Chinese court decision against counterfeiters
The Weir Group announces an historic Chinese court decision
against counterfeiters
In May 2011, a Chinese Court handed down criminal sentences and
monetary fines of unprecedented severity against two companies and
their managers for counterfeiting the famous HOPKINSONS valves,
which are manufactured and sold worldwide by The Weir Group
PLC.
The cases were against two companies and responsible individuals
who, since 2006, made and sold counterfeit HOPKINSONS branded
valves which quickly failed in service at Chinese power stations,
causing serious injuries and damage, due to the defective nature of
the product.
The counterfeiters were arrested by China's Public Security
Bureau (PSB) in late 2009 following in-depth investigations, and
placed in custody. Weir, along with customers and
partners, provided information which assisted in the investigations
and in the prosecution of the counterfeiters.
The case went to criminal trial in the Yangzhou Intermediate
People's Court in Jiangsu, China in December 2010, and the
prosecution proved that these valve products were
counterfeit, failed to comply with compulsory national
standards and were of poor quality. In addition, the defendants
misrepresented their manufacturing location by telling customers
that they were imported from the UK. The total sales generated from
this illegal business operation exceeded RMB 11 million (£1m).
The first company, Yangzhou Yikai Machinery and Engineering Co.
Ltd. ("Yikai"), was found guilty of making and selling substandard
goods and engaging in illegal business, and has been ordered to pay
a fine of RMB 7,000,000 (£666,000). Yikai's manager has been
found guilty of the same crimes, sentenced to 15 years 6 months
imprisonment and ordered to pay RMB1,300,000 (£124,000).
The second company, Shanghai Saimeng Mechatronic Engineering Co.
Ltd. ("Saimeng"), has been found guilty of similar crimes and
ordered to pay a fine of RMB 500,000 (£48,000). Saimeng's
manager has been found guilty of the crimes of manufacturing and
selling substandard goods, engaging in illegal business and
counterfeiting trademarks. He has been sentenced to 16 years
imprisonment and ordered to pay RMB1,350,000 (£129,000).
More…
Alan Mitchelson, Legal & Commercial Director of The Weir Group
said: "It has taken us more than a year of perseverance, but
the outcome of this case is reassurance to our employees, customers
and shareholders that the unauthorised use of our trademarks will
not be tolerated. Such high fines and long criminal jail
sentences are very rare in China for intellectual property crimes.
The Weir Group greatly appreciates the support of police,
prosecutors and Courts in China who have taken resolute enforcement
actions against these counterfeiters including the seizure of these
defective, counterfeit products
"Counterfeiting not only negatively impacts the economy and
innovation, but also puts customers and users at great risk" said
Cyril Leung, Managing Director of Weir China. "Time and time
again substandard counterfeit products have caused industrial down
time and risk to human life. This case again highlights the
importance to be placed on quality and safety."
For more information:
Helen Walker
Group Public Relations Manager
The Weir Group PLC
Tel. +44 (0) 141 637 7111/07789 032296
e-mail: Helen.Walker@weir.co.uk
Copies of the decision of the Court (in Chinese and English),
are available from Dr Malcolm Engel, Intellectual Property Manager
for Weir.
Tel. +61 (0) 2 9934 5100 e-mail:
malcolm.engel@weirminerals.com
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