In recent years, in accordance with the unified deployment of the Ministry of Public Security, public security authorities nationwide have continuously and intensively carried out special operations such as “Kunlun,” strengthened criminal protection of intellectual property rights, and lawfully cracked down on various crimes involving infringement and counterfeiting. These efforts have played an important supporting role in empowering innovation-driven development, optimizing the business environment, promoting cultural prosperity, and safeguarding public well-being and safety. On April 25, the Ministry of Public Security released a number of typical cases in which public security authorities strengthened criminal protection of intellectual property rights and provided services and safeguards for high-quality development. The case involving the production and sale of pirated toys by Yang Mou Shan and others, handled by Lusheng Law Firm on behalf of an internationally renowned toy and entertainment group, was honorably selected.
Brief Case Overview
The public security authorities in Shandong cracked the case involving the production and sale of pirated toys by Yang Mou Shan and others. In June 2024, based on clues reported by the right holder enterprise, the public security authorities in Heze, Shandong, solved the case, arrested 29 criminal suspects, destroyed 7 criminal dens, and seized more than 100,000 pirated toys on site, involving an amount of more than RMB 76 million. The investigation revealed that since November 2019, the criminal suspect Yang Mou Shan and others had registered multiple companies and engaged in large-scale production of pirated toys, copying the design of product packaging, printing assembly instructions, and, after packaging, selling the products externally through e-commerce online stores and physical shops in small commodity markets.
Lusheng Law Firm assisted the client and the public security authorities in handling this case.
Typical Significance
This case is another major case involving the crackdown on the manufacture and sale of pirated toys in which Lusheng Law Firm assisted the right holder and the Shandong public security authorities. The significance of this case lies not only in the exceptionally high amount involved, but also in the full-chain crackdown and the severance of the cross-border supply chain of infringing products. In this case, our firm assisted the public security authorities in uncovering the entire network responsible for the design and manufacture of pirated toys. In addition to the persons in charge of the factories manufacturing pirated toys and their key managers, the authorities also arrested the designers of the pirated toys, as well as downstream distributors responsible for wholesale, retail, and export, thereby achieving a comprehensive and thorough crackdown on the entire infringing business model. The infringing products in this case were exported by traders to multiple countries in Southeast Asia, Europe, and other regions. This crackdown has severed the export routes of the infringing products and also helps to establish China’s image of protecting intellectual property rights in the international arena.
