliminary injunction barring the stores from using Molly Tea branding. This is a temporary order, not a final ruling.
- June 10–11, 2026: The stores swap their logo for a question mark and start trading as “? Tea.” The parent announces it has cut ties with the New York locations.
- October 6, 2026: The stores’ new filing claims the parent doesn’t own the US trademark.
We explained the June rebrand in detail here: why NYC Molly Tea stores became “? Tea”.
The Parent Company’s Side
The Shenzhen company’s position hasn’t changed publicly: it says the New York operators breached their contracts and infringed its intellectual property, including allegations involving recipes and training materials. So far, the court has sided with the parent at the early stage by granting the injunction. Nothing has been decided on the full merits of either side’s claims.
Are the “? Tea” Stores Still Open?
That’s unclear right now. In late June, the stores were still open and busy under the “? Tea” name, with discounts and a slightly trimmed menu. The new filing says the dispute forced them to suspend operations, but the public reporting doesn’t say which stores or for how long.
Our advice: check the store’s social media or call ahead before making a special trip.
Does This Affect Other Molly Tea Stores in the US?
No. This case only involves the New York stores run by MHL NY LLC. Molly Tea locations elsewhere in the US are run by other partners and are still opening. This week, Molly Tea opens a new store at Westfield Southcenter near Seattle, and more are planned in Texas.
The trademark cancellation is worth watching, though. If it succeeds, it could affect the parent’s US registration more broadly. That would only happen through a formal decision, which hasn’t been made.
This is the second big trademark fight for Molly Tea this year. In China, a court ordered the brand to pay Louis Vuitton over its flower logo; we covered that in why Molly Tea was ordered to pay Louis Vuitton.
What Happens Next
- The court responds to the new claims. The Shenzhen parent will answer the stores’ filing.
- The injunction stays in place unless the court changes it, so the stores still can’t use the Molly Tea name for now.
- The trademark cancellation continues as a separate proceeding.
- A final ruling on who owns the name in the US could take months.
We’ll update this page as the case moves forward.
FAQs
Why did the NYC Molly Tea stores become “? Tea”?
A federal court granted Molly Tea’s Shenzhen parent a preliminary injunction on June 8, 2026, barring the New York stores from using Molly Tea branding.
What are the “? Tea” stores claiming now?
They say the Shenzhen parent doesn’t own US common-law trademark rights to “Molly Tea” and broke their licensing agreement.
Who owns the Molly Tea trademark in the US?
The Shenzhen company holds a US registration from October 2025, but a cancellation proceeding against it was started in August 2026. The stores dispute the parent’s ownership. Nothing is final yet.
Are the “? Tea” stores open?
It’s unclear. They were open in June, but the new filing says they had to suspend operations. Check before you go.
Are other Molly Tea stores affected?
No. The case involves only the New York stores run by MHL NY LLC.
This article is based on reporting from Bloomberg Law and Columbia News Service, the court’s June 8 order (SDNY, case 1:26-cv-04051) and US trademark records, checked October 12, 2026. This is news coverage, not legal advice.
