According to reports from the Shanghai Third Intermediate People's Court (hereinafter the "Shanghai Court"), a final ruling was issued on September 23, 2025, in a case involving the counterfeit use of the "DIOR" registered service trademark. The Shanghai Court upheld the original decision, sentencing the main defendant ("Defendant A") to 3 years and 6 months in prison, along with a fine of RMB 1.6 million. The accomplice ("Defendant B") was sentenced to 1 year in prison, with 1 year of probation, and a fine of RMB 50,000.

The Shanghai Court found that from 2020 until the infringement was uncovered, Defendant A operated several companies and employed individuals like Defendant B, organising – without the authorisation of the trademark owner – children's fashion shows featuring the "DIOR" brand in cities such as Shanghai, Shenyang, and Wuhan, collecting registration fees for these events.

During this period, Defendant A and Defendant B purchased clothing in a similar style to "DIOR" and other brands through unofficial channels at low prices. Afterwards, they bought branded neck tags, care labels, and hang labels bearing the "DIOR" trademark, replacing or sewing these onto the garments to pass them off as authentic "DIOR" clothing for the children's shows. Additionally, the defendants organised several fashion shows using the "DIOR" trademark, earning illegal profits from these activities.

On December 25, 2023, the police seized counterfeit products, including clothing, neck tags, care labels, and hang tags bearing "DIOR" brand. Defendant A was arrested on December 25, 2023, and Defendant B on May 10, 2024. After the judgment in the first instance was issued, Defendant A appealed, claiming that the facts were incorrect. After reviewing the appeal, the Shanghai Court concluded that both defendants had used the "DIOR" trademark without permission in the same service area. Given the seriousness of the case, the court upheld the original judgment, which was supported by sufficient evidence.

This case follows relevant regulatory updates, such as:

(i) On March 1, 2021, the 11th Amendment to the Criminal Law revised Article 213, incorporating the counterfeiting of "service trademarks" into the crime of counterfeiting registered trademarks. The maximum sentence was increased from 7 years to 10 years;

(ii) On April 23, 2025, the Supreme People's Court and the Supreme People's Procuratorate jointly issued an interpretation on several legal issues related to intellectual property crimes, clarifying the criminal standards for counterfeiting service trademarks.

Source:
https://mp.weixin.qq.com (Chinese)