Chinese Supreme Court Upholds Landmark Ruling On Infringing Plant Variety Rights
Significant damages were awarded to a foreign fruit producer by the court;
Chinese Supreme Court Upholds Landmark Ruling On Infringing Plant Variety Rights
Significant damages were awarded to a foreign fruit producer by the court
The Supreme People's Court of China has endorsed a significant ruling granting a New Zealand fruit producer RMB 3.3m (£351k) in damages following encroachment of its plant variety rights (PVR) for a popular apple variety.
Chinese IP firm Lusheng represented Enzafruit, a subsidiary of New Zealand-based fresh produce business T&G Global. The firm reportedly said that it was a ‘remarkable compensation amount awarded" for a PVR infringement case, a type of IP right protecting plant varieties.
The February 26 decision of the Supreme Court endorsed a previous November 2023 ruling by the Lanzhou Intermediate Court of Gansu Province protecting the Scilate apple, brand name Envy, which is among New Zealand’s leading apple varieties.
According to the Supreme Court, the defendant, a local farmer, had encroached upon the IP rights of Enzafruit by illegally producing and selling Scilate plant variety material and apples harvested from illegal materials. The encroacher was directed to cease all violations and destroy unlawfully proliferated plant materials to protect the rights and interests of the plaintiff.
The variety of apple is legally grown in China with Joy Wing Mau, Enzafruit’s Partner.
The firm observed that the ruling was ‘one of a few of its kind’, setting an example for foreign and domestic PVR holders by expanding protection over any harvested fruit to propagation material of any variety.
Sunny Su, a principal in Lusheng's digital and commercial team, reportedly commented: “This successful case underscores the increasing importance of IP protection for local and foreign brand owners in China's agrifood industry, particularly given the rising demand for quality produce.”
Liping Xu, Lusheng senior litigator, reportedly said that the case represented one of the “rare instances in the new plant varieties where punitive damages have been applied in high-compensation cases”. He reportedly observed: "The destruction of illegally propagated plant materials is the most effective means of safeguarding the interests of PVR holders.”
Whereas an Enzafruit spokesperson reportedly called it a ‘landmark ruling’ and added: “This decision paves the way for T&G Global to accelerate their growth plans and further contribute to China's thriving horticulture sector.”
