Chinese Copycats Sentenced for Infringing LEGO Toy Products
China takes strides towards ensuring intellectual property rights protection
As China looks to improve its record to prevent intellectual property theft, the country has been taking strict actions to protect intellectual property rights. The decision of Shanghai’s Intermediate People’s Court in the LEGO copyright infringement case exemplifies China’s renewed stance towards creating an ecosystem that protects intellectual property rights.
Shanghai's Intermediate People's Court sentenced nine people for infringement of LEGO's copyrights.
From 2015 to April 2019 the defendants manufactured and sold the products that looked similar to the products manufactured by Danish toymaker LEGO. These products were sold under the brand name LEPIN. The defendants also operated their shops on e-commerce platforms such as Taobao.
On April 23, 2019, injection moulds used to replicate LEGO toys, spare parts for assembling moulds, and various packaging boxes were seized by the Shanghai Municipal Public Security Bureau.
Counterfeit products disrupt the socialist market structure of China’s Economy
Noting the impact the counterfeit toys had on the economy, the Shanghai No.3 Intermediate People's Court stated in its judgment, “Most of the counterfeit toys involved in the case have entered into the market, not only infringing intellectual property rights but also causing the right holders to lose goodwill. It caused heavy losses and hurt economic interests and it also severely disrupted the order of the socialist market economy. The circumstances of the crime were particularly serious and the effect on society was extremely harmful.”
Li sentenced to 6 years of imprisonment including a fine of RMB 90 million
According to the different roles of the defendants in the joint crime, the Court determined that the defendant Li was the principal offender. He was directed to pay RMB 90 million and was sentenced to six years of imprisonment. The remaining eight defendants were treated as accomplices and were given lighter sentences. They were sentenced to fixed-term imprisonment ranging from three years to four years and six months and were fined accordingly.
Danish toymaker Lego welcomes the Court’s decision
LEGO appreciated the decision of Chinese courts and said "We appreciate the continued focus on intellectual property protection and enforcement by the Chinese courts and authorities. It is important for the continued development of a favourable business environment for all companies operating in China. We will continue to take action against companies that breach our copyrights and seek to mislead our consumers."
