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Ten Typical Cases of Intellectual Property Protection in Shanghai in 2010

 

Ten Typical Cases of Intellectual Property Protection in Shanghai in 2010


I. “May 29th” Series Cases of IPR Infringement to Shanghai World Expo

【Introduction】
In late May 2010, the security department of the Shanghai World Expo found that a visitor exchanged for a real ticket with a fake one and wanted to enter the Expo Park. This case attracted great attention from the leadership at all levels. Mr. Yu Zhengsheng, Member of the Political Bureau of CPC Central Committee and Secretary of Shanghai Municipal CPC Committee made the instruction to solve the case promptly.
The Economic Crime Investigation Corps of Shanghai Municipal Public Security Bureau, together with other police forces and the security department of the EXPO Park, rapidly verified the identity of the visitor holding the fake ticket by checking the surveillance video at the Park gate. Local police found that the fake ticket was released together with the infringing commodity “Centennial Expo Album of Stamps and Coins”. Police officers traced the bank accounts, marketing calls & other clues and finally caught Tu Xiongwei the lawless salesman in Beijing on June 2nd. According to the confess of Tu Xiongwei, the Economic Crime Investigation Corps of Shanghai Municipal Public Security Bureau with Beijing police launched the law enforcement action in Madian Market of Stamps & Coins in Beijing together on June 4th and caught three suspects including Song Qingmin, the printer of the fake “Centennial Expo Album of Stamps and Coins”.  Song Qingmin confessed that he only counterfeited the Album but did not produce the fake ticket. Meanwhile, he provided the clue that Li Wenbin also counterfeited a large number of the albums and sold by wholesale. The police investigation team then arrested Li Wenbin in Langfang, Hebei Province on June 13th. Soon after the police captured Zhang Haiyu and others in Pingyang and Cangnan in Zhejiang Province on June 25th, who printed the fake World Expo albums, fake tickets and other commodities infringing IPR of the World Expo. By then, through the clue tracing and rooting-out investigation in Beijing, Hebei, Zhejiang and other places, the police investigation team successfully solved the series cases, captured 15 suspects in total (of which 8 were transferred to relevant authorities in Zhejiang, Beijing and other places), destroyed 21 dens making and selling fake goods and ferreted out more than 58,000 pieces of fake tickets, fake medals and other counterfeit franchised products of the World Expo together with more than ten sets of relevant machines. The police action effectively restrained the criminal activities infringing the World Expo IPR at the source.

【Result】
Tu Xiongwei, who committed the crime of selling commodities with counterfeit registered trademarks, was sentenced to 4 years and 6 months in jail by Pudong New Area People’s Court on December 10th, 2010 and was also fined for RMB 200,000. The other six suspects including Li Wenbin were still in the court proceedings.

【Comments】
By tracing the source of the fake tickets and in conjunction with the local police in Beijing, Zhejiang and other places, Shanghai Police successfully solved the series cases Infringing Shanghai World Expo IPR within one month, and carried out the overall rectification of the main bases for the manufacturing & selling of counterfeit World Expo commodities, which not only guaranteed the effectiveness of fight against the infringement but also made contribution to the success and wonderfulness of Shanghai World Expo.

 II. The Case of Copyright Infringement to “Maple Story” by Plug-in Program

【Introduction】
In September, 2010, Pudong Branch of Shanghai Public Security Bureau received a case reported by Shanghai Sndju Network Technology Co., Ltd. under Shanda Group that someone posted and sold the plug-in program of the online game “Maple Story” on the Internet with “Liangyu Maple Story” and other nicknames with illegal profits more than one million RMB yuan. Pudong Police reported to the Ministry of Public Security for its supervision. The police started from the QQ numbers of the salesmen and seized the registration information, IP address, Alipay transaction records and other key clues of the sales websites, with careful investigations in Shenzhen, Dongguan and Maoming in Guangdong Province as well as Nantong in Jiangsu Province. After nearly 2 months, the police found out the crime process and division of labor for the criminals. The police officers grasped the true identity of the suspects and their tracks of activities, with the actual location of the plug-in server. In October 2010, the police captured 5 suspects including Zhang Le in one fell swoop in Hubei, Guangdong, Jiangsu and other places, ferreted out 3 sets of computers and 2 sets of servers. Thus the criminal gang was destroyed, in which Zhang Le and others designed, programmed and produced the plug-in program of “Maple Story”, posted and sold it on the Internet for illegal profits more than RMB 4 million. This success reduced the economic losses of the online game enterprises in Shanghai and maintained the normal operation of the online game industry.
In addition, Pudong Police adhered to the principle of “Taking facts as the basis and laws as the yardstick”, cooperated with the judicial organs to analyze and identify the investigation key points and evidence specification of infringement to the copyright on the net. The police focused on the communication and collaboration with relevant technical departments and the network program technical experts, took the on-site inspection and other measures to collect the fixed electronic evidence and commissioned a third party, Shanghai Oriental Computer Judicial Qualification Agency, to carry out the judicial expertise and converted the fixed electronic evidence into the tangible evidence, ensuring the reliable and sufficient evidence to complete the case.

【Result】
Currently, the five suspects including Zhang Le were arrested and transferred for approval of prosecution. Now the case is under the hearing process in the court.

【Comments】
In recent years, the cases concerning the infringement to copyright of online game operators have repeatedly occurred with the quick growth of the online game industry,. However, it is hard to strike the source of the infringements due to the strong imperceptibility of the cyber crime. The police handled this case not only on the fight against the lawless salesmen, but also on striking the criminal source members who produced the plug-in program. It was a successful case on fighting against infringement to copyright on the net, with the whole criminal gang completely uprooted and the IP environment on the net effectively purified.

 III. The Case of Zou Min Intentionally Providing Warehouse for Trademark Infringement Activities

【Introduction】
During the daily inspection to Zou Min’ s pearl accessory shop located in Hancheng Dress and Gift Market, No. 580 West Nanjing Road, the law enforcement officers from Jing’an Branch of Shanghai Administration for Industry & Commerce found that there were many hustlers and foreigners frequently visited the store but what they purchased were not pearl accessories. Based on past experience, the shop was suspected of selling counterfeit goods with secret compartments inside.
On May 14th, 2010, the law enforcement officers of Jing’an AIC Branch inspected the store. Through careful inspection, they found hidden layer with electromagnetic lock in the wing wall of its warehouse, and tracked down 113 counterfeit watches including “CARTIER”, “GUCCI”, “ROLEX”, “LV”, “CK”, etc. The litigant claimed these products were stored and sold by Niu Li who rented the warehouse (Niu Li was treated in another case).
The litigant Zou Min came to Shanghai from Jiangxi Province. In July, 2006, Zou Min rented two stores as No. 27 and No. 28 on the 2nd floor of No. 580 West Nanjing Road. The litigant decorated the store, reorganized them as a main shop and a minor warehouse, and started the pearl accessory business. On August 31st, 2009, the litigant and Niu Li from Jiangxi province signed a lease contract. According to the contract, the litigant rent the warehouse to Niu Li with monthly rent of RMB 10,000, and with the lease term lasting from September 1st, 2009 to June 30th, 2010. Under the approval of the litigant, Niu Li redecorated the rented warehouse and set hidden layers to restore counterfeit goods. According to further investigation, the officers found that Zou Min is fully aware of the fact that Niu Li rented the warehouse for the purpose of restore & sales of counterfeit goods. The litigant had gained a total rent of RMB 80,000 before the case happened.

【Result】
The above-mentioned behavior of the litigant violated the Item II, Article 50 of the “Regulation for the Implementation of the Trademark Law of the People"s Republic of China”, constituting the act of intentionally providing warehousing facilities for activities infringing other’s registered trademark. Pursuant to the Article 52 of the Regulation, Jing’an Branch of Shanghai Administration for Industry & Commerce made the administrative penalty that Zou Min should stop the above-mentioned violation activity immediately and be imposed a fine of RMB 80,000.

【Comments】
Despite that the case is not of high value and large fine, it also has typical meaning. In accordance with the Item II, Article 50 of the “Regulation for the Implementation of the Trademark Law of the People"s Republic of China”, it constitutes the act of intentionally providing facilities such as storage, transportation, mailing, concealing, etc. for the purpose of infringing other’s registered trademark. Generally speaking, due to the difficulty in obtaining the evidence that the litigant is deliberate to provide conditions for infringement act, it is hard to investigate and prosecute. Jing’an AIC Branch intensified the daily inspection and strictly cracked down the act of selling counterfeit goods. After the thorough and careful investigation, the Branch successfully prosecuted the illegal act of providing convenience for the infringers. This action effectively warned and educated the business renters, cut off the source of counterfeits sales and further prevented the trademark infringement act.

IV. The Case of Swiss Victorinox AG Suing Shanghai Robusworks Tools Co., Ltd. for Patent Infringement

【Introduction】
On April 22nd 2010, the Swiss Victorinox AG appealed 5 administrative protection cases to Shanghai Intellectual Property Administration(SIPA) with regards to infringement upon 3 invention patents by 4 products of Shanghai Robusworks Tools Co., Ltd. These products are named as “multifunction knife with blue handle”, “multifunction tool with blue handle”, “all-metal multifunction tool” and “multifunction knife with green handle”. SIPA accepted the cases with a collective panel and an oral hearing.
After the hearing, it was proved that Shanghai Robusworks Tools Co., Ltd. demonstrated these products in the 105th China Import & Export Fair 2009. The accused acknowledged its infringement activity. SIPA declared that technical features of these products were within the protection scope of accuser’s patent in this case. The accused demonstrated these products for sales commitment and should be blamed for infringement according to the law.

【Result】
Two parties in this case did not achieve a reconciliation agreement on the amount of compensation after the mediation of SIPA. Therefore, SIPA made final resolutions respectively on the 5 cases that the accused shall immediately stop infringement on the patent of the accuser. Both parties did not conduct administrative lawsuit within the statutory period.

【Comments】
(1) Typical Case of Foreign Enterprise Suing Domestic Enterprise
In this case, the accuser has a strong sense of IPR protecting as a famous manufacturer of Swiss Army Knife. The accuser appointed some Chinese lawyer as its representative with full authority to deal with cases of IPR infringement in China. On the other hand, domestic enterprises still lack experience and respond hastily to infringement disputes, even with some improvements on IPR awareness in recent years. Domestic enterprises, industrial association and the government shall pay more attention to this issue.
(2) Heavy Responsibility for IPR Protection in Exhibitions
The modified Chinese patent law adds restrictions to the sales commitment of suspected products infringing design patents in exhibitions. The exhibitions, especially some international exhibitions, have a high frequency of patent infringement disputes. State departments are strengthening administrative law protection for IPR in the exhibitions. The domestic enterprises shall improve their sense of IPR and prevent IPR infringement in the international exhibitions.
(3) Determining the Amount of Compensation on the Behavior of Sales Commitment
In this case, two parties did not achieve the reconciliation agreement on the amount of compensation after the coordination of SIPA because the accused could not accept the reconciliation scheme proposed by the accuser. However, determining the amount of compensation on sales commitment is still a legal issue deserving attention. Despite the “principle of indemnity” applied in patent infringement compensation in China, the patentee does have actual or potential loss under some circumstances. Therefore, it will be determined separately according to different cases whether or not the sales commitment of patented products shall be blamed with compensation.                                                                                                           

V. The Case of Manual Sewing Machines Infringing Graphic Trademark of “Butterfly” and Portable Pack Sealing Machines Infringing Trademark of “YUKI”

【Introduction】
On March 29th 2010, Warren Import & Export Co., Ltd. in Yuyao of Zhejiang Province declared the export of sewing machines and other goods to Kenya at Shanghai Customs. After the integrated risk analysis of the Customs on enterprise, destination, name of commodity and other elements, it was determined that the goods were of a high risk of infringement. After checking by opening the container, there were found 500 sets of household-type manual sewing machines marked with “Butterfly” (graphics) and 100 sets of portable pack sealing machines marked with “YUKI”, with a total value of more than RMB100,000.
Shanghai Customs found in the review of IPR status of the goods that the logo on the exported sewing machine was similar to the registered trademark of “Butterfly” (graphics) and the logo “YUKI” on the portable pack sealing machine was similar to the trademark of “JUKI” owned by Japan Heavy Machinery Co., Ltd. The trademark of “Butterfly” (graphics) is owned by SGSB (Group) Co., Ltd Shanghai. And there was no file permitting the suspected company to export products with the trademark of “Butterfly” (graphics) in the records of the Customs. In addition, after communicating with Heavy Machinery Co., Ltd., the Shanghai Customs further confirmed that the trademark of “YUKI” has finished with registration in China. The approved scope of commodities also includes the commodity exported in this case. Finally it was clear that the household-type manual sewing machines marked with “Butterfly” (graphics) and the mobile pack sealing machines marked with “YUKI” were infringing goods after the confirmation from IPR owners.

【Result】
Through the investigation, the Customs made the administrative punishment decisions of confiscating the infringing goods and imposing a fine to the responsible party.

【Comments】
(1) The Case is a typical one that Shanghai Customs enhances the IPR protection. SGSB (Group) Co., Ltd. is a time-honored enterprise registered in Shanghai to manufacture sewing machines. The trademark of “Butterfly” (graphics) owned by the company has wide reputation home and abroad. Over the years, the trademark of the company had been infringed by illegal enterprises. With the guidance and assistance from Shanghai Customs, SGSB (Group) Co. Ltd. has become the first domestic enterprise and the only one at present in Shanghai Customs District who may use the general guarantee for the Customs IPR protection approved by the General Administration of Customs of PRC. This status helps the company to further reduce the cost of IPR maintaining and improve its anti-counterfeiting capabilities.
(2) The Case reflects the excellent capacity of seizing infringing goods by the officials in Shanghai Customs. The mark of the goods involved in the case is not entirely consistent with the trademark recorded by the IPR owners in the Customs. Through years of trademark knowledge training with IPR owners, the awareness and skills for brand protection of the Customs officers have been enhanced continuously.
(3) The Case is also a typical one to show the close cooperation between the Customs and IPR owners and the constant improvement of anti-counterfeiting efforts. With the suggestion of Shanghai Customs, the IPR owner completed the record of “YUKI” in the General Administration of Customs of PRC on May 28th, 2010, which lays a solid foundation for the further anti-counterfeiting efforts.

VI. The Case of Some Precision Molding Company in Shanghai Duplicating and Using Software without Copyright Owner’s Permission

【Introduction】
In July 2010, according to the authorized IPR owner’s complaint materials of an American software company, Shanghai Municipal Cultural Law Enforcement Agency decided to accept the case of some precision molding company in Shanghai duplicating and utilizing the software without the copyright owner’s permission, and organized a special team to conduct the investigation immediately.
The special team talked with the accuser at first for the facts of infringement and technical features of the infringed software. It also started to investigate the business scope of the accused from the periphery, getting the information on the software used by the accused. Meanwhile, the special team assigned technicians to research evidence collecting to the software, got technical features and parameters of pirated software, and drew up an operation method on site inspection.
In July 2010, Shanghai Municipal Cultural Law Enforcement Agency along with public security department inspected the operation place of the accused precision molding company at Huajing Road, Xuhui District. They found out 9 computers using infringed software on site. It was proved that the company had duplicated and used 9 sets of software owned by an American software company from June 16th, 2008 to September 2nd, 2010. The accused company made profits from molding design and manufacturing with the software, and continued infringement behavior even after receiving the copyright owner’s notification of stopping infringement.
After investigating and collecting evidence, Shanghai Municipal Cultural Law Enforcement Agency confirmed that the accused company infringed the owner’s copyright, harmed public interests and violated the Copyright Law of P. R. China and the Regulations for the Protection of Computer Software.

【Result】
After the legal education from law enforcement department, the accused realized its mistakes and decided to rectify immediately to eliminate the harmful consequences of its illegal behavior by introducing the authorized software from the copyright owner. The accused signed a contract with the copyright owner of purchasing authorized software amounting to RMB 1.5 million to replace former software in its office. Meanwhile, the accused signed reconciliation memorandum with the copyright owner and got the IPR owner’s forgiveness. Considering that the accused corrected its mistakes actively to eliminate the harmful consequences, the Shanghai Cultural Law Enforcement Agency ordered the accused to stop infringement and imposed a nominal fine of several tens of thousand RMB yuan in compliance with the Regulations for the Protection of Computer Software and the Law on Administrative Penalty of P. R. China.

【Comments】
The case is the first computer software infringement case since Shanghai Municipal Cultural Law Enforcement Agency undertook the copyright law-enforcing work in Shanghai from July 2010. With the principle of “Link Education with Penalty”, the Cultural Law Enforcement Agency promoted the reconciliation between the two parties through legal education and administrative law enforcement, and supported them to sign the software authorization agreement with large amount of value, which led to great influence in the industry.

VII. The Case of Microsoft suing Dazhong Insurance for Copyright Infringement

【Introduction】
Microsoft Corporation owns the copyright of Microsoft Server series software. It found that the actual use of its software by Dazhong Insurance Co., Ltd. was different with the purchase records in Microsoft’s data base. Microsoft then issued a lawyer’s letter to Dazhong Insurance, hoping that it could stop using unauthorized Microsoft software immediately and replace with the authorized editions. On February 16th, 2009, both parties achieved the Meeting Summary on software purchasing after negotiation. But afterwards Dazhong Insurance didn’t perform the purchasing plan in compliance with the Meeting Summary. Therefore, Microsoft commenced a lawsuit in the court, demanding the defendant to compensate with RMB 1,169,792 for economic loss and to make public apology on Xinmin Evening News. During the hearing, the court preserved evidence of using the software by the defendant in its operating place according to the plaintiff’s application. The court found out that the software in the case was actually used in all the 11 servers selectively inspected in the computer room of the defendant.

【Result】
After the hearing, the court adjudicated that the defendant Dazhong Insurance Co., Ltd. should compensate RMB 1,100,000 to Microsoft Corporation for its economic loss and other reasonable expenses of RMB 47,673. Other litigations of the plaintiff Microsoft Corporation were refused.

【Comments】
As computer software could be easily uninstalled and deleted, there are great difficulties for the IPR owner to obtain evidence from end users using pirate software in reality. According to application for evidence preservation filed by the plaintiff, the court conducted a random inspection to the computers and servers in the operation place of the defendant, and fixed the infringement evidence. The evidence preservation has played an important role in the affirmation of infringement and the amount of compensation. Although the copyright law has formulated the maximum limit of statutory compensation as RMB 500,000, reasonable amount of compensation should be added if there are evidences proving that the loss of IPR owner or illegal benefits of the infringer has exceeded the maximum limit. Therefore, according to the evidence preserved, the court determined a reasonable amount of compensation in addition to the maximum limit of statutory compensation. After the trial, both parties didn’t lodge an appeal.  The court also sent a copy of judicial proposals to Shanghai Municipal Financial Service Office, suggesting the Office to enhance supervision on financial enterprises, with another copy to the Shanghai Bureau of China Insurance Regulatory Commission. Shanghai Municipal Financial Service Office responded actively by indicating that 3 improvement measures had been adopted to promote financial enterprises in Shanghai to enhance IPR protection.

 
VIII. The Case of Violation to Trade Secret by Shanghai Xinlue Electronics Technology Co., Ltd and Zhang Zhaofeng

【Introduction】
Since December 2003, Zhang Zhaofeng had worked in DXY Communications (Shanghai) Co., Ltd, and both parties signed the Agreement on Confidentiality and Working Achievements. Later, Zhang Zhaofeng took the position of Vice President and Chief Scientist of DXY Company, in charge of all technical projects of the company. In February 2007, Zhang Zhaofeng violated the company’s provisions and backed up all database files of the CL6010A4 chip design.
In August 2007, Zhang Zhaofeng resigned from DXY Company. On October 17th, Zhang Zhaofeng established Shanghai Xinlue Electronics Technology Co., Ltd as its legal representative and president. In August 2007, Zhang Zhaofeng copied the CL6010A4 chip database files onto the intranet server of Xinlue Company and required the technicians to refer to these files in designing. Since December 2007, Xinlue Company started to sell chip products.
In June 2009, Shanghai Stars Digital Forensic Center appraised and declared that the chips of Xinlue Company including CS1000, CS1000A2, CS1000A3, CS1400 and CS1691 were in substantial similarity with CL6010FM chip of the DXY Company. On June 11th 2010, the IPR Judicial Appraising Organ of CSIP issued a judicial appraisal conclusion that Xinlue’s CS1000A0 chip was in substantial similarity with DXY’s CL6010A4 chip.  Account verification proved that Xinlue Company made the gross profit of USD 331,000 (RMB 2,249,000 equally) by selling CS1000 chips (CS1000A0 equally) through Cresilicon Technology Company overseas.

【Result】
The defendant Shanghai Xinlue Electronics Technology Co., Ltd committed the crime of infringing trade secret, and was fined RMB 1,150,000. The defendant Zhang Zhaofeng committed the crime of infringing trade secret, and was sentenced to imprisonment for two years with two-year probation, and was fined RMB 1,100,000. The illegal gains were recovered to DXY Communications.

【Comments】
(1) This case is the first criminal case in China’s FM chip field. The DXY Communications is a manufacturer of high reputation in the industry of FM chips production. The technology involved in the case is very professional and not known by the public, therefore professional organs made comparison appraisal to distinguish the technical information included in Xinlue’s CS1000A0 chip and DXY’s CL6010A4 chip. The court made the adjudication order based on this appraisal.
(2) It is common that in high-tech area the high-position staff infringes the trade secret of their former employer by making a “fresh start”. The defendant owns a doctor’s degree and was the technical director in the former company. Afterwards he resigned to establish the Shanghai Xinlue Electronics Company as main sponsor and legal representative. Zhang Zhaofeng copied the CL6010A4 chip database files to the intranet server of Xinlue Company without authorization, and required relevant technicians to refer to this database. This phenomenon causes great economic loss to former employer and huge social harm.
(3) The case showed that the IP protection is highly improved.
This case showed that there are still many employees in high technology field lack of legal awareness. It also showed the great efforts for IPR protection by judicial organizations. Huge fine was also imposed on the infringing company together with imprisonment & monetary punishment to its executive, which minimized the economic loss of the plaintiff and provided guidance for orderly competition of relevant industries according to the laws.
 
IX. The Case of Trademark Counterfeiting by Bai Yanzhao, Zhao Chaolong and Bai Maidui

【Introduction】
From August 2009, Bai Yanzhao and others rented one house at No.21Jiulong Road, Gongdao Town, Yangzhou in Jiangsu Province, and organized staff to produce counterfeit plush toys of World Expo Mascot “Haibao”. Bai Yanzhao and others employed Zhao Chaolong and Bai Maidui. They rented some places as the warehouse and wholesale site, including No.10, Lane 341, Hankou Road in Shanghai. Zhao Chaolong and Bai Maidui were responsible for the storage and sales. From October 2009 to January 2010, they totally sold 258,180 pieces of counterfeit “Haibao” plush toys, with the total sales volume of RMB 447,349.50. And another 22,824 counterfeit “Haibao” plush toys with large number of counterfeit World Expo marks and tools for committing crimes were also seized. After the appraisal and valuation of Shanghai Price Determination Center, the seized counterfeit “Haibao” plush toys had a total value of RMB 64, 129.

【Result】
Huangpu District People"s Procuratorate initiated a public prosecution to the District People"s Court on July 2nd 2010. And the District Court held a hearing on July 26th, confirmed all the criminal facts charged in the indictment. In the judgment of the court, three defendants committed the crime of counterfeiting registered trademarks. The defendant Bai Yanzhao was sentenced to imprisonment with four years and was fined with RMB 100,000. The defendants Zhao Chaolong and Bai Maidui were respectively sentenced to one year in jail and fined with RMB 10,000. The Defendant Zhao Chaolong lodged an appeal but he applied to withdraw the appeal in the second trial. The Municipal Second Intermediate People"s Court agreed Zhao Chaolong to withdraw the appeal on September 14th. The original judgment had been legally effective.

【Comments】
The Case is the first criminal IPR case on the infringement of World Expo trademark and a case in relevant with the source of producing and selling commodities counterfeiting World Expo trademark. It attracted concerns of all sectors of the society. Xinmin Net, China Court Net, Shanghai Court Net and interactive TV organized live broadcast throughout the whole trial process of the case.
This case involved many criminal suspects. The production and sales places are respectively set in Yangzhou, Jiangsu Province and Shanghai, which added some difficulty to the investigation. In the review process, the public prosecution organ guided the public security organs to attach great importance to the legitimacy of the evidence collection and the fixed effectiveness of evidence. The excellent evidence deduction of the prosecutor and the enhancement of the peripheral evidence application all led to powerful allegations, which effectively accelerated the hearing process with judgment made on the court for such a complicated case in half a day.

X. The Case of Selling Counterfeit Commodities by Ying Xueping and Wang Caifen

【Introduction】
The Bureau of the Shanghai World Expo Coordination registered trademarks “ ” and “ ” after approval of the Trademark Office of the State Administration for Industry and Commerce.
In June, 2010, the defendants Ying Xueping, Wang Caifen and Wang Xiangjiao (be dealt with separately in another case) bought a large quantity of caps, crystal models of World Expo China Pavilion, key rings, cell-phone chains and pendants from Shanghai Town God Temple Market for sales. On June 4th, law enforcement officers seized 58,864 pieces of the unsold goods with the total value of RMB 1,380,412 in the rented house of the defendants. All the defendants were arrested on the spot.

【Result】
The court made a verdict that the defendants Ying Xueping and Wang Caifen committed the crime of selling counterfeit commodities with the imprisonment of 2 years and 6 months and the fine of RMB 200,000 for each to them. All the counterfeit goods were confiscated.

【Comments】
This is the case in which three unemployed women (one of whom is in escape) from other provinces took the opportunity of the World Expo to sell counterfeit commodities for huge illegal interests. The World Expo is an important stage for expressing human wisdom and exchanging innovation progress of various countries. The IPR protection of World Expo has attracted attention of the whole society and the world. One major task of Shanghai courts for the IPR protection of World Expo is to properly hear the relevant IPR cases. Therefore, the processing of this case showed the effective efforts of China’s judicial IPR protection with both social and legal effects well considered. Those defendants committed the crime during the World Expo, resulting in large social influence and serious aftermath. So both two defendants should be strictly punished. However, the defendants had not accomplish the crime yet and showed good attitude for repentance. To display the criminal judicial policy of “Combining Leniency with Severity” in China, the court decided to give a lesser punishment. The judgment of the case not only punished and educated the defendants, but also imposed a warning to others and demonstrated the strong judicial protection for the Shanghai World Expo.

 

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