New Balance win record amount in Chinese trademark case after logo infringed

New Balance has successfully sued three local shoemakers who tried to infringe the trademarked 'N' logo on their shoes.

[File phoot: Agencies]

A Chinese court awarded the US sportswear firm more than 10 million yuan (£1.2m; $1.5m), which is thought to be the highest ever payout in China for a trademark case, just a year after New Balance lost a trademark case and were ordered to pay 5 million yuan in compensation to a local company.

Trademark abuse is a problem which Chinese courts have been trying to cut down on by strengthening its trademark laws since joining the World Trade Organization in 2001. This case could set a precedent for those who try to sell knock-off goods.

The problem is still widespread, though: "For every big brand that is infringed in China, there are many, many less famous brands that are victims of this situation" said Paolo Beconcini, senior global brand protection consultant at law firm Squire Patton Boggs.