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SHEN Making and Marketing Fake and Shoddy Products

by:GenuinewaysPosted:2004-09-16

SUMMARY:

SHEN (from Cixi, Zhejiang Province) gathered a group of people and carried out organized continuous production and sales of fake printer consumables of HP, CANON, etc brands in Beijing, with huge illegal profits. In 2003 Genuineways on behalf of HP filed a complaint with Beijing Administration for Industry and Commerce, which raided the underground processing den of SHEN, who managed to escape and later intensified the counterfeiting acts of a larger scale, which came to the attention of Genuineways in 2004. In view of that, Genuineways held the serious acts of SHEN ask for a further legal action to protect legitimate rights and interests of the right holder.

Genuineways on behalf of HP filed a complaint with Haidian Public Security Bureau which placed the case on file. After circumspect arrangements, on April 20, 2004, more than 30 police participated in the raid for three days under the assistance of investigators from Genuineways, which eliminated all the underground processing dens and warehouses of SHEN, seized 730 finished and over 2000 semi-finished fake HP toner cartridges, as well as counterfeits of other brands and thousands of counterfeit packaging and labels, and kept 21 people including the principal - SHEN under criminal detention.The Intermediate People's Court of Haidian determined that SHEN was guilty of making and marketing fake and shoddy products, subject to a sentence of four months and a year and a fine of CNY40, 000, with another 12 people sentenced to one year or six months and a fine.

This case was highly regarded by Quality Brands Protection Committee as a Best Case in 2004-2005.

COMMENTS:

This case is characterized in serious factors, many people subject to arrestment and sentence and a huge social impact. The continuous illegal acts and high-volume production and sales of SHEN as a recidivist constituted more serious factors as provided for in the Criminal Law. The complete collapse of the counterfeiting network produced some deterrent effects among other counterfeiters.

Attachment:Judgment made by the People's Court of Haidian on SHEN