Though seized by the administration for industry and commerce for selling counterfeit Levi's garments, a Beijing garment company continued selling the infringing products.  Levi Strauss & Co. (Levi) of the United States, the trademark owner of Levi's, then sued the company for the trademark infringement in the Beijing First Intermediate Court.  The Court's recent first-instance decision required the defendant's payment of a damage of 500,000 RMB for the trademark infringement.

In June,2005, responding to an informant's lead, administrations for industry and commerce from Chaoyang and Haidian seized over 100 counterfeit Levi's at the defendant's storefront and imposed sanctions accordingly.  

 In March,2006, Levi purchased counterfeit Levi's again from the same shop.  Levi claimed that the act of the Beijing garment company had infringed its exclusive trademark right and caused significant injury to its economic interests and requested the court to order the defendant to cease selling infringing products immediately and pay a damage of 500,000 RMB.  The defendant argued that it had acquired the products from legitimate channel and should not be liable for damage.