The Shanghai Higher People's Court issued a final judgment on December 29, 2020. It denied the defendants' appeal and upheld the original decision.
In April 2019, police confiscated tools used to replicate Lego toys and toy products, as well as toy packaging, instruction manuals and delivery orders from a rented factory. The infringing products were sold under the “LEPIN” brand. According to an assessment by the Copyright Appraisal Commission of the Copyright Protection Center of China, these toys and operating instructions were essentially identical to the Lego originals and therefore were copies of LEGO's products. Counterfeit goods worth approximately 330 million RMB were sold.
In September 2020, the Shanghai Third Intermediate Court convicted the defendants of violating LEGO's copyrights of a criminal offense. All nine of the defendants were found guilty of copyright infringement. The main culprit was sentenced to six years in prison and fined RMB 90 million for copyright infringement. The remaining eight defendants were sentenced to terms of between three years and four years and six months in prison and various fines. The court also ordered the confiscation of all unlawful proceeds from the violation and the confiscation of all infringing products and personal property of the defendants.
The defendants appealed to the Shanghai Higher Court. The court upheld the first instance judgment. The Shanghai Higher Court judged that the Lego toys were an expression of unique aesthetic appeal and embodied originality. They are also independent creations of the Lego company, and the fully assembled models fall into the category of works of art, which is protected by Chinese copyright law. The Shanghai Supreme Court also upheld the decision of the court of first instance because the violation caused serious financial, social- and cultural damage.
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