A Landmark Judgment by the Supreme People’s Court Scores A Major Victory of the Plant Variety Rights Owner assisted by Hylands Attorneys

The Supreme People’s Court (SPC) recently issued a landmark judgment in an administrative litigation involving Plant Variety Rights (PVR), upholding the administrative penalty imposed by local government authority on the infringer. A team of attorneys led by Donnie Hao Dong, Partner of Hylands Law Firm, secured the lawful rights and interests of the PVR owner in this high-profile administrative enforcement case. 

Case Background

In this case, the PVR owner (BLOOM FRESH) is a world-leading fruit breeder that holds the PVR for the “IFG Six” grape variety (marketed under the trademark “SWEET SAPPHIRE^®”) in China. This grape variety is highly sought-after globally, due to its unique appearance and superior taste. Despite its protected status, a Yunnan-based entity conducted unauthorized large-scale propagation and commercialization of the variety under the self-designated trade name “Zi Yu Tian Zhu/紫玉天珠”, constituting a significant violation of the rights owner’s intellectual property rights.

Upon receiving the complaint, the Binchuan Bureau of Agriculture and Rural Affairs acted promptly, conducting on-site investigations and formal inquiries. Following a rigorous and meticulous investigation, the authority served a “Prior Notice of Administrative Penalty” on the respondent in accordance with statutory procedures, subsequently convening an administrative hearing. After thorough consideration of the claims and defenses presented by the rights owner and respondent respectively, the authority issued a formal “Administrative Penalty Decision” in August 2023. The Decision ordered the target entity to immediately cease production of the infringing grape variety, uproot and destroy the crops of those still under cultivation, forfeit all unlawfully obtained gains, and pay a monetary fine.

Dissatisfied with the Administrative Penalty Decision, the target entity initiated administrative litigation, raising numerous claims and presenting new evidence in an attempt to vacate the penalty. In response, the authority took proactive measures by appointing local counsel specializing in agricultural and rural administrative procedures to refute the target entity’s claims. Meanwhile, the PVR owner—acting as complainant in the administrative phase and a third party in litigation—also appointed legal counsel to participate in both the administrative hearing and subsequent court proceedings.

Following the first and second instance court proceedings, the SPC issued the final administrative judgment, upholding the Kunming Intermediate Court's ruling and the Binchuan Bureau of Agriculture and Rural Affairs’ administrative penalty. This judgment confirms both the legality and rationality of the penalty, bringing closure to this multi-year infringement case.

Case Significance

The case has garnered widespread attention within the agro-forestry and fruit industries, marking a landmark in the history of administrative enforcement for PVR infringement involving “asexually reproduced crops” (such as fruits and cut flowers) in China. In addition to unequivocally affirming the legality and appropriateness of the administrative actions taken, the SPC’s final ruling served to clarify several crucial standards related to the determination of PVR infringement. Notably, the Court adopted the core legal arguments put forth by the rights owner’s legal team in multiple key parts of its decision.

“This ruling represents a decisive enforcement win and reinforces the strength of PVR protection in China,” said Josep Estiarte, CEO of BLOOM FRESH.

“We applaud the efforts of the local authorities to implement the PBR law and take action against infringements. We also applaud the SPC for uploading the decision and actions of the administrative authorities.” added Alanna Rennie, Chief Legal Officer of BLOOM FRESH. “This implementation and upholding of the law in China gives BLOOM FRESH renewed energy and confidence to continue investing in the long-term development of varieties for Chinese farms and consumers and commercialising these in China. This cements our long-term vision in China.”

The legal team representing the PVR owner was personally involved in all procedures of this case, including traveling to the site to facilitate the administrative authority’s investigation and prosecution of the case, directly representing the rights owner in the hearing procedure prior to the administrative penalty, and directly representing the rights owner in court for the administrative litigation. Furthermore, the legal team swiftly provided progress reports across time zones throughout the entire representation process and coordinated the positions of the rights owner and the administrative authority. Throughout the three-year duration of the case, our team’s involvement extended significantly beyond the courtroom. We conducted multiple in-person visits to the cultivation sites where infringement occurred, engaging extensively with both administrative authorities and local fruit growers. The team accurately conveyed the rights owner’s stance of desiring to collaborate with legal growers for mutual development, thereby preventing losses caused by unregulated infringing cultivation. This effort helped the rights owner establish a sincere and responsible image in Binchuan—a key national grape production region—and simultaneously set the stage for the rights owner’s subsequent launch of an innovative licensing scheme, earning high praise from local administrative authorities, the rights owner, and all relevant stakeholders.

About BLOOM FRESH

BLOOM FRESH International Ltd. is a world-leading premium fruit-breeding company, renowned for its innovation and commitment to sustainability. With 45 years of combined experience, BLOOM FRESH harnesses natural breeding techniques to cultivate new table grape, raisin, blueberry and cherry varieties that enhance grower productivity and consumer enjoyment.

BLOOM FRESH will continue to stamp out illegal production and propagation of IFG Six across the country and throughout the supply chain while investing to build the SWEET SAPPHIRE^® brand through world class technical, quality, commercial and marketing support.

More information can be found about BLOOM FRESH at bloomfreshglobal.com

Source: BLOOM FRESH Official WeChat Account