The infringer has been ordered to pay significant damages and cease all illegal activity
On 31 December 2025, the Supreme People’s Court upheld the decision made by the Qingdao Intermediate People’s Court, setting a strong judicial precedent for the handling of similar disputes in China.
Following its previous success at the Supreme People’s Court, Lusheng - Rouse’s strategic partner in China, has secured a second victory for ENZAFruit New Zealand International Limited (“ENZAFruit”), a subsidiary of T&G Global Limited. This latest case involved a Chinese defendant who was illegally propagating and producing the Scilate apple variety, known under the trademarks ENVY® /爱妃®, and selling the harvested material from the illegal propagation. This is a milestone victory for ENZAFruit, which sought to protect its plant variety rights (PVR) in Shandong, China’s main apple-growing region. It upholds the decision made by the Qingdao Intermediate People’s Court in April 2025.
The defendant had produced and propagated Scilate variety propagating materials and sold the infringing harvest materials through online and offline channels. And, despite adopting a different name for the infringing products, it deliberately used marks similar to T&G’s well-known trademarks, ENVY®/爱妃®, for promotional purposes during the sales process, attempting to take advantage of Scilate’s business reputation and to seek unlawful gains.
Taking into account the scale and intention of the infringer, the court ordered the defendant to pay significant damages to ENZAFruit. The defendant was also ordered to cease producing and propagating Scilate variety propagation materials, stop selling harvested materials obtained from such propagation, and destroy the illegal propagating materials.
In this case, the Supreme People’s Court rejected the infringer’s “legal source” defence and affirmed that the infringement should be assessed holistically, with the acts of producing and propagating materials and selling harvested materials being considered and evaluated as a whole. The court also emphasised that the cell nuclei of living somatic cells in the fruits and leaves of apple trees all contain DNA, which is applicable for testing. Therefore, the use of harvested materials of the alleged infringing variety as test samples is in compliance with the Technical Code for Apple Variety Identification - SSR Molecular Marker Method. Taking the harvested materials of the alleged infringing variety as the subject of testing can greatly enhance the convenience for right holders in collecting evidence, thereby further protecting the legitimate rights and interests of variety right holders.
Gareth Edgecombe, Chief Executive at T&G added, “We welcome this ruling by the Supreme People’s Court and the commitment it shows under China’s strengthened Seed Law to safeguard plant variety rights and put a stop to illegitimate production and infringement. With it being the second ruling in T&G’s favour by China’s highest court, it establishes a strong judicial precedent for the handling of similar infringement disputes in China. The Court’s judgement and the recent Regulations on the Protection of New Plant Varieties will benefit plant breeders, growers, consumers, customers and the horticulture sector, and provide T&G with further confidence to continue investing in China, knowing our intellectual property is well protected.”
Sunny Su, a Principal at Lusheng, said, “The Supreme People’s Court’s ruling marks a pivotal moment for local and foreign agricultural brands, as it demonstrates the effectiveness of the revised Seed Law and provides confidence to businesses that their rights are supported by Chinese lawmakers. It also serves as a strong warning to the industry to strictly operate in accordance with the law. Intellectual property rights are being taken extremely seriously, and those found propagating, harvesting or selling unlawful goods will be prosecuted. Recently, a large number of illegally infringing Scilate variety fruit trees in Gansu were forcibly cut and destroyed, effectively enforcing court rulings and protecting the rights of all parties as well as social fairness and justice.”
Liping Xu, the senior litigator, said: "Infringements involving PVRs are increasingly covert, and harvested materials are an important clue for rights holders to trace the source of infringement. Since the revision of the Seed Law of the People’s Republic of China, the judicial and law enforcement authorities have made many representative penalty decisions and judgments against infringements related to the illegal harvesting of materials, extending liability from illegal propagating materials to harvested materials obtained from illegal propagation."
