Zespri wins key plant variety rights case

Decision in favor of NZ kiwifruit brand to boost foreign investor confidence

The Wuhan Intermediate People's Court has ruled in favor of New Zealand kiwifruit brand Zespri in a major plant variety rights infringement case, a landmark decision that experts say underscores China's stronger intellectual property protection enforcement and expected to boost foreign investor confidence.

The court issued its judgment in Zespri's plant variety rights infringement case, filed in 2023, against two defendants involved in the unauthorized production, sale and marketing of Gold3 kiwifruit, claiming that the primary defendant infringed Zespri's IP rights through the unauthorized planting and sale of Gold3.

The infringement involved the unauthorized planting of over 200 hectares of Gold3 in China's central Hubei province, with the fruit then sold online.

Experts said the move marks a milestone in China's efforts to enhance IP protection, which will help better foster new quality productive forces and promote high-quality development.

Bai Wenxi, vice-chairman of the China Enterprise Capital Union, said the case "has become a benchmark for foreign enterprises defending plant variety rights in China, fully demonstrating the country's determination to implement China's Seed Law and strengthen IP protection in the seed industry".

Bai said the local authorities' zero-tolerance approach to infringement "will significantly boost foreign companies' confidence in bringing their latest varieties and technologies into the Chinese market".

Stronger IP protection, Bai added, serves as "the institutional infrastructure for attracting high-end factors and fostering new quality productive forces under China's dual-circulation framework".

Zespri CEO Jason Te Brake said: "This case demonstrates the increased protection for plant variety rights made possible by changes to China's Seed Law in 2022 and the strong support of local authorities in safeguarding intellectual property rights.

"It also highlights the importance of intellectual property protection in horticulture, for local and foreign companies, and the role it plays in ensuring food safety for consumers. China is an important market for Zespri, and this positive outcome will support ongoing investment to deliver high-value varieties for consumers around the world."

Wang Peng, a researcher at the Beijing Academy of Social Sciences, said the case "demonstrates the judicial system's equal protection of global innovation achievements and breaks the long-held perception that foreign firms face difficulties defending their rights in China".

"The outcome suggests that China's IP protection has shifted from policy declarations to substantive enforcement," Wang said. "High compensation and efficient execution by local courts address foreign investors' key concerns about law enforcement and damages."

The court has ordered the defendant to remove the 260 hectares of unauthorized cropland and pay compensation to Zespri of around 5.25 million yuan ($739,515).

"This undoubtedly enhances China's attractiveness as an investment destination," said independent economist Yu Fenghui. "Strong IP protection is the foundation for innovation and technological progress. For foreign enterprises, it ensures that research and investment in China is rewarded, encouraging more technology transfer and cooperation."

Gao Chengyuan, CEO of Guangzhou TY Marketing, said: "Intellectual property is the conversion valve of new quality productive forces. When infringement costs nothing, no one dares to innovate, but when infringement is costly, capital dares to invest, researchers dare to create and data dares to flow."

Zhang Yue, chairman of Ao Yo International, a Beijing-based integrated marketing company, said the case "sets a typical benchmark for IP protection in agriculture, helping boost enterprises' confidence and encouraging greater investment in R&D".

"Enhancing IP protection is a key guarantee to encourage innovation," Zhang said. "It attracts more foreign enterprises to invest in China while maintaining fair market competition and protecting consumer rights."

Citing official data, Zhang said China's public satisfaction with IP protection reached a record 82.36 points in 2024, with courts and regulators handling hundreds of thousands of IP cases.

Zhang suggested further strengthening international cooperation and public education on IP protection and improving diversified dispute resolution mechanisms to reduce litigation costs and raise efficiency. (Source from China daily)