Page 154 - 2022 White Paper on the Business Environment in China
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2 White Paper on the Business Environment in China
and produced a series of building toys and sold F. Conclusion
them on the market. Li Haipeng instructed Du
Zhihao and others to purchase the latest series The importance of IP in national development
of LEGO toys to specially replicate the said LEGO is fully appreciated at the highest levels of the
building brick toy products by dissembling Chinese government and evidenced by the Outline
and studying, computer modeling, copying the for Development of a Strong Nation of Intellectual
drawings, authorizing others to create molds, etc. Property from 2021 to 2035, issued by the Central
They created the brand “LEPIN” for sales online, Committee of the Communist Party and the State
offline, or by other means. Shanghai Municipal Counsel in September 2021. As such, they have
Public Security Bureau seized 88 injection molds, seriously focused on creating, developing and
68 spare parts, 289,411 packaging boxes, 175,141 protecting IP. IP will be a major foundation of the
instruction manuals, more than 50,000 delivery Chinese government’s efforts to become a strong
forms, and 603,875 LEPIN toys which were and leading nation by 2035.
replicates of LEGO series in a factory rented by the
Defendant, Li Haipeng. Upon examination by the The development of ever new and useful IP
Copyright Appraisal Committee of the Copyright institutions, such as, the Hainan Free Trade Port,
Protection Center of China, LEPIN toys and photo Intellectual Property Court; and, as of November
collections were found substantially the same as 2020, 54 IPR protection centers throughout China
the LEGO toys and photo collections, formed a are evidence of the efforts of the government to
relationship of replication. The No. 3 Branch of the create an environment where IP flourishes.
Shanghai People’s Procuratorate prosecuted this
case. The courts of first and second hearing both The Chinese government since 1978 has shown it
held that Li Haipeng, together with Yan Longjun, is not tied to rigid ideology but can be flexible in its
Zhang Tao, Wang Peizhen, Lu Peifeng, Wang policies, in order to grow and develop. For example,
Ruihe, Yu Kebin, Li Heng and others replicated its opening to foreign investment starting in 1978,
and sold the art works copyrighted by LEGO, and contributed to and still contributes to an important
in return gained illegal business income of more part of its economic development. Furthermore,
than 330 million yuan. As one of the distributors, it has encouraged competition between Chinese
Du Zhihao, released the art works copyrighted enterprises. For very important parts of the Chinese
by LEGO without permission of the copyright economy, the Chinese government has relied upon
owner, and gained illegal business income of the market to operate relatively freely. The Chinese
more than 6.21 million yuan. Such acts were fell government is now in the process of establishing
under extraordinarily serious circumstances and a fourth foundation for growth by encouraging the
constituted the crime of copyright infringement. creation of new ideas, techniques and products
that stimulate economic growth.
[Significance] This is a model case of the
increasing efforts to crackdown at IP crimes. In The weakness of the Chinese government’s plan
accordance with relevant laws and regulations, is that the legal institutions and the administrative
the court of hearing sentenced the principal institutions that administer the law are weak.
offender, Li Haipeng to six years to imprisonment While China has many fine law departments in
and imposed a fine of 90 million yuan. The excellent universities and has many outstanding
court sentenced the other eight accomplices to lawyers, its legal institutions are quite weak. This
imprisonment, from three years to four years weakness is not in relationship to its dealings
and six months, with relevant fines. This case with foreign courts. As we can see from the 2019
demonstrates that the courts’ judicial orientation case before the Supreme People’s Court, Huawei
is to strengthen criminal protection, by severely Technologies Co. Ltd, et al v. Conversant Wireless
cracking down on criminal offenses having Licensing S.A.R.L., when Huawei filed an injunction
intellectual property infringement. application to stop Conversant Company’s from
enforcement of the German Court’s judgment, the
Supreme People’s Court issued the injunction and
held that Conversant would be fined one million
154
and produced a series of building toys and sold F. Conclusion
them on the market. Li Haipeng instructed Du
Zhihao and others to purchase the latest series The importance of IP in national development
of LEGO toys to specially replicate the said LEGO is fully appreciated at the highest levels of the
building brick toy products by dissembling Chinese government and evidenced by the Outline
and studying, computer modeling, copying the for Development of a Strong Nation of Intellectual
drawings, authorizing others to create molds, etc. Property from 2021 to 2035, issued by the Central
They created the brand “LEPIN” for sales online, Committee of the Communist Party and the State
offline, or by other means. Shanghai Municipal Counsel in September 2021. As such, they have
Public Security Bureau seized 88 injection molds, seriously focused on creating, developing and
68 spare parts, 289,411 packaging boxes, 175,141 protecting IP. IP will be a major foundation of the
instruction manuals, more than 50,000 delivery Chinese government’s efforts to become a strong
forms, and 603,875 LEPIN toys which were and leading nation by 2035.
replicates of LEGO series in a factory rented by the
Defendant, Li Haipeng. Upon examination by the The development of ever new and useful IP
Copyright Appraisal Committee of the Copyright institutions, such as, the Hainan Free Trade Port,
Protection Center of China, LEPIN toys and photo Intellectual Property Court; and, as of November
collections were found substantially the same as 2020, 54 IPR protection centers throughout China
the LEGO toys and photo collections, formed a are evidence of the efforts of the government to
relationship of replication. The No. 3 Branch of the create an environment where IP flourishes.
Shanghai People’s Procuratorate prosecuted this
case. The courts of first and second hearing both The Chinese government since 1978 has shown it
held that Li Haipeng, together with Yan Longjun, is not tied to rigid ideology but can be flexible in its
Zhang Tao, Wang Peizhen, Lu Peifeng, Wang policies, in order to grow and develop. For example,
Ruihe, Yu Kebin, Li Heng and others replicated its opening to foreign investment starting in 1978,
and sold the art works copyrighted by LEGO, and contributed to and still contributes to an important
in return gained illegal business income of more part of its economic development. Furthermore,
than 330 million yuan. As one of the distributors, it has encouraged competition between Chinese
Du Zhihao, released the art works copyrighted enterprises. For very important parts of the Chinese
by LEGO without permission of the copyright economy, the Chinese government has relied upon
owner, and gained illegal business income of the market to operate relatively freely. The Chinese
more than 6.21 million yuan. Such acts were fell government is now in the process of establishing
under extraordinarily serious circumstances and a fourth foundation for growth by encouraging the
constituted the crime of copyright infringement. creation of new ideas, techniques and products
that stimulate economic growth.
[Significance] This is a model case of the
increasing efforts to crackdown at IP crimes. In The weakness of the Chinese government’s plan
accordance with relevant laws and regulations, is that the legal institutions and the administrative
the court of hearing sentenced the principal institutions that administer the law are weak.
offender, Li Haipeng to six years to imprisonment While China has many fine law departments in
and imposed a fine of 90 million yuan. The excellent universities and has many outstanding
court sentenced the other eight accomplices to lawyers, its legal institutions are quite weak. This
imprisonment, from three years to four years weakness is not in relationship to its dealings
and six months, with relevant fines. This case with foreign courts. As we can see from the 2019
demonstrates that the courts’ judicial orientation case before the Supreme People’s Court, Huawei
is to strengthen criminal protection, by severely Technologies Co. Ltd, et al v. Conversant Wireless
cracking down on criminal offenses having Licensing S.A.R.L., when Huawei filed an injunction
intellectual property infringement. application to stop Conversant Company’s from
enforcement of the German Court’s judgment, the
Supreme People’s Court issued the injunction and
held that Conversant would be fined one million
154
