On the occasion of “World Intellectual Property Day 4.26”, the case jointly handled by Lusheng Law Firm and its strategic partner Rouse International on behalf of New Zealand company Zespri concerning the reselling of illegal trademark labels and counterfeit fruit has been selected as one of several typical cases, including: the “Safeguarding Intellectual Property Rights” campaign typical cases published by the Shanghai Municipal Administration for Market Regulation, and the “Zhiqitong” Top Ten Cases of Criminal Protection of Intellectual Property Rights.
Brief Case Overview
Henan Zhi Mou Supply Chain Management Co., Ltd. (hereinafter referred to as “Zhi Mou Company”) was established in March 2022 and engages in various printing businesses. From April 2023, during the joint operation of Zhi Mou Company by Mu Moumou, Lü Moumou, Cui Moumou and others, Mu Moumou accepted the commission of defendants Hai Moumou and Chang Mou to illegally print counterfeit “Zespri” and other internationally renowned fruit trademark labels, thereby turning ordinary fruit into “high-end imported products”. A total of more than 9 million counterfeit labels were involved in the case. The infringing products were widely circulated through e-commerce platforms, seriously damaging the brand value of the right holder and the rights and interests of consumers.
In November 2023, Rouse International, together with its client, launched a monitoring project targeting counterfeit goods and labels on e-commerce platforms. Through big data analysis and assessment, it identified online stores selling Zespri trademark labels without authorization and successfully pinpointed online sellers with abnormally prominent sales records. Rouse International assisted the client in immediately reporting the case to the public security authorities. Through meticulous evidence collection, conclusive evidence was obtained that these sellers were shipping illegal labels in bulk to multiple fruit merchants in Shanghai, thereby cracking the criminal gang engaged in reselling counterfeit fruit labels. In the course of investigating this case, the public security authorities not only successfully dismantled the criminal group headed by Zhi Mou Company and Mu Moumou and Hai Moumou, but also carried out enforcement cooperation jointly with the Shanghai Municipal Administration for Market Regulation. Through joint enforcement actions, the two authorities precisely targeted downstream merchants in the regions involved who used counterfeit Zespri trademark labels to disguise ordinary fruit as branded kiwifruit for high-priced sales. The market regulation authorities, in accordance with the law, conducted centralized enforcement inspections of the infringing business premises involved and issued administrative penalty decisions. Lusheng Law Firm, as Rouse International’s strategic partner, represented the client in following up on the criminal proceedings in the case and substantively represented the trademark right holder in the criminal procedure. Ultimately, in November 2024, the People’s Court of Yangpu District, Shanghai, rendered its judgment, convicting eight defendants and Zhi Mou Company of the crime of illegal manufacture and sale of illegally manufactured registered trademark labels. Principal offender Hai Moumou was sentenced to three years and three months’ fixed-term imprisonment, and the total amount of fines and confiscations in the case exceeded RMB 150,000.
Typical Significance
1. Assisting Cross-Regional Enforcement Cooperation to Combat the Counterfeiting Supply Chain in a Comprehensive Manner
The team worked closely with the Shanghai Public Security Bureau and market regulation authorities. After identifying online infringement clues through big data monitoring, it promoted cross-regional joint enforcement actions, successfully uncovering and dismantling a complete counterfeiting industrial chain spanning multiple regions including Henan and Shanghai. This case involved full-chain criminal activities, including illegal printing and online sale of counterfeit trademark labels and offline distribution of counterfeit fruit. More than 4 million infringing labels were seized, and a total of over 9 million labels were sold. Both the scale of infringement and the difficulty of case handling are rare in recent years.
2. Clarifying the Legal Standards Applicable to “Integrated Production-and-Sales” Infringement
In respect of the “integrated production-and-sales” conduct in this case, where the defendants not only illegally manufactured trademark labels but also sold the same counterfeit labels, the team, drawing on judicial interpretations and practical experience, put forward the professional opinion of “imposing heavier penalties based on the quantity of infringing labels”. The court ultimately adopted this recommendation, clarifying that such unlawful conduct should be convicted under the crime of illegal manufacture and sale of illegally manufactured registered trademark labels, and that penalties should be appropriately increased within the statutory sentencing range. This adjudicative standard provides an important reference for similar cases and strengthens the crackdown on industrial-chain trademark infringement.
3. Establishing a Model for Full-Process Rights Protection for Enterprises
In this case, the team fully played a bridging role, assisting the enforcement authorities in securing electronic evidence chains and providing legal support on key issues such as characterization of the infringing acts and sentencing. The successful conclusion of the case not only reflects the determination of Chinese enforcement authorities to protect intellectual property rights, but also provides right holders with a full-process rights protection model of “monitoring and detection – administrative investigation and disposition – criminal accountability”, which is of significant reference value for multinational enterprises seeking to protect their rights in China.
