The Beijing Wu-Mart Yutingqiao store has been sued for selling fake Adidas shoes and was sentenced by Beijing Second Intermediate People's Court to pay Adidas compensation of CNY20,000.
Adidas had registered — and has the exclusive rights for — the "three-leaf grass" and the "three-stripes" trademarks in China. These are distinguishing trademarks for Adidas products. However, in September 2007, the company found that some shoes sold in the Beijing Wu-Mart Yutingqiao store had similar or identical trademarks.
Adidas said that as a chain supermarket, Wu-Mart must have known that these shoes were maliciously imitating the Adidas trademarks — however the supermarket still sold these products and this was a trademark infringement. Therefore, it asked the defendant to stop the infringement, destroy the infringing goods, eliminate the adverse effects, and pay Adidas compensation of CNY500,000 for economic loss.
Based on the above facts, Beijing Second Intermediate People's Court decided that the acts of the defendant had constituted a violation of Adidas' exclusive right to the registered trademarks and ordered that the defendant should pay CNY20,000 to Adidas as compensation for economic loss.