Shanghai action plan targets counterfeit Nike children’s clothing

On August 23, 2022, the Shanghai Administration for Market Surveillance released a set of typical cases of its three-year action plan for protecting the quality and safety of products for children and students in Shanghai (2021- 2023) ((2021—2023)). The action plan has so far brought in 8.1014 million RMB ($1.181 million) in fines and the first release case is for 7.2 million RMB in counterfeit Champion and Nike children’s clothing.

In July 2021, the Municipal Market Surveillance Bureau Law Enforcement Team received a complaint report that Shanghai Qiaoyun Trading Co., Ltd., located at No. 476 of Xiulong Village, Qingpu District , Shanghai, was suspected of selling counterfeit well-known brands. children’s clothing products. During the on-site inspection, it was found that the company has 2 heat transfer machines to transfer brands to clothes, and a large number of heat transfers with the brands “NIKE” and ” CHAMPION” that had not yet been transferred to the clothes. By checking the parties’ sales records on the online platform, law enforcement agencies found that the value of clothing products suspected of infringing the exclusive right to use the trademark amounted to more than 3 million RMB.

After the final evaluation of the trademark owners, including Nike Sports (China) Co., Ltd., the Nike trademark registrant, and HBI Brand Apparel Enterprise Co., Ltd., the Champion trademark registrant, the ‘accused used the same trademarks on the garments they manufactured without the authorization of the aforementioned trademark owners, which violates the provisions of Article 57(1) of the “Trademark Law of the People’s Republic of China”.

A total of 4,488 items of clothing suspected of infringing the exclusive right to use a trademark were seized from the scene, with a total value of RMB 284,784. The value of the clothes made by the party infringing the exclusive right to use a registered trademark reached more than 150,000 RMB, which violated Article 213 of the Criminal Law of the People’s Republic of China on the Crime of Counterfeiting a registered trademark. According to current regulations, the case will be transferred to the public security department for investigation and processing. According to the public security department’s follow-up investigation, since June 2020, the defendants have sold clothing products infringing the exclusive right to use the trademark worth more than RMB 7.2 million.

The remaining typical customs relate to safe and inferior products. The full text of the announcement is available here (Chinese only).

© 2022 Schwegman, Lundberg & Woessner, PA All rights reserved.National Law Review, Volume XII, Number 237

Darryl A. Chapin