What did the authorized dealer do when he became a trademark infringement offender?

With the continuous improvement of domestic consumption level and consumption power, all kinds of overseas brand owners have turned their attention to the Chinese market. The most direct and easy way for foreign brands to enter the domestic market is to find Chinese distributors.

 

It is a good thing to be an agent for foreign brands. However, the authorized agent dealer in this case was not satisfied with the agent, but took the opportunity to obtain the product ingredient list and forged the production authorization letter, entrusted the company to produce counterfeit brand products, pursued illegal interests through illegal acts, and eventually put himself in prison.

 

In 2016, Wang met the brand in Australia. After negotiation with the brand, Wang Mou obtained the distribution agency of the brand in the Chinese market, the brand issued a letter of authorization, and in the letter of authorization, it is clear that the scope of agency is limited to sales.

 

In 2018, Wang took advantage of the opportunity to assist the brand to file cosmetics in China and obtained the ingredient list of the eye cream involved. In 2019, in order to obtain illegal benefits, Wang used the signature on the authorization letter of the brand side to forge the production authorization letter, and used the previously obtained ingredient list to privately entrust domestic producers to produce, and then sold to unwitting distributors.

Basic case

The defendant Wang Mou, without the permission of the right holder, commissioned a Shanghai biotechnology Co., Ltd. to produce an eye cream printed with the registered trademark freezeframe. In March and July 2019, the two sides signed two procurement contracts. Defendant Wang instructed a Shanghai biotechnology Co., Ltd. to produce a total of more than 150,000 fake freezeframe brand eye cream, with a total price of more than 3.45 million yuan. After the completion of production, Wang, as the general distributor, sold some of the eye cream involved to domestic distributors and then sold it to consumers. Later, some consumers reflected that the eye cream was counterfeit goods, so the case. After the incident, the public security organs to seize the eye cream to identify, are counterfeit goods. The defendant Wang Mou was arrested by the public security organs, denied the above criminal facts.

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Case handling

 

First instance judgment:

On August 31, 2022, the court of first instance sentenced the defendant Wang Mou to the crime of counterfeiting registered trademarks and sentenced him to fixed-term imprisonment and a fine. On September 5, 2022, the defendant Wang Moumou refused to accept the first instance judgment and appealed.

 

Review and judgment of the second instance:

The defendant, Wang Moumou, appealed, arguing that he did not know that there was no authorization, while denying that the eye cream involved and the registered trademark approved goods belong to the same kind of goods, denying that the trademark used and the registered trademark are the same trademark.

 

The prosecutor of the second instance comprehensively reviewed the case, refuted Wang's defense of subjective knowing according to the witness testimony and the defendant Wang's behavior of forging the authorized production letter, and reviewed and analyzed the key factors such as the registered trademark and the goods approved by the registered trademark in the case, and determined that the case constituted the crime of counterfeiting the registered trademark. The three courts held that the facts determined by the court of first instance were clear, the evidence was indeed sufficient, the judgment was correct and the procedure was legal. The three courts recommended that the appeal be rejected and the original judgment upheld.

 

On March 10, 2023, the Third Intermediate People's Court of Shanghai made a ruling, rejecting the appeal and maintaining the original judgment.

Prosecutor's argument

The agent dealer is not the holder of the registered trademark and does not enjoy the exclusive rights of the registered trademark. Exceeding the authorized act, the minor is civil tort, serious is a crime. The defendant in this case privately produced eye cream involved in the case, and the production quantity is huge, not only infringes the trademark exclusive right of the right holder, but also counterfeit behavior, its commodity source, quality, efficacy, etc., misled consumers, seriously infringed on the rights and interests of consumers, such behavior is bound to be the object of criminal law, punishment. Source: Shanghai Procuratorial Third branch Contribution: Sixth Procuratorial Department

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