Recently, Beijing Intellectual Property Court made a first-instance judgment on the case of unfair competition dispute involving the red bottoms shoes, and determined that the trade name of "red bottoms" of Christi Louboutin Simple Co., Ltd. and the red decoration design used in the outer soles of women's high heels constituted "influential trade name" and "influential packaging decoration". 

Christy Louboutin Simple Co., Ltd. (Christy Company for short) was established on February 5, 1991, and its main business includes footwear products, Moroccan leather products, gloves, tourism products, gifts, etc. Since 1992, Christy has designed, produced and sold ladies' high heels with red soles. Christy Company authorizes Lambuting Shanghai Trading Co., Ltd. (referred to as Lambuting Company for short) to engage in the sales of various Christy Company products, including "red bottoms". In a recent lawsuit to the Beijing Intellectual Property Court, Christy Company claimed that a variety of women's shoes with the same design as Christy's red sole decoration and using the "red bottoms" as their trade names were sold at the counter of New World Department Store. It found after investigation that the infringing goods were produced by Guangdong Wanlima Industrial Co., Ltd. (referred to as Wanlima Company), with Beijing Yixi New World Department Store Co., Ltd. (referred to as New World Company) as marketing operator of the department store as well as the Tmall Wanlima Footwear Official Flagship Store and Saint Jack Flagship Store. 

Defendant Wanlima Company was established on April 19, 2002, and its business scope includes production, processing, manufacturing, research and development, design and sales, and online sales of leather products, footwear, bags, etc. 

After trial, Beijing Intellectual Property Court held that, first, the plaintiffs Christy Company and Lanbuting Company requested to protect the “red bottoms” as the influential commodity name according to Article 6 of the Anti-Unfair Competition Law, and also claimed influential decoration for the red decoration used for the outer soles of women's high heels. To judge whether the parties have a direct interest in this case, the key lies in judging whether the interests contained in the trade name of the "red bottoms" involved and the decoration of the red soles have the basis of substantive law protection for the parties. In this case, the documented evidence submitted by the two plaintiffs can prove that the decoration and commodity names involved have established a stable corresponding relationship with Christy Company among consumers, and it can be determined that the rights and interests of the decoration and commodity names involved in the case belong to Christy Company. However, the documented evidence can only prove that Lanbuting Company is the agent of Christy Company, but cannot prove that the decoration and commodity name involved have established a stable corresponding relationship with Lanbuting Company, so there lacks the basis to prove that Lanbuting Company may have a direct interest in this case. 

Christy Company also submitted relevant evidence showing that it has actually sold footwear products in Chinese mainland since 2011, and the sales amount exceeded 900 million yuan; since 2003, it has publicized and reported "red bottoms" through many well-known media in China. The above evidence is sufficient enough to prove that the “red bottoms” products and red sole decoration have high market popularity, and have established stable contact among the relevant public, and their remarkable characteristics may distinguish the sources of products. Therefore, Christy's “red bottoms” trade name and decoration with red sole color design belong to the "influential" trade name and decoration logo as prescribed in Article 6.1 of the Anti-Unfair Competition Law. Wanlima Company's unauthorized use of the same or similar logo of “red bottoms” and red sole decoration is influential enough to cause mistaken recognition that it has certain connection with Christy Company, and its behavior violates the provisions of Article 6.1 of the Anti-Unfair Competition Law and constitutes unfair competition. 

Since the decision of whether Lanbuting Company has an interest in this case is inseparable from the determination of the trade name of the “red bottoms” involved and the ownership of the rights and interests of the red sole decoration, and considering the principle of economizing and facilitating litigation, Beijing Intellectual Property Court ruled against Lanbuting Company’s appeal, ordered Wanlima Company to stop infringement, and compensate Christi Company for economic losses of RMB 5 million and reasonable expenses of RMB 445,000.