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Nike sues man selling fake shoes
By Cao Li (China Daily)
Updated: 2006-02-15 06:33
SHANGHAI: A lawsuit by Nike against a former professional soccer player who
sold counterfeit trainers on the Internet got under way yesterday at Shanghai No
1 Intermediate People's Court.
Zhuang Zhihao purchased hundreds of fake Nike and Adidas footwear from two
men from Fujian Province and sold them at his online shop, Shiji Xiewang (Shoe
King of the Century), at eBay.com.cn from September 2004 to January 2005.
During the period he sold 1,092 pairs of fake trainers at an average price of
90 yuan (US$11). He was arrested in early 2005 together with the two Fujian
natives and two other illegal traders. They have been previously sentenced in
criminal courts.
After Zhuang was given one year's probation, Nike International Ltd began
legal proceedings. They are demanding compensation of 200,000 yuan (US$24,700)
from him, which includes costs on lawyers, investigations and other losses.
Attorney Zhou Shixing, representing Nike, said that the actual deficit was
much beyond the figure considering the loss of potential sales of hundreds of
customers who bought the fake footwear. Zhou admitted that Nike is losing a lot
to the large counterfeit product traders, many of whom are conducting business
in shops or markets, as well as on the Internet.
Lin Guoxiu, one of the Fujian natives who sold the trainers to Zhuang,
purchased more than 30,000 fake Adidas and Nike products from his hometown, and
a large number of them were sold online. Lin and Zhuang were ordered to pay
300,000 yuan (US$37,000) and 15,000 yuan (US$1,850) respectively to Adidas for
selling fake trainers by Shanghai Huangpu District People's Court last month.
Four former customers of Zhuang gave affidavits during yesterday's latest
hearing. Zhang Qing, 37, purchased three pairs of Nike trainers from Zhuang and
said he introduced other customers too.
Liu Wei, of eBay China, admitted that it was difficult to screen fake
products as 1 million products were sold online every day.
She added that adverts would be removed, however, once a complaint could be
verified.
A search by China Daily on eBay.com.cn found 4,752 pairs of Nike trainers and
3,878 pairs of Adidas footwear, most of which are less than 200 yuan (US$25).
But the prices for Nike sports shoes in a shop in Pacific Mall along downtown
Huaihai Road range from 500-1,000 yuan (US$62-123).
Liu said lawsuits had been launched against them several times, but that
courts had never supported the claims.
"The website simply provides a platform for trading and never gets involved
in the actual purchasing," she said.
A document from the country's Supreme Court requires online retail operators
to kick out advertizers who are proved to be selling fake products. But there
has not been any rule stipulating an examination of the products.
(China Daily 02/15/2006 page2)
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