In recent years, in accordance with the unified deployment of the Ministry of Public Security, public security authorities nationwide have continuously and thoroughly carried out special operations such as “Kunlun,” strengthened criminal protection of intellectual property rights, and lawfully cracked down on various crimes of infringement and counterfeiting, thereby playing an important supporting role in empowering innovation-driven development, optimizing the business environment, promoting cultural prosperity, and safeguarding people’s livelihood and safety. On 25 April, the Ministry of Public Security released a batch of typical cases of public security authorities strengthening criminal protection of intellectual property rights and serving and safeguarding high-quality development. The case of production and sale of pirated toys by Yang Mouchan and others handled by Lusheng Law Firm on behalf of a certain internationally renowned toy and entertainment group was honorably selected as a "Model Case of Criminal IP Protection by the Ministry of Public Security" .
Brief Case Overview
The public security authorities in Shandong cracked the case of production and sale of pirated toys by Yang Mouchan and others. In June 2024, based on clues reported by the right holder enterprise, the public security authorities in Heze, Shandong, solved the case, arrested 29 criminal suspects, destroyed 7 criminal dens, and seized on site more than 100,000 pieces of pirated toys, involving an amount of more than RMB 76 million. Investigation revealed that since November 2019, the criminal suspect Yang Mouchan and others had registered multiple companies and massively produced pirated toys, copying the design of product outer packaging, printing assembly instructions, and, after packaging, selling them externally through e-commerce online stores and physical shops in small commodity markets.
Lusheng Law Firm assisted the client and the public security authorities in handling this case.
Typical Significance
This case is another major case of cracking down on the manufacture and sale of pirated toys in which Lusheng assisted the right holder and the Shandong public security authorities. The significance of this case lies not only in the extraordinarily high amount involved, but also in the full-chain crackdown and the cutting off of the cross-border supply chain of infringing products. In this case, our firm assisted the public security authorities in uncovering the entire network for designing and manufacturing pirated toys. In addition to the persons in charge and key managers of the factories manufacturing pirated toys, the designers of the pirated toys, as well as downstream distributors responsible for wholesale, retail, and export, were also arrested, resulting in a comprehensive and thorough crackdown on the entire infringement ecosystem. The infringing products in this case were exported by traders to multiple countries in Southeast Asia, Europe, and other regions. This crackdown cut off the export routes of the infringing products and also helps to establish internationally China’s image as a country that protects intellectual property rights.
Case-handling Team
WANG Shan, Head of the Shanghai Office, Co-head of Dispute Resolution Practice, Lusheng Law Firm
Wang Shan is a distinguished expert in the field of intellectual property protection. Her practice covers trademarks, copyrights, patents, trade secrets, trade names, and unfair competition, and she has accumulated over 20 years of practical experience. She serves numerous world-renowned companies, mostly from the media and entertainment, sports, fashion and luxury goods, automotive, technology, chemical, and restaurant chain industries. She has successfully represented many dispute cases with extensive social impact and high-value compensation cases in the tens of millions of RMB. Many of these cases have repeatedly been selected as “Top Ten Intellectual Property Cases of Chinese Courts” released by the Supreme People’s Court and as annual typical cases by courts at various levels, and have been included in lists such as “QBPC: Top Ten Cases of Intellectual Property Protection of the Year” and “China Business Law Journal: Deals of the Year.”Ms. Wang has been widely recognized by many international legal ranking institutions and authoritative media, including Managing IP, Benchmark Litigation, World Trademark Review, IAM (Intellectual Asset Management), among others, and has been listed in rankings such as “Managing IP: Top 250 Women in IP Worldwide.”
Email: cwang@lushenglawyers.co
FENG Guimei, Senior Lawyer, Lusheng Law Firm
Ms. Feng Guimei joined Lusheng in 2008 and has worked in the field of intellectual property for more than ten years, with extensive practice experience. She is adept at designing and managing intellectual property enforcement projects. As a senior intellectual property lawyer, Ms. Feng provides overall intellectual property protection strategies, brand protection consulting, and litigation legal services for numerous world-leading enterprises in industries such as toys, sports brands, and luxury goods. Ms. Feng has also represented and prevailed in various types of litigation cases involving trademark infringement, unfair competition, and copyright infringement.
Email: hfeng@lushenglawyers.com
