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Fake Packaging Containing Genuine Products Constitutes Crime of Illegally Manufacturing Registered Trademarks

The purchased large packages of "FERRERO ROCHER" chocolates are unpacked and replaced with small packages printed with the logo of "FERRERO ROCHER" made without the right holder's permission, and then sold to earn the difference. On August 18, 2021, Shanghai No.3 Intermediate People's Court made a first-instance judgment on the case of "sub-packaging the genuine products ", and sentenced the defendant Liu Mouyang to three years' imprisonment, suspended for five years and fined 300,000 yuan for the crime of illegally manufacturing registered trademarks.

"费列罗" and "FERRERO ROCHER" are legally registered trademarks of Ferrero Co., Ltd. that are approved for use on chocolate, and are all within the validity period. As of 2019, defendant Liu Mouyang, together with his younger brother (handled separately), purchased the T96 and T30 series of the "FERRERO ROCHER" chocolate products, and entrusted others to illegally manufacture labels, bottom cards, plastic boxes, bottom supports, outer packaging cartons, tapes and other packaging materials related to registered trademarks of "FERRERO ROCHER", in order to gain illegal profits. The two defendants hired day laborers to repack the purchased chocolate balls into chocolate products with higher unit price specifications (such as "FERRERO ROCHER" brand T8, T16, T24 and T32) with fake packaging materials, and then sold them to gain profit.

From July to September in 2020, the security organs seized more than 490,000 items suspected of counterfeiting the outer packaging of "FERRERO ROCHER" chocolate, involving more than 800,000 trademarks related to "FERRERO ROCHER". After identification, the seized products involved in the case used the same trademark logo as the registered trademark of the obligee without authorization.

After trial, Shanghai No.3 Intermediate People's Court held that the defendant Liu Mouyang entrusted others to produce more than 5.65 million of products with forged trademark logo of "FERRERO ROCHER" without the permission of the oblige, and the purchase price actually paid for the logo reached 1.7 million yuan. The circumstances were particularly serious, and the acts constituted the crime of illegally manufacturing the registered trademark logo.

In this case, the defendant purchased genuine "FERRERO ROCHER " chocolate with low unit price, and entrusted others to manufacture packaging materials with the registered trademark logo of the obligee in large quantities, aiming at seeking illegal benefits by purchasing products with low unit price specifications, repackaging the products with high unit price specifications, which not only undermines the regulations on trademark printing management, but also damages the goodwill of the obligee and consumers' rights and interests. In addition, the defendant does not have the qualification of food sub-packaging license, and cannot guarantee that the sanitary environmental conditions in the sub-packaging process and the health status of the sub-packaging personnel meet the sub-packaging standards, which poses food safety risks and brings potential safety hazards to consumers' health. Therefore, the defendant's behavior is harmful to society and meets the constitutive requirements of the crime of illegally manufacturing registered trademarks, and should therefore be convicted and punished according to law.