Adidas Case Study

Agency/Agencies

Quanzhou City Technical Supervision Bureau; Fujian Provincial Technical Supervision Bureau; Fujian Provincial Public Security Bureau, Social Order Team; State General Administration for Quality Supervision, inspection and Quarantine, Department of Supervision and Procuration, Ministry of Pubic Security, Social Order Bureau, Division 6

 Case

In October, 2000, Fujian Jinjiang HUIFU SHOES CO., LTD. was found to counterfeit adidas sports shoes. It was raided by Quanzhou TSB on November 23, 2000 with a seizure Of 23,063 pairs of finished counterfeit adidas sports shoes, 6,250 pairs of semi-finished uppers, packaging cartons marked with adidas and some moulds. The value of the products concerned was affirmed to be RMB2,573,304 by the court of the first instance and the second instance.

On November 23, 2000, Quanzhou TSB raided Fujian Jinjiang HUIFU SHOES CO., LTD. With a seizure of 23,063 pairs of finished counterfeit adidas sports shoes, 6,250 pairs of semi-finished uppers, packaging cartons marked with adidas and some moulds. In February 2001, Quanzhou TSB transferred the case to Jinjiang PSB for filing and further investigation. On February 18, the general manager, Zhu Xiaofang, was criminally detained and subsequently arrested on March 15.

On September 25, Jinjiang People’s Court ruled that both HUIFU SHOES CO., LTD. And Zhu Xiaofang had committed the crime of count6rfeiting regist8red trademarks. A penalty of RMB100,000 was imposed on the work unit. Zhu Xiaofang was sentenced to 3 years in prison and a fine of RMB50,000. The seized count6deit sports shoes

were confiscated. The defendant appealed to Quanzhou Intermediat6 People’s Court. On November 29, 2002, Quanzhou Intermediate People’s Court made the finial sentence that both HUIFU SHOES CO., LTD. And Zhu Xiaofang has committed the crime of counterfeiting registered trademarks. A penalty of RMB100,000 was imposed on the work unit, and Zhu Xiaofang was sentenced to thirty months in prison and a fine of RMB50,000. The seized counterfeit sports shoes were confiscated.

 Results

1) The defendant work unit, HUlFU SHOES CO., LTD. Committed the crime of counterfeiting registered trademarks and was fined RMB100,000.

2) The defendant, Zhu Xiaofang, committed the crime Of counterfeiting registered trademarks and was sentenced to thirty months in prison and a fine of RMB50,000.

3) The seized counterfeit sports shoes were confiscated.

 Why is this case unique?

The local TSB successfully transferred the case to the PSB. The strong supervision from State PSB and State TSB pushed forward the case and finally led to the conviction of the counterfeiter.