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The infringing party was ordered to bear substantial damages and to immediately cease all infringing acts.
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On 31 December 2025, the Supreme People’s Court upheld the first-instance judgment rendered by the Qingdao Intermediate People’s Court, thereby establishing a strong judicial precedent for the handling of similar infringement cases in China.
Following its earlier success before the Supreme People’s Court, Lusheng, in cooperation with its strategic partner in China, Rouse, once again secured final-instance support from the Supreme Court for ENZAFruit New Zealand International Limited (“ENZAFruit”), a subsidiary of T&G Global Limited (“T&G”). In this case, the Chinese defendants, without the permission of the right holder, illegally produced and propagated propagation materials of the Scilate variety/brand name ENVY, and sold the relevant infringing harvested materials. This case constitutes another landmark and critical victory in the enforcement actions initiated by T&G in Shandong Province, China’s major apple growing region and production area, against infringements of the Scilate variety. The judgment also upheld the first-instance judgment rendered by the Qingdao Intermediate People’s Court of Shandong Province in April 2025.
The defendants produced and propagated propagation materials of the Scilate variety and sold the relevant infringing harvested materials through multiple online and offline channels. In addition, during the course of sales, although the infringers used different names to designate their products, they nevertheless deliberately used a brand similar to T&G’s well-known trademark ENVY for promotional purposes, in an attempt to free-ride on its goodwill and obtain unlawful gains.
In view of the scale of the infringing acts and the degree of subjective bad faith, the court ordered the defendants to pay substantial damages to ENZAFruit, and required them to cease producing and propagating propagation materials of the Scilate variety, to cease selling the harvested materials obtained therefrom, and to destroy the illegally propagated materials.
The Supreme People’s Court rejected the defendants’ “lawful source” defense and held that the determination of infringement should adhere to an overall assessment. Where the alleged infringer has both produced and propagated propagation materials of the authorized variety and sold the harvested materials obtained from such propagation materials, the alleged infringing acts shall be considered and evaluated as a whole. In addition, the Court emphasized that the living cells in the fruit and leaves of apples both contain DNA, which can be used for testing; therefore, using harvested materials of the alleged infringing variety as samples for testing complies with the Technical Specification for Identification of Apple Varieties – SSR Molecular Marker Method. Using harvested materials of the alleged infringing variety as the object of testing can greatly facilitate the right holder’s collection of evidence, which undoubtedly helps to further protect the legitimate rights and interests of the variety right holder.
Client Testimonials
Gareth Edgecombe, Chief Executive Officer of T&G Global:
“This judgment of the Supreme People’s Court fully reflects China’s firm determination, in the context of thoroughly implementing the Seed Law, to protect new plant variety rights and to curb illegal production and infringing activities. This is the second time that the Supreme Court has rendered a decision in favor of T&G, establishing a strong judicial precedent for the handling of similar infringement cases in China. This judgment, together with the recently revised Regulations of the People’s Republic of China on the Protection of New Varieties of Plants, will benefit plant breeders, growers, consumers and the entire horticultural industry, and has further strengthened T&G’s confidence in continuing to invest in the Chinese market, as we are assured that our intellectual property rights will receive full and effective protection in China.”
Case-handling Insights from the Lusheng Team
Sunny Su, China Head of Digital & Commercial in this case:
“This judgment of the Supreme People’s Court is of landmark significance for both domestic and international agricultural brands. It fully demonstrates the practical effectiveness of the revised Seed Law and sends a clear signal to the market that China’s legislative and judicial systems are genuinely safeguarding the legitimate rights and interests of right holders. The decision also serves as a strong warning to the industry that any acts of illegal propagation, harvesting or sale of infringing products will be strictly pursued for legal liability. In addition, the recent successful compulsory enforcement in Gansu, where a large number of illegally infringing Scilate variety apple trees were cut down and destroyed, has further implemented the effective judgment in practice, genuinely safeguarding the interests of all right holders and upholding social fairness and justice.”
Liping Xu, Principal:
“At present, infringement methods in the field of new plant varieties are becoming increasingly covert, and harvested materials have become an important clue for right holders to trace the source of infringement. Since the revision of the Seed Law of the People’s Republic of China, the judiciary and law enforcement authorities have rendered numerous representative penalty decisions and judgments concerning infringements involving illegal harvested materials, expressly extending infringement liability from illegal propagation materials to the harvested materials obtained from such illegal propagation.”
