Imagine discovering a hidden trove of fake products so vast it turns a standard crackdown into a headline-making criminal case. That's exactly what happened when we unearthed a staggering cache of counterfeit clothing from a well-known Japanese brand in China. The sheer scale of the fakes has propelled the case into the hands of the procuratorate, spotlighting the relentless battle against trademark infringement. For businesses around the globe, this is a wake-up call to safeguard your brand with unwavering diligence.

Our client owns a renowned clothing brand in Japan and simultaneously enjoys an excellent reputation in Chinese mainland. In 2022, during our online market surveillance, we found one online store that was selling counterfeit clothing infringing on our client's trademark rights and copyrights in China. Through our further investigation, we identified the upstream seller of the counterfeits and discovered that these counterfeits were originated from a Shanghai company, which appeared to be one of the real sources of our client’s counterfeits in China as well as the owner of copycatted trademarks that were highly similar to our client's.

During our initial investigation, our investigator discovered a warehouse in Jiangsu Province, storing counterfeit clothing. By tracking the waybill address of counterfeits from an online store with high sales volume, it was found that there were over 1,000 infringing products in stock in the warehouse.

Recognizing the urgency of the situation, we immediately reported the situation to our client and thereafter conducted enforcements against the target in a timely manner, including the notary purchase and raid action, etc. In early 2023, we assisted the local Administration for Market Regulation (“AMR”) to conduct the raid action against the target, through which AMR seized approximately 20,000 pieces of counterfeit products. We also assisted the local AMR in communicating with the client when they were dealing with the counterfeits in the subject case, assisting them in identifying the counterfeits as well as providing identification / verification report on the counterfeits.

Given that the volume of the counterfeits involved met the criterion for criminal prosecution as stipulated in the Chinese Criminal Law, the local AMR has handed it over to the Public Security Bureau (“PSB”) after evaluating the additional legal risks within their inner department. The criminal suspects will face criminal liability for infringing our client's IP rights.

Why This Case Matters

This case stands as a clear-cut example of how a simple administrative action can escalate into a serious criminal matter evolving intellectual property (IP). Our team's swift and decisive moves made all the difference: spotting the infringement, uncovering hidden stockpiles of fakes, and coordinating with local authorities to conduct a raid. We didn't stop there; we supported the identification of the counterfeit goods with detailed reports, ensuring that the rights of our client were front and center.

Our efforts highlight the critical need to protect the IP rights of international businesses in China. We've shown that with quick action, thorough investigation, and deep expertise, it's possible to strike a blow against IP theft. This case has become a guiding light for our clients facing similar challenges, reinforcing their rights and prompting faster action against counterfeiters in the future.

The impact of this case extends beyond our client's immediate interests. It strengthens their brand, protects their place in the market, and, importantly, upholds consumer trust. In an industry plagued by fakes, where counterfeit clothing is rampant due to low production costs, this victory is a win for everyone who values authenticity and quality.