The brand “Anchor”, which is owned by Fonterra, is one of the top imported brands for dairy products in China, especially on e-commerce platforms.
In a recent judgement, the Shanghai Jinshan Primary People’s Court delivered a verdict and sentenced the defendant Wang to 4.5 years in prison plus a fine of 2 million RMB for counterfeiting “Anchor” and “Fonterra” trademarks. A co-defendant also received a suspended sentence.
The legal proceeding originated from a raid action in October 2020 when the local PSB seized a large number of counterfeit “Anchor” dairy products valued at over 30,000 RMB. Through investigation, it was found that, over the past years, Wang and his accomplices had sold around 8 million RMB worth of counterfeit dairy products bearing “Anchor” trademarks, mainly through online platform.
Wang was arrested in 2022, and the court announced the sentencing on October 24, 2023.
The court holds that the defendants have used the same trademark registered by others on the same goods without the permission of the trademark owner. By doing such illegal business, they have made huge revenues and their actions have constituted the crime of counterfeiting registered trademarks as well as infringement upon others’ IP rights.
According to the judge, this case reflects that China provides diversified legal remedies for trademark infringement, which harms trademark owners, confuses consumers, and disrupts the market order. Counterfeiting of registered trademarks can lead to civil, administrative, and even criminal liabilities. The legal provisions, such as Articles 57, 60, and 63 of the Trademark Law and Articles 213, 214, and 215 of the Criminal Law, serve to protect trademark owners and consumers as well as ensure a fair competition environment in the market.
Additionally, this case is a reminder for the consumers to opt for authorized channels when making purchasing choices. Since online platforms have become the main method of shopping for many consumers and it’s difficult to verify the products before purchasing, consumers are advised to choose regular or authorized merchants and platforms to ensure the authenticity of their purchases.
Lastly, the server punishment sentenced to Wang and the co-defendant also brings a deterrent effect to the other potential criminal acts, which could further protect the interest the consumers and maintain a fare market environment.
