In order to fully demonstrate the achievements and effectiveness of the Jiangsu courts in intellectual property adjudication in serving and safeguarding high-quality economic and social development, the Jiangsu courts have selected, from a vast number of judicial cases, the “Top 50 Most Influential IP Trial Cases in Support of High-Quality Economic and Social Development by Jiangsu Courts (1995–2025)” The case of New Balance v. Shenzhen Xinpingheng Sports Goods Co., Ltd. (New Boom) et al. concerning trademark infringement and unfair competition, in which Lusheng Law Firm acted as counsel, was honorably selected.
Brief Facts of the Case
New Balance Trading (China) Co., Ltd. (“New Balance China”) obtained, through lawful authorization, the non-exclusive right to use the “NEW BALANCE” and “ 
” trademarks within the territory of China, and adopted a trade dress design featuring the letter “N” on both sides of its footwear products. By establishing an overseas company, Zheng Mouzhong authorized Shenzhen Xinpingheng Company to manufacture on a large scale sports shoes bearing the “
” sign and using the letter “N” as decoration on both sides, and to promote and sell such products online and offline. Xin Niubailun Shoe Factory promoted and sold the accused infringing sports shoes through its Alibaba online store, publicly claiming to be the manufacturer of the accused infringing sports shoes. Bostak Company was responsible for the research and development and production of the accused infringing sports shoes. The official website of Shenzhen Xinpingheng Company published a large number of articles that falsely publicized honors of New Balance sports shoes by misappropriating them. On this basis, New Balance China filed a lawsuit with the Suzhou Intermediate People’s Court. During the litigation, upon application, the court lawfully issued an interlocutory injunction, but several defendants refused to comply with the effective ruling and, when the court served the legal documents, threw the legal documents to the ground next to a police car in public. The court decided to impose fines ranging from RMB 100,000 to RMB 1,000,000 on several defendants. Upon trial, the court held that Shenzhen Xinpingheng Company, Xin Niubailun Shoe Factory, Bostak Company and others constituted trademark infringement and unfair competition, and therefore fully upheld New Balance China’s claim for damages in the amount of RMB 10 million.
Typical Significance
This case is the first in Jiangsu Province in which an injunction was issued involving the unique trade dress of a well-known commodity, and also the first case in which an interlocutory injunction covered the entire chain from prohibiting production and sales to prohibiting false advertising. Subsequently, the court imposed judicial fines on the respondents for their refusal to comply with the interlocutory injunction. In the substantive part, the court made a useful exploration in the refined calculation of the actual losses of the right holder, and applied punitive damages in accordance with the law, fully supporting the plaintiff’s claim of RMB 10 million. This case was also selected as one of the “Top 100 Excellent Judgments of Courts Nationwide (First Session),” one of the “Top 10 Intellectual Property Cases of Chinese Courts in 2018,” and one of the “Top 10 Typical Cases of Judicial Protection of Intellectual Property Rights by Jiangsu Courts in 2018.”
