Chang Tsi & Partners, acting for globally renowned footwear company Edelman Shoe, Inc. (hereinafter “Edelman”), has once again delivered a decisive blow, launching a criminal enforcement action in Dongguan, Guangdong against a large-scale, organized criminal gang counterfeiting the “Sam Edelman” brand shoes. Recently, the final Judgment in this case was handed down, with both the principal offender Xie and the accessory offender Chen being held criminally liable.

About Edelman Shoe, Inc.

Edelman Shoe, Inc., a subsidiary of Caleres, Inc., is an internationally renowned manufacturer of footwear, handbags, and boots. Its core brand, Sam Edelman, is sold in 32 countries worldwide and has rapidly gained favor among Chinese consumers since entering the Chinese market. As a benchmark enterprise in the industry, Edelman has always placed intellectual property protection at the core of its corporate strategy, committed to safeguarding brand reputation and consumer rights.

Case Summary

During monitoring of footwear markets across various locations in Guangdong, we identified a suspicious target in Houjie Town, Dongguan City. Based on investigations into the target’s movement patterns and shipping routines, we pinpointed the location of the target warehouse and reported it to the local Public Security Bureau (PSB). During the on-site criminal raid operation, we worked closely with the PSB to formulate raid strategies and assisted the PSB in apprehending the infringer Chen on the spot, seizing nearly 2,000 pairs of counterfeit “Sam Edelman” brand shoes, along with several hundred pairs of other branded shoes, from the warehouse.

Following interrogation, the PSB learned that the suspect Chen had been hired by Xie to manage and display counterfeit shoes at the warehouse, primarily responsible for receiving and shipping goods. After trial in the criminal court, the accessory offender Chen was sentenced to 7 months of imprisonment and 1 year of suspension of sentence, and fined RMB 50,000 for the crime of selling commodities bearing counterfeit registered trademarks.

Given that Chen was an accessory offender and that the infringers in this case had not yet been fully apprehended, we actively cooperated with the police by reviewing case files and gathering intelligence, assisting the PSB in the subsequent arrest of the principal offender. Subsequently, the principal offender Xie was also apprehended by the PSB. After trial in the criminal court, the principal offender Xie was sentenced to one year and six months’ imprisonment and fined RMB 120,000 for the crime of selling commodities bearing counterfeit registered trademarks.

Legal Actions

Chang Tsi & Partners developed a comprehensive criminal strategy for this case, including:

1) Coordinating with PSB to conduct a raid on the criminal gang’s warehouse, seizing nearly 2,000 pairs of counterfeit “Sam Edelman” shoes, and apprehending suspect Chen on the spot;
2) Obtaining criminal case files to secure sufficient evidence to support the subsequent conviction of the accessory offender and the arrest of the principal offender;
3) Providing intelligence to assist the PSB in further apprehending the principal offender Xie;
4) Assisting the PSB, procuratorate, and court in advancing the criminal proceedings and securing favorable Judgments.

Court Judgments

The principal offender Xie was sentenced to one year and six months’ imprisonment and fined RMB 120,000 for the crime of selling commodities bearing counterfeit registered trademarks.

The accessory offender Chen was sentenced to 7 months of imprisonment and 1 year of suspension of sentence, and fined RMB 50,000 for the crime of selling commodities bearing counterfeit registered trademarks.

Significance of the Case

1. Full-chain crackdown on the criminal gang, completely eliminating the organized counterfeit sales network

The target of this enforcement action was not an isolated individual seller of counterfeit goods, but rather a criminal gang with clear division of labor, distinct hierarchies, and long-term stable operations. The principal and accessory offenders collaborated with each other, forming a complete criminal chain from warehousing to sales. Chang Tsi & Partners legal team consolidated resources from various fronts, formulated a well-developed enforcement strategy, and assisted the PSB in apprehending all members of the gang, thoroughly eliminating the market supply capacity of this counterfeit sales network. This approach to combating the criminal gang across the full chain carries greater strategic significance and deterrent effect than merely investigating individual counterfeit sellers. It truly achieved the law enforcement outcome of “destroying one gang, purifying an entire market”, and further demonstrated Chang Tsi & Partners’ professional advantages in resource integration and precision strike capabilities.

2. Actual imprisonment for the principal offender, creating a powerful legal deterrent against potential criminal gangs

The outcome - actual imprisonment for the principal offender and criminal penalties for the accessory - effectively deterred wrongdoers. This ruling carries a strong warning message for potential criminal gangs - whether an organizer or an executor, anyone participating in large-scale counterfeit sales as part of a joint crime will face criminal prosecution. The Judgments clearly convey the judicial authorities’ firm stance on severely punishing organized, networked intellectual property crimes.

3. Sustained enforcement efforts demonstrating the commitment to brand protection

The successful resolution of the above two cases fully demonstrates Edelman’s firm position and efficient execution capability in brand protection. Edelman has always spared no effort in combating counterfeit products and cleansing the market. The above-mentioned robust criminal Judgments not only serve as an effective deterrent against infringing parties but also demonstrate to the public the legal consequences of infringement, further purifying the market environment.

In this enforcement action, Chang Tsi & Partners, as Edelman’s legal service partner, provided full-chain legal services throughout the process. This not only provided strong support for achieving a successful outcome in the case but also established a replicable model for the efficient handling of similar organized crime cases in the future.

Going forward, Edelman will continue to strengthen its monitoring and enforcement efforts against counterfeit products, collaborating with professional legal teams to continuously advance intellectual property protection and safeguard consumers' legitimate rights and brand reputation. Any attempt to challenge Edelman’s brand integrity will be met with resolute legal action.