Case brief:

The agricultural association of the Pudong New Area of Shanghai has the collective trademark label for geographical indication No.18311939 for its locally produced watermelons. 

Under the Nanhui 8424 Watermelon Standard of Shanghai (T/31PDNXH101-2017), only a watermelon produced according to Nanhui 8424 watermelon production technical specifications – authorized by the Pudong agricultural association – can use the GI collective trademark label.

On July 12, 2021, law enforcement officers from the Putuo district market supervision administration found that the so-called Nanhui 8424 watermelons being sold in the supermarket Carrefour were not authentic Nanhui 8424 watermelons. 

The investigation found that the supplier of the watermelons involved was Shanghai Guopin Distribution Co Ltd, which commissioned a batch of unidentified watermelons from Jiangsu and Henan provinces and pasted labels containing the Chinese words "Nanhui 8424 watermelon" on the products, delivering them to Carrefour. The watermelons, totaling 42,060 kilograms, generated suspected illegal business of 134,592 yuan ($20,372).

Putuo district market supervision administration believed that Shanghai Guopin Distribution, without the consent of the holder, used the markings similar to the geographical indication No.18311939 on non-Nanhui produced watermelons. The behavior constituted confusion of approximate infringement. The defendant was ordered to immediately cease the infringement and was fined 403,776 yuan. 

Significance:

Geographical indications can be strengthened by registering as collective trademarks or certifying trademarks, to obtain the exclusive rights of registered trademarks. The handling of the case reflected the initiative of Shanghai's law enforcement departments in the protection of GIs and provides a legal reference for similar cases.