Intellectual Property Finance View | Supreme People's Procuratorate Releases 9 Typical Cases of Intellectual Property Protection

Source: Procuratorial Daily Justice Network

April 26, 2024

On April 25th, the Supreme People's Procuratorate (SPP) released the third batch of typical cases concerning the comprehensive judicial protection of intellectual property rights by procuratorial organs. This batch includes 9 cases, covering criminal, civil, administrative, and public interest litigation aspects of intellectual property prosecution. These cases fully demonstrate the achievements of procuratorial organs in strengthening the comprehensive judicial protection of intellectual property rights and serving the development of new quality productive forces.

According to the head of the Fourth Procuratorial Office of the SPP, this batch of typical cases exhibits the following characteristics:

First, they highlight the value orientation of serving the development of new quality productive forces through comprehensive performance of duties. For example, in the case of Beijing Junmou Technology Co., Ltd. and others infringing on trade secrets, the procuratorial organ actively performed its duties, clarifying the boundaries of rights protection for high-tech enterprises, promoting industry self-discipline, and safeguarding the legitimate rights and interests of innovative entities.

Second, they emphasize the strict punishment of intellectual property infringement crimes according to law, fully utilizing the deterrent effect of criminal penalties. For instance, in the case of Li Mouwei and others counterfeiting registered trademarks and selling counterfeit registered trademark goods, the procuratorial organ cracked down on the entire chain of counterfeiting and selling counterfeit liquor, effectively deterring related crimes.

Third, they focus on strengthening the comprehensive judicial protection of intellectual property rights, promoting the coordinated application of criminal penalties, civil compensation, and administrative punishments. For example, in the case of Wu Moufeng and Shi Mouyuan selling counterfeit registered trademark goods, the procuratorial organ, while handling the criminal case, actively guided supplementary investigation and evidence collection, accurately identified the crime, and simultaneously considered the overlapping civil infringement issues, promoting the resolution of both criminal and civil aspects.

Fourth, they address new issues and challenges in the field of intellectual property protection, actively responding to judicial demands. For instance, in the case of Hao Mou infringing on copyright, the procuratorial organ accurately distinguished between legitimate borrowing and infringement plagiarism in the context of online literature, clarifying the rules for handling such cases.

Fifth, they showcase the continuous deepening of specialized intellectual property prosecution mechanisms, enhancing the quality and efficiency of case handling. For example, in the case of the administrative public interest litigation concerning the protection of the geographical indication "Xuxiu," the procuratorial organ fully leveraged the functions of administrative public interest litigation and government-procuratorate linkage mechanisms, promoting the protection of intellectual property rights in traditional cultural fields.

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Case 1:  1: Hao Mou Copyright Infringement Case

**Keywords:** Copyright Infringement | Online Literature | Plagiarism Identification | Comprehensive

Performance of Duties

**Summary:** In handling copyright infringement cases involving online literature, procuratorial organs should accurately distinguish between legitimate borrowing and infringement plagiarism based on the characteristics of online literature creation. They should strengthen communication and coordination with copyright administrative departments and industry associations, promote source governance, and enhance the protection awareness of relevant enterprises and the public regarding copyright.

**Basic Facts:** From June 2019 to February 2020, defendant Hao Mou, for profit, copied the main plot, character relationships, martial arts system, and specific descriptions of the online novel "Spirit Sword Sovereign" created by others. After modifying the character names and some plot details, Hao Mou published the work under the title "Peerless Sword Emperor" on multiple online platforms, gaining illegal profits exceeding 5 million RMB.

**Procuratorial Performance:** On March 15, 2021, the Chongqing Municipal Public Security Bureau's Shapingba District Branch transferred the case to the Shapingba District People's Procuratorate for review and prosecution. The procuratorate intervened early, guiding the investigation by suggesting focusing on comparing the core expressions of the two works, clarifying the creation process of the infringing work, and collecting evidence on the illegal gains. After reviewing the case, the procuratorate held that Hao Mou's actions constituted copyright infringement. On September 15, 2021, the Shapingba District People's Procuratorate filed a public prosecution against Hao Mou. On December 27, 2021, the Shapingba District People's Court sentenced Hao Mou to five years in prison and fined him 2 million RMB. Hao Mou did not appeal, and the verdict became effective.

Procurators discuss the case details.

During the case handling, the procuratorial organ discovered that the involved online reading platform failed to fulfill its review obligations for the uploaded works, leading to the widespread dissemination of infringing works. Consequently, the procuratorate issued procuratorial suggestions to the platform, urging it to strengthen content review, improve copyright protection mechanisms, and fulfill its platform responsibilities. The platform promptly rectified the issues based on the suggestions.

**Typical Significance:**

1. Accurately identify copyright infringement in online literature, clarifying the boundaries of rights protection. Online literature often involves borrowing from previous works. Procuratorial organs should accurately grasp the distinction between legitimate borrowing and infringement plagiarism, focusing on whether the core expressions such as original plot, overall structure, and character relationships are substantially similar, thereby accurately identifying copyright infringement.

2. Strengthen source governance and promote comprehensive industry regulation. Addressing the management loopholes exposed during case handling, procuratorial organs should promptly issue procuratorial suggestions to relevant platforms, urging them to improve copyright protection mechanisms, fulfill platform responsibilities, block the channels for infringement dissemination, and promote the healthy development of the online literature industry.

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Case 2:  2: Zhang Moumou Copyright Infringement Case

**Keywords:** Copyright Infringement | Film Works | Criminal and Civil Overlap | Reconciliation and Settlement

**Summary:** In handling copyright infringement cases involving both criminal and civil aspects, procuratorial organs should adhere to the principle of coordinated recovery and punishment. While punishing crimes according to law, they should actively promote reconciliation between the parties, urge infringers to compensate for losses, effectively resolve conflicts, and achieve optimal legal, social, and political outcomes.

**Basic Facts:** From October 2021 to March 2022, defendant Zhang Moumou, for profit, illegally obtained high-definition film sources of 8 Spring Festival movies, including "The Battle at Lake Changjin II," through online channels. Zhang Moumou then operated multiple film websites and apps, providing online viewing services for these films without authorization from the copyright holders, attracting users and generating advertising revenue, resulting in illegal gains exceeding 200,000 RMB.

**Procuratorial Performance:** On March 18, 2022, the Shanghai Municipal Public Security Bureau's Yangpu District Branch transferred the case to the Yangpu District People's Procuratorate for review and prosecution. During the review, Zhang Moumou voluntarily confessed to the crime and expressed willingness to compensate the copyright holders for their losses. The procuratorial organ actively facilitated communication between Zhang Moumou and the copyright holders of the 8 films. Ultimately, Zhang Moumou reached settlement agreements with all copyright holders, compensating them a total of 350,000 RMB and obtaining their forgiveness. On June 10, 2022, the Yangpu District People's Procuratorate filed a public prosecution against Zhang Moumou. Considering Zhang Moumou's voluntary confession, active compensation, and obtaining forgiveness, the procuratorate proposed a lenient sentence recommendation. On July 15, 2022, the Yangpu District People's Court adopted the procuratorate's recommendation and sentenced Zhang Moumou to one year and six months in prison, suspended for two years, and fined him 150,000 RMB. Zhang Moumou did not appeal, and the verdict became effective.

Procurators review electronic evidence.

Procurators verify the infringing websites and apps.

**Typical Significance:**

(1) Strengthen the protection of film copyrights and promote the high-quality development of the film industry. Film works are crucial cultural products. Procuratorial organs should severely punish crimes involving the infringement of film copyrights, effectively safeguard the legitimate rights and interests of copyright holders, purify the market environment, and provide strong judicial guarantees for the prosperity and development of the film industry.

(2) Adhere to the principle of coordinated recovery and punishment, striving for optimal case outcomes. For copyright infringement cases involving both criminal and civil aspects, procuratorial organs should implement the concept of restorative justice. While punishing crimes according to law, they should actively promote reconciliation and settlement between the parties, urge infringers to compensate for losses, effectively resolve conflicts, maximize the protection of copyright holders' rights, and achieve the unity of legal, social, and political effects.

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Case 3:  3: Case of Counterfeiting Registered Trademarks by Shanghai Kaimou Industrial Co., Ltd. and Others

**Keywords:** Counterfeiting Registered Trademarks | Unit Crime | Identification of Counterfeit Goods | Co

mprehensive Protection

**Summary:** In handling cases of counterfeiting registered trademarks, procuratorial organs should accurately identify the nature of the crime, distinguishing between unit crime and individual crime. They should strengthen the examination of evidence regarding the quantity and value of counterfeit goods, accurately determining the amount involved. They should also enhance communication and coordination with administrative organs and industry associations, forming a concerted effort to protect intellectual property rights.

**Basic Facts:** From 2018 to 2021, Shanghai Kaimou Industrial Co., Ltd. (hereinafter referred to as Kaimou Company), without authorization from the trademark holder, commissioned others to produce counterfeit "3M" brand masks and packaging materials. They then organized employees, including defendants Ding Moujia and Ding Mouyi, to assemble and package these counterfeit masks, selling them through online stores and other channels. The total sales amount exceeded 10 million RMB.

**Procuratorial Performance:** On April 20, 2021, the Shanghai Municipal Public Security Bureau's Pudong New Area Branch transferred the case involving Ding Moujia and Ding Mouyi for review and prosecution. The Pudong New Area People's Procuratorate determined that Kaimou Company's actions constituted unit crime and subsequently added Kaimou Company and its legal representative, defendant Wang Mou, as defendants. During the review, the procuratorate strengthened the examination of evidence related to the quantity and value of the counterfeit masks, accurately calculating the illegal gains. On September 29, 2021, the Pudong New Area People's Procuratorate filed a public prosecution against Kaimou Company, Wang Mou, Ding Moujia, and Ding Mouyi. On December 15, 2021, the Pudong New Area People's Court sentenced Kaimou Company to a fine of 5 million RMB; Wang Mou to four years and six months in prison and a fine of 500,000 RMB; Ding Moujia to three years and six months in prison and a fine of 300,000 RMB; and Ding Mouyi to three years in prison and a fine of 200,000 RMB. The defendants did not appeal, and the verdict became effective.

Procurators inspect the seized counterfeit masks.

Procurators participate in the destruction of counterfeit goods.

During the case handling, the procuratorial organ discovered clues related to the production of counterfeit packaging materials and transferred them to the public security organ for investigation. They also issued procuratorial suggestions to the relevant administrative departments, recommending strengthening market supervision and rectifying industry chaos. The relevant departments actively adopted the suggestions and carried out special rectification actions.

**Typical Significance:**

(1) Accurately identify the nature of the crime and ensure full accountability. For crimes of counterfeiting registered trademarks committed in the name of a unit and for its benefit, it should be recognized as a unit crime, and both the unit and the directly responsible personnel should be held criminally liable to ensure that the punishment covers the entire scope of the crime.

(2) Strengthen evidence examination and accurately determine the amount involved. The quantity and value of counterfeit goods are crucial factors in determining the sentence. Procuratorial organs should strengthen the examination of evidence such as sales records, warehouse receipts, and financial accounts, accurately calculate the amount involved, and provide a solid factual basis for sentencing.

(3) Enhance coordination and collaboration, forming a concerted protection effort. Procuratorial organs should strengthen communication and coordination with public security organs, administrative law enforcement departments, and industry associations. They should promptly transfer crime clues, issue procuratorial suggestions, promote source governance, and form a joint force for intellectual property protection.

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Case 4:  4: Case of Selling Goods with Counterfeit Registered Trademarks by Wang Moumou and Others

**Keywords:** Selling Goods with Counterfeit Registered Trademarks | Live Streaming Sales | Amount Determination | Integrated Performance of Duties

**Summary:** For crimes involving the sale of goods with counterfeit registered trademarks through live streaming platforms, procuratorial organs should accurately determine the nature of the crime and the amount involved based on the characteristics of live streaming sales. They should strengthen the comprehensive performance of duties, address related civil infringement issues while handling criminal cases, promote the resolution of conflicts, and maximize the protection of rights holders' interests.

**Basic Facts:** From March 2020 to January 2021, defendants Wang Moumou, Chen Mou, and others purchased counterfeit "CHANEL," "DIOR," and other luxury brand goods. They then used live streaming platforms to promote and sell these counterfeit goods, falsely claiming they were genuine products obtained through special channels. The total sales amount exceeded 3 million RMB.

**Procuratorial Performance:** On March 5, 2021, the Hangzhou Municipal Public Security Bureau's Binjiang District Branch transferred the case to the Binjiang District People's Procuratorate for review and prosecution. During the review, the procuratorate discovered that the case involved multiple luxury brands and complex sales channels. They strengthened the examination of evidence related to the authenticity of the goods and the sales amount, accurately determining the nature of the crime and the amount involved. On June 20, 2021, the Binjiang District People's Procuratorate filed a public prosecution against Wang Moumou, Chen Mou, and others. On September 10, 2021, the Binjiang District People's Court sentenced Wang Moumou to three years in prison and fined him 300,000 RMB; Chen Mou to two years in prison and fined him 200,000 RMB. The defendants did not appeal, and the verdict became effective.

Procurators conduct on-site inspection.

During the case handling, the procuratorial organ discovered that the case involved civil infringement issues. They actively guided the rights holders to file civil lawsuits, seeking compensation for economic losses. Ultimately, the rights holders obtained compensation totaling 1.5 million RMB through civil litigation.

**Typical Significance:**

(1) Accurately determine the nature of the crime and the amount involved based on the characteristics of live streaming sales. Live streaming sales have unique features such as real-time interaction, wide coverage, and fast transaction speed. Procuratorial organs should fully consider these characteristics, strengthen the examination of evidence related to the authenticity of goods and sales amount, accurately determine the nature of the crime and the amount involved, and ensure precise punishment.

(2) Strengthen the comprehensive performance of duties and maximize the protection of rights holders' interests. Procuratorial organs should not only focus on criminal punishment but also pay attention to related civil infringement issues. They should actively guide rights holders to file civil lawsuits, seek compensation for economic losses, promote the resolution of conflicts, and maximize the protection of rights holders' interests.

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Case 5:  5: Li Mouwei and Others Counterfeiting Registered Trademarks and Selling Counterfeit Registered Trademark Goods Case

**Keywords:** Counterfeiting Registered Tr

ademarks | Selling Counterfeit Registered Trademark Goods | Full Chain Crackdown | Differentiated Punishment

**Summary:** In handling cases of counterfeiting registered trademarks and selling counterfeit registered trademark goods, procuratorial organs should accurately identify the source of counterfeit goods, implement full chain crackdown, and strictly distinguish the behavior and responsibility of the involved persons. They should adhere to the principle of "one case, four investigations," comprehensively perform intellectual property prosecution duties, and promote the resolution of both symptoms and root causes.

**Basic Facts:** From January 2022 to July 2023, defendant Li Mouwei and others, without authorization from the trademark holder, produced and sold counterfeit "Moutai" and other famous brand liquor. Li Mouwei was responsible for organizing production, while other defendants were involved in different aspects such as providing packaging materials, production, transportation, and sales. The total amount involved exceeded 5 million RMB.

**Procuratorial Performance:** On July 5, 2023, the Yicheng Public Security Branch transferred the case of Li Mouwei, Liu Mou, and others suspected of counterfeiting registered trademarks, selling counterfeit registered trademark goods, and selling illegally manufactured registered trademark logos to the Yicheng District People's Procuratorate for review and prosecution. On December 18, 2023, the Yicheng District People's Procuratorate transferred the case to the Zaozhuang City Central District People's Procuratorate (hereinafter referred to as the Central District Procuratorate) for review and prosecution. The procuratorial organ mainly carried out the following work:

First, precisely pursuing missed criminals, achieving full chain crackdown. Strictly reviewing sales records, WeChat chat records, WeChat and Alipay transfer records, and other objective evidence, after sorting, it was discovered that Luo Mou was not the source supplier of counterfeit registered trademark logos. The procuratorate suggested that the public security organ continue to dig deeper from various aspects such as the source, printing, transportation, and storage of the logos with Luo Mou as the main line, successfully pursuing Luo Mou's upstream supplier Xu Mouming and others, involving 9 personnel providing packaging materials, with an amount of approximately 5.035 million RMB. Ultimately, Xu Mouming and others were sentenced to prison terms ranging from six months to three years for selling illegally manufactured registered trademark logos.

Second, strictly distinguishing the behavior and responsibility of the involved persons. Based on accurately determining the crime amount, fully considering factors such as the position of each suspect in the counterfeiting and selling chain, the type of counterfeit products, the sales quantity and amount, and prior criminal records, the procuratorate filed a public prosecution against the source of counterfeiting, Li Mouwei, who played a major role and committed crimes again during bail pending trial, and proposed a relatively severe sentencing recommendation. For workers like Zhang Mouli and others who were instructed to help with production and packaging, as well as courier employee Chen Mou, comprehensively considering their degree of participation, role position, illegal gains, confession attitude, and other factors, they were legally identified as accomplices, and lenient sentencing recommendations were proposed. All 8 defendants voluntarily confessed to their crimes and accepted punishment, actively returning illegal gains of more than 300,000 RMB. During this period, the procuratorial organ also legally made non-prosecution decisions for downstream sales personnel Yuan Mou, worker Zheng Mouming, and others, totaling 4 people, who had minor criminal circumstances, voluntarily confessed to their crimes and accepted punishment, and were identified as accomplices.

Third, adhering to the principle of "one case, four investigations," performing comprehensive intellectual property prosecution duties. The procuratorial organ promptly informed intellectual property rights holders of their litigation rights and obligations, legally ensuring their substantive participation in criminal proceedings. After making non-prosecution decisions for relevant involved persons, upon review, the procuratorate determined that administrative punishment was necessary for the non-prosecuted persons. They issued a procuratorial opinion to the market supervision department of Renhuai City, Guizhou Province, where the counterfeiting den was located, suggesting administrative punishment for the relevant personnel. Regarding the regulatory loopholes discovered in the liquor production, sales, and delivery industries during the case handling, the procuratorate issued procuratorial suggestions to relevant departments and enterprises, all of which have completed rectification and promptly responded.

Procurators investigate the scene of the crime.

**Typical Significance:**

(1) Implement full chain crackdown, severely punishing crimes of counterfeiting registered trademarks and selling counterfeit registered trademark goods. Procuratorial organs should strengthen the examination of evidence, accurately identify the source of counterfeit goods, implement full chain crackdown, and severely punish crimes of counterfeiting registered trademarks and selling counterfeit registered trademark goods according to law, effectively deterring related crimes.

(2) Strictly distinguish the behavior and responsibility of the involved persons, implementing differentiated punishment. Procuratorial organs should fully consider factors such as the position of each suspect in the counterfeiting and selling chain, the type of counterfeit products, the sales quantity and amount, and prior criminal records, strictly distinguish the behavior and responsibility of the involved persons, and implement differentiated punishment, ensuring that punishment is both severe and lenient as appropriate.

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(3) Adhere to the principle of "one case, four investigations," promoting the resolution of both symptoms and root causes. Procuratorial organs should not only focus on criminal punishment but also pay attention to related civil, administrative, and public interest issues. They should strengthen the comprehensive performance of duties, promote the resolution of both symptoms and root causes, and enhance the overall effectiveness of intellectual property protection.

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Case 6:  6: Wu Moufeng and Shi Mouyuan Selling Counterfeit Registered Trademark Goods Case

**Keywords:** Selling Counterfeit Registered Trademark Goods | Accurate Crime Identification | Criminal and Civil Overlap | Comprehensive Protection

**Summary:** In handling cases of selling counterfeit registered trademark goods, procuratorial organs should accurately identify the crime, strictly distinguish between selling counterfeit registered trademark goods and selling goods with counterfeit registered trademarks. They should strengthen the comprehensive performance of duties, address related civil infringement issues while handling criminal cases, promote the resolution of conflicts, and maximize the protection of rights holders' interests.

**Basic Facts:** From January 2021 to March 2022, defendants Wu Moufeng and Shi Mouyuan, without authorization from the trademark holder, purchased counterfeit "LV," "GUCCI," and other luxury brand goods from various channels and sold them through WeChat and other platforms, falsely claiming they were genuine products. The total sales amount exceeded 2 million RMB.

**Procuratorial Performance:** On April 10, 2022, the Guangzhou Municipal Public Security Bureau's Tianhe District Branch transferred the case to the Tianhe District People's Procuratorate for review and prosecution. During the review, the procuratorate discovered that the case involved multiple luxury brands and complex sales channels. They strengthened the examination of evidence related to the authenticity of the goods and the sales amount, accurately determining the nature of the crime and the amount involved. On July 15, 2022, the Tianhe District People's Procuratorate filed a public prosecution against Wu Moufeng and Shi Mouyuan. On October 20, 2022, the Tianhe District People's Court sentenced Wu Moufeng to two years and six months in prison and fined him 250,000 RMB; Shi Mouyuan to two years in prison and fined him 200,000 RMB. The defendants did not appeal, and the verdict became effective.

Procurators examine the seized counterfeit goods.

During the case handling, the procuratorial organ discovered that the case involved civil infringement issues. They actively guided the rights holders to file civil lawsuits, seeking compensation for economic losses. Ultimately, the rights holders obtained compensation totaling 1 million RMB through civil litigation.

**Typical Significance:**

(1) Accurately identify the crime, strictly distinguishing between selling counterfeit registered trademark goods and selling goods with counterfeit registered trademarks. The two crimes have different constitutive elements and sentencing standards. Procuratorial organs should strengthen the examination of evidence, accurately identify the nature of the crime, and ensure precise punishment.

(2) Strengthen the comprehensive performance of duties and maximize the protection of rights holders' interests. Procuratorial organs should not only focus on criminal punishment but also pay attention to related civil infringement issues. They should actively guide rights holders to file civil lawsuits, seek compensation for economic losses, promote the resolution of conflicts, and maximize the protection of rights holders' interests.

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Case 7:  7: Case of False Litigation and Forgery of Company Seals by Chen Mou and Others

**Keywords:** False Litigation | Forgery of Company Seals | Civil Supervision | Comprehensive Performance of Duties

**Summary:** In handling cases of false litigation and forgery of company seals in the field of intellectual property, procuratorial organs should strengthen the examination of evidence, accurately identify the nature of the crime, and severely punish such crimes according to law. They should strengthen civil supervision, promptly correct erroneous civil judgments, and protect the legitimate rights and interests of the parties involved.

**Basic Facts:** From August 2023 to May 2024, defendant Chen Mou, in collusion with defendants Li Moujie and Zhang Mouchuang, fabricated false authorization documents and forged company seals, falsely claiming to have the screening rights for films such as "Cold Crow's Greeting," "Martial Arts Talk," and "Thousand Techniques 3: Battle in Macau." They then filed copyright infringement lawsuits against multiple defendants, seeking compensation and causing damage to the legitimate rights and interests of the defendants.

**Procuratorial Performance:** In August 2023, the Keqiao District People's Procuratorate (hereinafter referred to as Keqiao Procuratorate) initiated civil supervision procedures ex officio, believing that the plaintiff Sheng Mou Company claimed that its rights to the films "Cold Crow's Greeting," "Martial Arts Talk," and "Thousand Techniques 3: Battle in Macau" originated from the authorization of Ju Mou Company, but Ju Mou Company had not obtained authorization from Ao Mou Company. Therefore, Sheng Mou Company also had no legal authorization and no right to file copyright infringement lawsuits for the involved films. The procuratorate issued 8 retrial procuratorial suggestions to the Keqiao District People's Court, all of which were adopted, and the judgments were reversed upon retrial. Under the unified guidance and centralized assignment of the Zhejiang Provincial People's Procuratorate, procuratorial organs across the province issued appeals and retrial procuratorial suggestions to courts regarding 28 related civil cases, of which 22 have been reversed upon retrial, and 4 have been ruled for retrial.

From August 2023 to May 2024, the Keqiao Procuratorate legally transferred suspects of false litigation and forgery of company seals discovered during the handling of the aforementioned civil supervision cases to the public security organ for investigation. From July to October 2024, the Keqiao Procuratorate filed public prosecutions against defendant Chen Mou for false litigation and against defendants Li Moujie and Zhang Mouchuang for forgery of company seals. The Keqiao District People's Court adopted the procuratorial organ's prosecution opinions and sentencing recommendations, sentencing defendant Chen Mou to three years in prison and a fine of 20,000 RMB for false litigation; sentencing defendants Zhang Mouchuang and Li Moujie to seven months and five months in prison respectively for forgery of company seals, both with probation, and fines. The three defendants did not appeal, and the verdicts became effective.

**Typical Significance:**

(1) Fabricating film screening rights and seeking improper benefits through filed infringement lawsuits constitutes false litigation, which procuratorial organs should legally supervise. When knowing that the film producer has not granted screening rights, but still fabricating a false "Authorization Letter" claiming to have screening rights, subsequently registering the work, and seeking improper benefits through filing copyright infringement lawsuits, this constitutes false litigation. When handling supervision cases for copyright infringement disputes involving film and video works, procuratorial organs should not only review the "Authorization Letter" but also comprehensively investigate and verify the copyright ownership transfer process, investigate and verify whether the authorization was legally and validly obtained, the nature of the granted rights and the authorization period, etc., comprehensively judging whether there are instances of seeking rights through fabricated "Authorization Letters," and whether there are clues to crimes such as false litigation and forgery of company seals.

(2) Empower legal supervision with big data, actively promote digital prosecution, and precisely identify false litigation in intellectual property. False litigation in intellectual property has strong concealment, and many defendants in civil cases have limited ability to provide evidence and energy, making it difficult to effectively identify and provide counter-evidence. Procuratorial organs should fully pay attention to clues of false litigation in intellectual property, actively promote digital prosecution, and establish legal supervision models through data analysis. On one hand, strengthen the review of abnormal data traces, use big data search to discover high-frequency, large-scale abnormal litigation, and identify clues of false litigation from them. On the other hand, construct legal supervision models, analyze and judge elements such as the plaintiff's litigation requests, source of rights evidence, and evidence collection methods from aspects such as enterprise registration information, tax judgment document data, and case file materials, precisely identifying false litigation in film and video works copyright.

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(3) Comprehensively perform intellectual property prosecution functions, legally punish false litigation in intellectual property, and achieve precise supervision without wrongful convictions or omissions. Procuratorial organs should fully use the right to investigate and verify, clarify case facts, establish a solid evidence system, and promote the comprehensive performance of intellectual property civil and criminal prosecution. While supervising and correcting erroneous civil judgments, they should transfer crime clues, urge in-depth investigation of crimes, enhance deterrence effects, and protect the legitimate rights and interests of business entities.

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Case 8:  8: Hao Mouwang Infringing Trade Secrets Case

**Keywords:** Infringing Trade Secrets | Thesis Publica

tion | Loss Amount Determination | Social Governance

**Summary:** In handling cases of infringing trade secrets, procuratorial organs should accurately identify the act of infringing trade secrets and the loss amount, severely punishing such crimes according to law. They should deepen integration into social governance, assist high-quality development with high-quality procuratorial performance, and promote the innovation and development of enterprises.

**Basic Facts:** Ximou Railway Electronics Co., Ltd. (hereinafter referred to as Ximou Company) was established in 2007 and is a high-tech enterprise primarily engaged in the manufacturing of railway, ship, aerospace, and other transportation equipment. In 2016, Ximou Company initiated the "Certain Rail Vehicle Operation Control System Equipment" research project and developed it jointly with other units. According to the agreement, the related technical information and achievements formed during the research and development process were protected as trade secrets by Ximou Company. Ximou Company adopted corresponding confidentiality measures, including formulating confidentiality systems, signing confidentiality agreements with employees, internal and external network physical isolation, prohibiting carrying mobile phones into R&D sites, and other confidentiality measures.

From June 2015 to December 2018, defendant Hao Mouwang worked as a software engineer at Ximou Company, participating in the research and development of the company's "Certain Rail Vehicle Operation Control System Equipment" project. Hao Mouwang violated the company's confidentiality regulations by taking photos with his mobile phone, using USB drives, etc., during non-working hours to illegally obtain the project's design documents, key technical parameters, and other content related to the "Certain Rail Vehicle Onboard Control System Design and Implementation" for his master's thesis. From January 2020 to August, Hao Mouwang published his thesis on platforms like CNKI and Wanfang Data, which was viewed by many people. Downloading this thesis led to the public disclosure of Ximou Company's research project-related technical secrets, rendering the patent application based on this technology unsuccessful.

After assessment, the relevant technical information of the "Certain Rail Vehicle Operation Control System Equipment" claimed by Ximou Company is non-public information. The technical information disclosed in Hao Mouwang's thesis is substantially identical to the aforementioned trade secrets. According to accounting confirmation, from 2017 to 2019, Ximou Company's total R&D expenses for the involved technology amounted to 2.18 million RMB.

**Procuratorial Performance:** In December 2020, the Yanta District People's Procuratorate of Xi'an City, Shaanxi Province (hereinafter referred to as Yanta Procuratorate) received case clues reported by Ximou Company, conducted a preliminary investigation, and suggested that Ximou Company report the case to the High-tech Branch of the Xi'an Municipal Public Security Bureau (hereinafter referred to as High-tech Public Security Branch). Due to the public security organ's decision not to open a case, the Yanta Procuratorate initiated supervision procedures for case opening and cooperation mechanisms in December 2020. On December 21, 2020, the public security organ issued a "Notice of Case Opening." After the case was opened, the Yanta Procuratorate strengthened investigation supervision and cooperation, guiding the public security organ to focus on the following key tasks: First, determining the non-public nature of the trade secret and the consistency between the suspected infringing thesis content and the trade secret through judicial appraisal. Second, investigating the circumstances under which the trade secret was disclosed after being made public, the loss of commercial value of the trade secret, and the causal link. Third, investigating Hao Mouwang's subjective intent and the specific acts of illegally obtaining the trade secret, strengthening the collection, fixation, and application of electronic evidence.

Procurators investigate the enterprise involved.

On December 6, 2023, the High-tech Public Security Branch transferred the case involving suspect Hao Mouwang suspected of infringing trade secrets to the Yanta Procuratorate for review and prosecution. The procuratorial organ focused on the following key tasks during the review and prosecution stage: First, legally identifying the rights holder's relevant technical information claimed by Ximou Company as trade secrets. Based on the confidentiality agreement signed by Ximou Company during research and development cooperation and the corresponding confidentiality measures taken, determining that the involved technical information belongs to trade secrets. Second, combining the investigation evidence to determine the nature of Hao Mouwang's actions. Hao Mouwang illegally obtained the "Certain Rail Vehicle Operation Control System Equipment" project's design documents, key technical parameters, etc., through photographing with his mobile phone, using USB drives, etc., and used them in his master's thesis, publishing it online, leading to the public disclosure of the trade secret. This act belongs to the behavior of disclosing trade secrets obtained through improper means. Third, accurately determining the loss amount caused by the infringement. Hao Mouwang's disclosure behavior caused the trade secret to become publicly known, losing its market value and exchangeability. According to the relevant provisions of judicial interpretation, the loss amount can be comprehensively determined based on factors such as the research and development costs of the trade secret and the benefits derived from implementing the trade secret. Combining the facts of this case and relevant evidence, the R&D cost of 2.18 million RMB confirmed by accounting was used as the standard for determining the loss amount. Fourth, legally identifying Hao Mouwang's voluntary confession. Through legal interpretation and reasoning, urging the suspect to confess voluntarily and actively compensate for economic losses, obtaining forgiveness from Ximou Company.

On May 24, 2024, the Yanta Procuratorate filed a public prosecution against Hao Mouwang for infringing trade secrets. On July 22, the Yanta District People's Court of Xi'an City sentenced defendant Hao Mouwang to one year in prison for infringing trade secrets and fined him 20,000 RMB. Hao Mouwang did not appeal, and the verdict became effective. After the verdict, the Yanta Procuratorate issued procuratorial suggestions to Ximou Company, carried out legal education multiple times, assisted the enterprise in strengthening intellectual property protection, enhancing the enterprise's core competitiveness. Ximou Company's technology, which was infringed upon, has been improved and upgraded, successfully applying for invention patents.

**Typical Significance:**

(1) Accurately identify the act of infringing trade secrets and the loss amount, severely combating crimes of infringing trade secrets. Hao Mouwang, as an employee of the enterprise, violated confidentiality regulations, obtained trade secrets through improper means, and used them in his thesis for public publication, which is objectively illegal. Although there is no direct profit, objectively it caused the trade secret to be publicly disclosed, technical information leaked, and commercial value damaged. His behavior has constituted the crime of infringing trade secrets. Procuratorial organs should strengthen investigation supervision, propose investigation directions, focus on key points such as the non-public nature of the trade secret, confidentiality measures, consistency, and loss amount, guide the collection of evidence, accurately identify the nature of the crime and the amount involved, legally severely punish such crimes, providing beneficial references for similar cases.

(2) Deepen integration into social governance, assisting high-quality development with high-quality procuratorial performance. This case is a typical case where the procuratorial organ received clues from enterprises during its work and initiated supervision for case opening. It established a "procurator + enterprise" intellectual property professional specialization team, deepened the application of intellectual property procuratorial functions, mechanisms, concepts, and team specialization construction, established a solid foundation for procuratorial performance based on handling cases, extended procuratorial suggestions through handling cases, carried out legal education and other methods, promoted social governance, assisted Ximou Company in improving its intellectual property protection system, enhanced the risk prevention capabilities of innovation entities, and stimulated the innovation vitality of enterprises.

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Case 9:  9: Administrative Public Interest Litigation Case Concerning the Protection of "Xuxiu" Intellectual Property Rights

**Keywords:** Administrative Public Interest Litigation | "Xuxiu" Intangible Cultural Heritage | Geogr

aphical Indication

**Summary:** Procuratorial organs should fully leverage the functions of administrative public interest litigation and government-procuratorate linkage mechanisms. Targeting issues such as inadequate protection of intangible cultural heritage and geographical indications like "Xuxiu" leading to public interest damage, they should urge relevant administrative organs to perform their duties according to law through negotiation, issuing procuratorial suggestions, etc., strengthen the comprehensive protection of intellectual property rights in traditional cultural fields.

**Basic Facts:** Xuxiu embroidery, with dual attributes of national intangible cultural heritage and national geographical indication protected product, is a treasure of traditional Chinese embroidery craftsmanship. In April 2024, multiple Xuxiu embroidery merchants reported through the "Yunshang Zhi Jian" WeChat mini-program to the Longting District Procuratorate Intellectual Property Comprehensive Protection Center in Kaifeng City, Henan Province (hereinafter referred to as Longting Procuratorate Protection Center) that the Xuxiu embroidery products market was chaotic, intellectual property rights infringement was rampant, the Xuxiu embroidery industry faced issues like mixed use of geographical indications and inadequate regulatory oversight, leading to the continuous decline of the "Xuxiu" brand value, hindering the inheritance of Xuxiu embroidery skills, severely affecting the development of the Xuxiu embroidery industry and the inheritance of intangible cultural heritage, causing damage to social public interests.

**Procuratorial Performance:** In April 2024, the Longting Procuratorate Protection Center conducted investigations into the protection and utilization of the "Xuxiu" geographical indication. Visiting multiple Xuxiu embroidery merchants revealed potential or existing misuse of the "Xuxiu" geographical indication. Subsequently, the Longting District Market Supervision Bureau, Culture and Tourism Bureau, and other departments conducted joint investigations into the current status of the Xuxiu embroidery market and the purification of the Xuxiu embroidery market environment, reaching a consensus on the importance of protecting the "Xuxiu" geographical indication. On April 23, 2024, the Longting District Procuratorate opened an administrative public interest litigation case regarding the protection of "Xuxiu" geographical indication intellectual property rights.

After opening the case, the Longting Procuratorate conducted further investigation and verification. Through field visits, symposium discussions, and consulting experts, they fully understood the current situation of the protection and utilization of the "Xuxiu" geographical indication, clarified the responsibilities of relevant administrative organs in protecting the "Xuxiu" geographical indication. On May 10, 2024, the Longting Procuratorate held a public hearing, inviting representatives from the Municipal Market Supervision Bureau, District Market Supervision Bureau, District Culture and Tourism Bureau, Xuxiu embroidery intangible cultural heritage inheritors, Xuxiu embroidery enterprise representatives, and lawyers to participate. The hearing reached a consensus on strengthening the protection of the "Xuxiu" geographical indication and promoting the development of the Xuxiu embroidery industry. On May 15, 2024, the Longting Procuratorate issued procuratorial suggestions to the Longting District Market Supervision Bureau and the Longting District Culture and Tourism Bureau respectively, suggesting strengthening the supervision of the use of the "Xuxiu" geographical indication, regulating market order, increasing publicity efforts, enhancing public awareness of intellectual property protection, supporting the inheritance and development of Xuxiu embroidery skills, and promoting the revitalization of traditional crafts.

After receiving the procuratorial suggestions, the Longting District Market Supervision Bureau and the Longting District Culture and Tourism Bureau attached great importance to them, formulated rectification plans, and actively performed their duties. They carried out special rectification actions for the Xuxiu embroidery market, investigated and dealt with illegal acts involving infringement of the "Xuxiu" geographical indication, strengthened publicity and education, guided enterprises to use geographical indications in a standardized manner, supported the training of Xuxiu embroidery talents, and promoted the innovative development of the Xuxiu embroidery industry. Currently, the rectification work has achieved initial results, the Xuxiu embroidery market order has significantly improved, and the protection awareness of relevant enterprises and the public has been enhanced.

**Typical Significance:**

(1) Fully leverage the function of administrative public interest litigation, promoting administration by administrative organs according to law. Intangible cultural heritage and geographical indications are important intellectual property rights. Procuratorial organs should focus on public interest damage issues such as inadequate protection of intangible cultural heritage and geographical indications, actively and steadily carry out administrative public interest litigation work, urge relevant administrative organs to perform their duties according to law, strengthen the protection of intellectual property rights in traditional cultural fields, and promote the inheritance and development of excellent traditional culture.

(2) Strengthen coordination and linkage, forming a joint force for protection. The protection of intangible cultural heritage and geographical indications involves multiple departments and requires collaborative efforts. Procuratorial organs should strengthen communication and coordination with administrative organs such as market supervision and culture and tourism, establish and improve information sharing, case transfer, and joint law enforcement mechanisms, leverage the advantages of government-procuratorate linkage mechanisms, form a joint force for protection, and enhance the overall effectiveness of intellectual property protection.

(3) Adhere to handling cases based on law and evidence, ensuring case quality and effectiveness. Procuratorial organs should strictly follow legal procedures when handling administrative public interest litigation cases, strengthen investigation and verification, fully collect and fix evidence, accurately identify illegal facts and responsible entities, ensure that the facts are clear, the evidence is sufficient, and the applicable law is correct. They should adhere to resolving substantive disputes, promote practical problem-solving through case handling, achieve the goal of handling one case, governing one area, and benefiting one party, and continuously enhance the people's sense of gain, happiness, and security.

本文由AI辅助翻译

This article was translated with AI assistance.