Trademark Infringement to Johnson & Johnson and Head & Shoulders

Release Time:2009/5/8 17:26:09            【Font-size:Big Middle Small】

 

【Case Briefing】

Defendant A, Suragy (UK), founded in Hong Kong a wholly self-owned company to do international trade. The company was named Hong Kong CI and managed by the founder. Defendant B, Li Xuyao, was the legal representative of Shanghai Sencun Cosmetic Co., Ltd. He decided to make fake products using registered trademarks and sell to defendant A. From June to September in the same year, defendant B and defendant C, Yao Fei, bought in the equipments and materials and outer packages needed for the manufacture of fake product from defendant D, Qian Yiping, and later organized defendant E, Sun Zhihui, and defendant F, Xia Shuming, to make such fake products using famous trademarks including Johnson & Johnson, Head & Shoulders, Nevia and Fa with a value totaling some RMB 2.06 million. The products included baby skin oil, skin crease and shampoo, etc. Some products worth RMB 1.43 million were sold to Defendant A for reselling.

【Result of Trial】

It was decided as first instance by Shanghai No.1 Intermediated People’s Court on November7, 2005 that: i. Suragy shall be sentenced to 4 year imprisonment and charged a fine of RMB 200,000 for distributing fake products, and shall be deported; ii. Li Xuyao, Yao Fei, Qian Yiping, Sun Zhihui and Xia Shuming shall be sentenced to imprisonment of one and half to five years respectively, and charged fines from RMB 50,000 to RMB 200,000 respectively for unauthorized use of registered trademarks. Shanghai Supreme People’s Court dismissed the appeal and upheld the decision of first instance as final on March 22, 2006.

【Case Analysis】

i. The case involved both domestic and offshore offenders in a larger number. It can be thought as complicity with international backgrounds.

ii. Sub-division of labor and an organized production and distribution line was observed in this case.

iii. The value of this offence amounted to as much as some RMB 2.06 million. And the victims were mainly internationally renowned cosmetic brands, indicating that the offence was on a relatively large scale.

 

                                                                          (source: Shanghai IP Administration)

Release Time：2009/5/8 17:26:09[ Print ]