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Case-by-case | A gentleman should have a good way to make money, and he should be held criminally responsible for making counterfeits and infringing rights

author:Justice Zhaoqing

The protection of intellectual property rights is the protection of innovation, and the protection of innovation is to serve the development of new quality productivity. In the past year, the Gaoyao District Procuratorate has cracked down on the crime of infringing intellectual property rights, and has handled cases involving intellectual property crimes such as the case of counterfeiting registered trademarks and the case of illegally manufacturing counterfeit registered trademark logos.

1. Case of counterfeiting registered trademarks by Wei XX, Feng XX and others

Case-by-case | A gentleman should have a good way to make money, and he should be held criminally responsible for making counterfeits and infringing rights

From March 2023 to August 2023, Wei Moumou and Feng Moumou hired a group of workers to make counterfeit medical devices and other products in the processing yards leased by them in Liantang Town, Huodao Town, Jinli Town and other places in Gaoyao District, Zhaoqing City, without the permission of the registered trademark owners of "Fujian Li Shizhen" and "Huaxida" (medical devices and health care product brands). In August 2023, the public security machine seized a batch of goods printed with trademarks such as "Fujian Li Shizhen" and "Huaxida" at the scene. According to statistics, the total value of the above-mentioned commodities seized is about 6108342 yuan. In September 2023, the procuratorate approved the arrest of Wei Moumou and Feng Moumou for the crime of counterfeiting registered trademarks.

2. Case of Ye Moumou's illegal manufacture of counterfeit registered trademark logos

Case-by-case | A gentleman should have a good way to make money, and he should be held criminally responsible for making counterfeits and infringing rights

In July 2023, without the permission of the registered trademark owners of cigarettes such as "Nanjing", "Golden Leaf" and "Hongqiqu", Ye Moumou hired a group of workers to produce and print cigarette boxes in a paper product factory in Jindu Town, Gaoyao District, Zhaoqing City. In September 2023, the public security organs seized a batch of semi-finished cigarette boxes and semi-finished products of cigarette boxes printed with trademarks such as Nanjing (hard red), Golden Leaf (hard Emgrand), and Hongqiqu (new version of Galaxy). According to statistics, the total number of registered trademark logos seized was 1418335. In December 2023, the procuratorate approved the arrest of Ye Moumou for the crime of illegally manufacturing counterfeit registered trademark logos.

With the development of economy and society, various phenomena of using well-known registered trademarks to make and sell counterfeits have emerged in the market one after another, which not only infringes on the exclusive right to use registered trademarks of trademark owners and affects the brand image, but also infringes on the legitimate rights and interests of consumers based on brand trust and disrupts the market order. Since the implementation of the 11th Amendment to the Criminal Law, the punishment for intellectual property criminal offenses such as the crime of selling goods with counterfeit registered trademarks has been increased, reflecting the state's decision to crack down on intellectual property infringement crimes and protect innovation and creativity. Producers and operators should make money in a proper manner, operate in good faith, respect the intellectual property achievements of others, and never violate the bottom line of the law for temporary gains. Profit-driven counterfeiting and selling counterfeits requires both jail and fines.

【Links to legal provisions】

1. Criminal Law of the People's Republic of China

Article 213 [Crime of Counterfeiting Registered Trademarks] Whoever, without the permission of the owner of the registered trademark, uses a trademark identical to the registered trademark on the same kind of goods or services, and the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than three years and/or a fine;

Article 215 [Crime of Illegally Manufacturing and Selling Illegally Manufactured Registered Trademark Logos]

Where the circumstances are serious, the person who forges or manufactures the logo of another person's registered trademark without authorization, or sells the logo of a registered trademark that is forged or manufactured without authorization, shall be sentenced to fixed-term imprisonment of not more than three years and/or a fine, and where the circumstances are especially serious, shall be sentenced to fixed-term imprisonment of not less than three years but not more than ten years and shall also be fined.

II. Interpretation of the Supreme People's Court and the Supreme People's Procuratorate on Several Issues Concerning the Specific Application of Law in Handling Criminal Cases of Infringement of Intellectual Property Rights

Article 1 In any of the following circumstances, a person who uses a trademark identical to his registered trademark on the same kind of goods without the permission of the owner of the registered trademark shall be "serious circumstances" as provided for in Article 213 of the Criminal Law, and shall be sentenced to fixed-term imprisonment of not more than three years or short-term detention and/or a fine for the crime of counterfeiting a registered trademark:

(1) The amount of illegal business operations is 50,000 yuan or more, or the amount of unlawful gains is 30,000 yuan or more;

(2) Counterfeiting two or more registered trademarks, illegally operating with an amount of 30,000 yuan or more, or illegally obtaining more than 20,000 yuan;

(3) Other situations where the circumstances are serious.

In any of the following circumstances, it is a "particularly serious circumstance" as provided for in Article 213 of the Criminal Law, and shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years and a concurrent fine for the crime of counterfeiting registered trademarks:

(1) The amount of illegal business operations is 250,000 yuan or more, or the amount of unlawful gains is 150,000 yuan or more;

(2) Counterfeiting two or more registered trademarks, illegally operating for more than 150,000 yuan or illegally gaining more than 100,000 yuan;

(3) Other situations where the circumstances are especially serious.

Article 3 In any of the following circumstances, a person who forges or manufactures another person's registered trademark logo without authorization, or sells a counterfeit or unauthorized registered trademark logo, shall be deemed to have "serious circumstances" as provided for in Article 215 of the Criminal Law, and shall be sentenced to up to three years imprisonment, short-term detention or controlled release and/or a fine for the crime of illegally manufacturing or selling illegally manufactured registered trademark logos:

(1) Forging, manufacturing or selling counterfeit or unauthorized registered trademark logos in the number of 20,000 or more, or illegally operating in an amount of 50,000 yuan or more, or illegally gaining more than 30,000 yuan;

(2) Forging, manufacturing or selling two or more types of registered trademark logos in the amount of 10,000 or more, or illegally operating in an amount of 30,000 yuan or more, or illegally gaining 20,000 yuan or more;

(3) Other situations where the circumstances are serious.

In any of the following circumstances, it is a "particularly serious circumstance" as provided for in Article 215 of the Criminal Law, and shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years and a concurrent fine for the crime of illegally manufacturing or selling illegally manufactured registered trademark logos:

(1) Forging, manufacturing or selling counterfeit or unauthorized registered trademark logos in the number of 100,000 or more, or illegally operating in an amount of 250,000 yuan or more, or illegally gaining more than 150,000 yuan;

(2) Counterfeiting, unauthorized manufacturing, or selling counterfeit or unauthorized manufacture of two or more types of registered trademark logos, with the number of 50,000 or more, or the amount of illegal business operations exceeding 150,000 yuan, or the amount of unlawful gains exceeding 100,000 yuan;

(3) Other situations where the circumstances are especially serious.

Article 12: "Amount of illegal business operations" as used in this interpretation refers to the value of the infringing products manufactured, stored, transported, or sold by the perpetrator in the course of carrying out acts of infringing intellectual property rights. The value of the infringing products that have been sold is calculated according to the actual sales price. The value of the infringing products manufactured, stored, transported and not sold shall be calculated on the basis of the marked price or the actual average sales price of the infringing products that have been identified. If the infringing product is not marked with a price or the actual sales price cannot be ascertained, it shall be calculated according to the mid-market price of the infringing product.

Where multiple acts of infringement of intellectual property rights are carried out without administrative disposition or criminal punishment, the amount of illegal business operations, the amount of unlawful gains, or the amount of sales is to be calculated cumulatively.

The "piece" provided for in Article 3 of this Interpretation refers to a sign that the indicator has a complete trademark reprint.

Source: Gao Yao Procuratorate