A Chinese court has awarded a US company, New Balance, damages of RMB25m in a case brought by the US sportswear brand against two local footwear companies – Fujian based New Barlun and its distributor, Shanghai Shiyi Trade.

Lawyers say that the latest case would have a big impact on Chinese trademark protection because of the big damages.

This was always going to happen. China has been aware of the need to eliminate bad practices that damage foreign companies. And this is part of a pattern. China now allows foreign companies to be 100% foreign-owned and now China will take significant steps to protect copyright and logos of international companies wanting to deepen their involvement in China. The companies will be reassured that Chinese courts will decide cases on the basis of the facts and not on the basis of nationality. The rule of law will apply – not the rule of politics.

Politicians will try to decouple from PRC. Business will deepen its involvement in PRC