QBPC Chooses Typical Cases of Protecting IP Rights Launched by Foreign Enterprises

Three foreign enterprises jointly lodge complaint

On March 27, 2003, after receiving joint complaint from Guangzhou Colgate Plamolive Co., Unilever (China) Co., and P&G (China) Co., members of QBPC, Public Bureau of Gaoyao, Guangdong province made a surprise attack on one underground factory manufacturing toothpaste, tracked down and seized great amount of fake toothpaste, packings and assembly lines, and detained 12 criminal suspects including the principal criminal, Zheng Zhuoguang.

On November 20, 2003, Gaoyao People’s Court held public trial for the above case, the principal criminals, Zheng Zhuoguang, Zheng Shuiliu were imposed 9-year imprisonment, criminal fine 500,000 Yuan respectively.

HP made secret inquires, seeing through counterfeiting packings

In 2003, after thorough and complete investigation on Chongming Printing Factory located in Shenzhen, Guangdong province, HP found the factory printing quantities of trademark representations of famous trademarks, such as HP, Nokia, and Motorola. HP Co. made complaint against the factory with bureau for industry and commerce in Huian District, Shenzhen, and the bureau sealed up large amount of counterfeiting packings for HP products, Nokia and Motorola mobile phones as well as other counterfeiting products. As request of HP Co, the authorities for industry and commerce transferred the case to public security departments to investigate into the criminal responsibility of the criminal suspects. The principal criminal, Hong Shaoquan, was imposed one year imprisonment and criminal fine RMB 10,000 Yuan.

Johnson & Johnson products were counterfeited

In April, 2003, Ding lei, Xu Bin, Yang Kuixin, and other persons bought great amount of fake medicines, such as Domperidone tablets, from Anhui province and sold them to hospitals in Jiyuan in Henan province, gaining illegal profits about 1,6000,000 Yuan. The counterfeiting Johnson & Johnson medicines was about 50000 in value, resulting in great damage to the image of Johnson & Johnson Co.. After seizing up the counterfeiting medicine, the Bureau for Drug Supervision and Administration of Jiyuan immediately transferred the case to public security authorities to placing it on file for investigation and prosecution. After all-round investigation and inquires, it’ found that the counterfeiting facts were clear, the police of Jiyuan, with assistance of police from Bozhou, arrested the criminal suspects.

A murder case drew forth trademark cases

On December 18, 2002, when investigating a murder case taking place in Huangpu District, Guangzhou, the police accidentally found San Li Electronics were unlawfully producing large quantities of outer casings of many famous mobile phones, such as Nokia, Motorola, Samsung, Siemens, etc. After immediate contact with the intellectual property departments of Nokia Co, and Motorola Co., it was testified that the two mobile phone manufacturers had not authorized San Li Electronics to use their trademarks. On December 23, the police detained Wang Minghui and Wang Hua who were in charge of San Li Electronics, and confiscated counterfeitings over 280 million Yuan outer casings of mobile phones, trademark representations and packings over 29 million pieces on the spot. On September 18, the People’s Court of Huangpu District held public trial, Wang Minghui was imposed 5-year imprisonment, criminal fine 100, 000 Yuan, and Wang Hua was imposed two years and six months imprisonment, criminal fine 2000 Yuan.

Ningbo customs confiscated counterfeiting Unilever products

On November 7, 2003, Ningbo customs successfully confiscated a batch of counterfeiting Unilever products. With assistance of Beilun customs, the customs officials found shampoo and soaps marked “Dove” mark infringing the related intellectual property rights of Unilever. After sealing up the counterfeiting products, Ningbo customs and lawyers from Unilever checked and sorted out the products to preserve evidence, and went through formalities for suspending the products, thus formally initiating intellectual property customs protection procedure.

On January 5, after getting over interference and obstruction, Ningbo customs issued decision of administrative penalty to the infringer, confiscated and destroy the infringing products, and imposed a fine of 18850 Yuan on the infringer.

Judgment of Counterfeiting Nike shoes case were entered

On January 15, 2002, Nanjing customs tracked down 12,960 pairs of sporting shoes (worth 350000 Yuan) with “hook” sign similar to that of Nike. Nike Co. maintained that the hook sign used by the exporter constituted similarity to the sign of Nike, thus applying for intellectual property protection to Nanjing customs, against which the exporter raised opposition. On January 29, Nike filed civil action in Nanjing Intermediate People’s Court. Finally, Yangzhou Intermediate People’s Court entered a judgment ordering the defendant to stop acts infringing upon trademark right of Nike Co, and to compensate the losses suffered by Nike RMB 200,000 Yuan.

Toshiba trademark infringement and domain name dispute

In April of 2002, Jiasheng Electric Appliances Co., Ltd began to produce and sell household electric appliances with trademark of Hong Kong Toshiba. The corporation also registered domain name www.hkdongzhi.com, conducting online sale. On June 1, 2003, Toshiba filed complaint against Jiasheng Electric Appliances Co., Ltd, for malicious possession of its trademark and domain name before WIPO. On August 14, WIPO made arbitration award ordering Jiasheng Electric Appliances Co., Ltd to assign the above domain name to Toshiba Co. On October 14, 2003, Bureau for Industry and Commerce of Ningbo issued decision of administrative penalty, confiscating the infringing products, concurrently imposing fine 40,000 Yuan on Jiasheng Electric Appliances Co., Ltd.

Editorial note:

The above seven typical cases relating to intellectual property protection reflect the new tendency of cracking down acts of producing and selling counterfeiting products recently. From The cases, we can see that with China’s entry into the WTO, China has enhanced protection of intellectual property rights, and the related enforcement authorities have attached great importance and taken varieties of effective measures to protect all the right owners of intellectual property (including foreign enterprises). Some cases demonstrate the advantage of cracking down counterfeiting acts jointly; some show law enforcement authorities take actions on their own initiative without reports or complaints.

At present, there appear varieties of new features in the trial of intellectual property cases, for example, cases involving criminal proceedings and bloc producing counterfeiting increase and the fields of infringement are enlarged. Besides, many cases relate to daily necessities of common consumers, arousing wide concerns among consumers and news media.

We feel confident that，with enhancement of law enforcement level of related authorities, the intellectual property right of foreign enterprises will be better protected.