The Dongcheng District Market Supervision and Administration Bureau of Beijing imposed an administrative penalty on an individual in accordance with the second paragraph of Article 60 of the China Trademark Law, confiscated the goods and imposed RMB30,000 (USD 4,242) in fine.
Nike owns the "NIKE" mark with reg. no. 4516216 for "clothing, shoes, and soccer shoes" in class 26. Shanghai Shizhuang Information Technology Co., Ltd. owns the "De Wu in Chinese" mark with reg. no. 31033869 in class 35 for "marketing, providing an online market for buyers and sellers of goods and services" in class 35.
On November 12, 2021, the Market Supervision and Administration Bureau of Dongcheng District, Beijing received a report that there was a stall in a market selling sneakers suspected of infringing on the "NIKE" mark. After investigation, in October 2021, the party concerned paid RMB1,600 (USD226) to buy 100 pairs of sneakers with the "NIKE" trademark from a salesperson and sold 5 pairs when he was investigated on November 12, 2021. Nike confirmed these sneakers were infringing products. Inside the shoebox, there were words "identified as genuine by an appraiser" and a QR code with "De Wu in Chinese." After confirmation with the owner of the "De Wu in Chinese" app Shanghai Shizhuang Information Technology Co., Ltd., the above appraisal conclusion was not Issued by the company or authorized to be issued by others.
This case is a typical case of administrative law enforcement in which the use of infringing trademarks on goods to deceive consumers' trust and confuse the source of goods.
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