On September 2, 2020, the Shanghai Third Intermediate Court sentenced nine individuals to up to six years in prison and fines of RMB 90 million (approximately $13 million) for infringing on the Danish toymaker LEGO’s products.
Specifically, the nine individuals were sentenced for distributing toy products significantly similar to LEGO’s products under the brand name LEPIN (乐拼). This group began its operation in 2015 under the company name Shantou Meizhi Model Co., Ltd, where it had purchased LEGO sets, dismantled and studied them, and then recreated them in their own factories for resale. The re-creations were a one-to-one replica of LEGO’s products. Over the years, LEPIN sold approximately over RMB 300 Million worth of these counterfeit toys.
LEGO had sued the creator of LEPIN, Shantou Meizhi Model Co., Ltd, for copyright infringement and unfair competition under China’s Copyright Law in 2017. The Guangzhou Intellectual Property Court sided with LEGO and ordered the company to halt all infringing activity. It also awarded LEGO RMB 4.7 million (approximately $717,000) in damages. On April 23, 2019, Shanghai police seized 603,875 LEPIN toy products worth approximately RMB 31.5 million in a factory leased by one of the nine sentenced.
"We appreciate the continued focus on intellectual property protection and enforcement by the Chinese courts and authorities. It is important for the continued development of a favourable [sic] business environment for all companies operating in China. We will continue to take action against companies that breach our copyrights and seek to mislead our consumers," LEGO Group told the Global Times.
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