The judgment is based on the Trademark Law of the People’s Republic of China.

Liushen toilet water sued the small supermarket. The court’s judgment was based on Article 64, paragraph 2, of the Trademark Law of the People’s Republic of China (amended in 2019). This article stipulates: If you sell goods that are not known to infringe the exclusive rights of a registered trademark, and you can prove that you obtained the goods legally and explain the supplier, you will not be liable for compensation.

In the case of Liushen Toilet Water suing a small supermarket, although the small supermarket claimed that the allegedly infringing "Liushen Pill Toilet Water" it sold had a legal source and should not be liable for compensation according to law, the Alipay submitted to the court The Alibaba order printout was not enough to prove that the allegedly infringing product involved in the case originated from a product factory in Zhuji City, so the court did not support its claim.