Infringers Face Justice: Court Awards CNY 1 Million Compensation in Trademark and Unfair Competition Case

On behalf of Edelman Shoe, Inc., a global leader in footwear, Chang Tsi & Partners has achieved another major victory in intellectual property protection. In a landmark case, the Second People's Court of Dongguan City ruled against Defendant 1, Mr. Wang and Defendant 2, Dongguan Aijing Trading Co., Ltd., for trademark infringement and unfair competition (pending under second instance as the defendants have filed an appeal). The first instance court ordered the defendants to cease all infringing activities, issue a public apology, and pay CNY 1 million (approximately USD 140,860) in damages and reasonable expenses.

About Edelman Shoe, Inc.

Edelman Shoe, Inc., a subsidiary of Caleres, Inc., is renowned for its elegant and stylish footwear, handbags, and boots. The brand, Sam Edelman, has a presence in 32 countries worldwide and has expanded rapidly in China since entering the market in 2015. As a market leader, Edelman is committed to safeguarding its intellectual property, ensuring brand integrity, and protecting its customers' trust.

Case Summary: Multi-Forms of Infringement

The defendants engaged in a series of severe and persistent infringing activities, including:

1. Trademark/Copyright Squatting: Filing multiple trademarks and copyrights that were identical or confusingly similar to Edelman Shoe, Inc.’s registered marks and copyrighted works.
2. Bad Faith Opposition/ Invalidation: Using plagiarized copyrighted works to initiate trademark opposition and invalidation proceedings against Edelman Shoe, Inc.
3. Counterfeiting: Using infringing marks on products, packaging and copying Edelman’s trade dress for BAY style sandals, and promoting and selling these infringing products across platforms like WeChat, TikTok, and Taobao.
4. False Advertising: Fabricating a brand history by copying Edelman Shoe, Inc.’s story and promoting it as their own.

These actions severely disrupted Edelman’s business operations, violated principles of honesty and fair competition, and caused significant harm to its brand value.

Legal Actions Taken

Chang Tsi & Partners implemented a comprehensive strategy to combat the defendants' infringements, including:

1) Filing opposition and invalidation proceedings against the Defendants’ marks;

2) Conducting website notarizations to preserve the Defendants' infringing promotions on diverse platforms, such as WeChat, TikTok, Taobao, etc.；

3) Conducting online purchase notarizations to fix the fact of selling infringing goods of the Defendants;

4) Conducting the onsite visit to locate the physical store of the Defendants, and collaborating with local authorities to conduct raids on physical stores selling counterfeit products;

5) Initiating a civil lawsuit to consolidate all claims and resolve the matter comprehensively.

Court's Ruling

The court of first instance delivered a decisive verdict in favor of Edelman Shoe, Inc., ordering the defendants to:

1) stop the infringement on the marks including SAM EDELMAN.

2) stop unfair competition against the Plaintiff's trade dress of BAY style sandals, stop false propaganda on WeChat and Taobao shop, stop applying similar marks and copyright registrations;

3) publish apology statements in Dongguan Daily and Dongguan Times to diminish the negative effects resulted from its infringements.

4) compensate the Plaintiff for economic losses and reasonable expenses totaling CNY 1,000,000.

Significance of the Case

This landmark victory carries profound implications for Edelman Shoe, Inc., the footwear industry at large, and intellectual property enforcement in China. Its importance can be summarized in three key areas:

1. A Model for Combating Multi-Channel Infringement:

This case highlights the increasingly severe challenges rights holders face due to the growing variety of infringement forms. Infringers have engaged in activities ranging from applying for similar trademarks, copying copyrighted works, imitating trade dress, to manufacturing and selling infringing products, while simultaneously utilizing online platforms and physical stores to carry out their infringements. Chang Tsi & Partners' multi-faceted strategy—integrating trademark prosecution, administrative raids, notarized evidence collection, and civil litigation—sets a benchmark for addressing complex, multi-dimensional infringements effectively.

2. Deterrence Against Malicious IP Squatting:

The court's explicit prohibition of trademark squatting and preemptive copyright registrations marks a significant legal precedent in combating bad-faith practices. By invoking China's Anti-Unfair Competition Law, the ruling sends a strong message: malicious IP squatting will not be tolerated. This decision bolsters protections for brands like Edelman and reinforces the integrity of China's intellectual property framework.

3. Recognition of Brand Value and Loss Mitigation:

The court's decision to award CNY 1 million in damages highlights the gravity of the defendants' misconduct, including the widespread and cross-platform nature of their infringement, its prolonged duration, and the substantial harm caused to Edelman's market operations and brand reputation. This compensation not only offsets Edelman's economic losses but also empowers the company to reinvest in future IP protection efforts in China, ensuring sustained brand integrity.

For Edelman, this victory reaffirms its dedication to defending its brand in China—a critical market for its global strategy. For Chang Tsi & Partners, this case exemplifies the firm's unmatched expertise in handling complex IP disputes and delivering tailored, high-impact legal solutions for multinational clients.

Looking ahead, Chang Tsi & Partners remains committed to supporting Edelman and other global brands in protecting their intellectual property, promoting fair competition, and preserving market integrity in China's dynamic business environment.