On the occasion of “World Intellectual Property Day 4·26”, the case jointly handled by Lusheng Law Firm and its strategic partner Rouse International as agents for Zespri International Limited of New Zealand, concerning the resale of illegal trademark labels and counterfeit fruit, was selected as one of several typical cases, including: the typical cases of the “Safeguarding Intellectual Property Rights” campaign published by the Shanghai Administration for Market Regulation, and the "Top 10 Cases of IP Criminal Protection by ZHIQITONG (an IP service platform managed by Shanghai IP Administration)"
Brief Case Overview
Henan Zhi某 Supply Chain Management Co., Ltd. (hereinafter referred to as “Zhi某 Company”) was established in March 2022 and is engaged in various printing businesses. From April 2023, during the joint operation of Zhi某 Company by Mu某某, Lü某某 and Cui某某, Mu某某 accepted the commission of defendants Hai某某 and Chang某 to illegally print counterfeit “Zespri” and other internationally renowned fruit trademark labels, thereby turning ordinary fruit into so‑called “high‑end imported products”. The total number of counterfeit labels involved in the case exceeded 9 million. The infringing products were widely distributed 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 high sales records. Rouse International assisted the client in promptly reporting the case to the public security authorities. Through meticulous evidence collection, conclusive evidence was obtained that these sellers were shipping large quantities of illegal labels 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某 Company and Mu某某 and Hai某某, but also carried out enforcement cooperation jointly with the Shanghai 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 of 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某 Company of the crime of illegally manufacturing and selling illegally manufactured registered trademark labels. Principal offender Hai某某 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 an All‑round Way
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. The case involved the entire chain of criminal activities, including illegal printing, 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 handling the case are rare in recent years.
2. Clarifying the Legal Application Standards for “Integrated Production and Sales” Infringement
In view of the “integrated production and sales” conduct in this case, where the defendants both illegally manufactured trademark labels and sold the same counterfeit labels, the team, drawing on judicial interpretations and practical experience, put forward the professional opinion that “heavier penalties should be imposed based on the quantity of infringing labels”. The court ultimately adopted this recommendation and clarified that such unlawful conduct should be convicted under the crime of illegally manufacturing and selling 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‑type trademark infringement.
3. Establishing a Model for Enterprises’ Full‑process Rights Protection
In this case, the team fully played a bridging role by assisting law enforcement authorities in securing electronic chains of evidence and providing legal support on key issues such as the characterization of the infringing acts and sentencing. The successful conclusion of the case not only reflects the determination of Chinese law 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 punishment – criminal accountability”, which has important reference value for multinational enterprises’ rights protection in China.
