Chinese Infringer Beaten, But Will It Stop?

LAS VEGAS (CN) — Nike won default judgment when Fujian Bestwinn of China did not respond to a lawsuit accusing it of violating 18 shoe-design patents — but whether Nike can enforce the judgment outside the United States is another question.

U.S. District Judge Andrew P. Gordon on Friday granted Nike's motion for final judgment and permanently enjoined Bestwinn from making or importing shoes that infringe on Nike's patents.

"Because Bestwinn never appeared in this action and has been in default for more than five months, it is disregarding this court, this lawsuit, and Nike's intellectual property rights," Nike said in its motion for final judgment.

Gordon also ordered Bestwinn to pay Nike's costs and treble damages for its patent infringements.

Fujian Bestwinn sells its knockoffs across Asia and on the Chinese Internet powerhouse Alibaba, which offered dozens of types of Fujian shoes for sale Wednesday morning.

Nike sued on Feb. 17, and the court clerk entered default judgment against Bestwinn for nonparticipation on March 31.

U.S. Marshals served Nike's complaint on Bestwinn on Feb. 18 during a trade show in Las Vegas, and Bestwinn did not file a response by its March 10 deadline.

Nike said Bestwinn's overseas activities continue infringing on its design patents, but it has no way to stop it outside of the United States without a permanent injunction.

Without the injunction, Nike said, Bestwinn would continue "flaunting United States intellectual property laws and flooding world markets with knock-off designs," while "eroding and devaluing" Nike's intellectual property.

Nike said there is no way to know the damages Bestwinn has inflicted.

Nike's attorney Michael McCue with Lewis Roca Rothgerber Christie was not immediately available by telephone and had not responded to an email request for comment Tuesday evening.

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