Shanghai’s No. 3 Intermediate Court Sentences DuPont Counterfeiter to 2+ Years in Prison

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On January 6, 2022 the Shanghai No. 3 Intermediate People’s Court (上海第三中院) sentenced defendant Zhang XX for counterfeiting DuPont’s registered trademarks for pesticides and related products and was sentenced to two years and two months in prison and a fine of RMB 220,000. Further illegal gains and property was confiscated.

Zhang, in conjunction with others prosecuted separately, counterfeited trademarks for “SYNGENTA,” “DuPont,” “BASF,”  and others. According to an investigation, from January 2019 to June 2021, Zhang took charge of the purchase of fake pesticide orders in the total amount of more than 7 million RMB for export. In July 2021, the public security authority seized some infringing materials, counterfeit pesticides and other goods at the business premises of the relevant enterprises. Upon confirmation of the trademark owner, all the packages and pesticides bearing the aforesaid registered trademarks were determined to be counterfeit.

The Shanghai No. 3 Intermediate People’s Court held that the defendant Zhang XX, together with others, used the same trademark as the registered trademark on the same commodity without the permission of the registered trademark owner, and counterfeited two or more registered trademarks and sold them. The circumstances were particularly serious and his behavior has constituted the crime of counterfeiting registered trademarks. In the joint crime, the defendant Zhang XX played a secondary role and was an accomplice, so his punishment should be lenient.

The Court stated,

“SYNGENTA” “DuPont” “BASF” and other famous international agricultural and pharmaceutical brands enjoy a relatively high market share in the world. Without the permission of the trademark holder, the production and sale of counterfeit pesticides will not only infringe upon the legitimate rights and interests of the trademark holder, but may also have other serious consequences because the products cannot achieve the expected pesticide effects. In addition, in accordance with the Regulation on Pesticide Administration, the Measures for the Administration of Pesticide Licenses and other relevant provisions, China implements a pesticide registration system, and pesticide production enterprises shall apply for pesticide registration according to the relevant provisions, and pesticide production enterprises shall produce products in strict accordance with product quality standards to ensure that pesticide products are consistent with registered pesticides; If the pesticide is processed or separately packed upon commission, the principal shall obtain the corresponding pesticide registration certificate, and the agent shall obtain a pesticide production license. Pesticide producers shall meet the corresponding registration and licensing requirements in their business activities, and indicate the truthful information about the trustor and the trustee on the labels, so as to conduct business in accordance with laws and regulations and in good faith.

 

Author: Aaron Wininger

Aaron Wininger is a Senior Attorney and Director of China Intellectual Property at Schwegman Lundberg & Woessner.

Author: Aaron Wininger

Aaron Wininger is a Senior Attorney and Director of China Intellectual Property at Schwegman Lundberg & Woessner.