InterDigital Inc (IDCC)

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Foreign IPRs to have a chance in China?:


Lego wins landmark Chinese court victory in piracy lawsuit
By Clare MacCarthy in Copenhagen
Published: January 21 2003 4:00 / Last Updated: January 21 2003 4:00

Lego yesterday claimed a landmark victory in the war against copycat manufacturers after a Chinese toymaker was found guilty of infringing the Danish company's copyright.

Lego, renowned as a vigorous defender of its intellectual property rights, said this was the first time the Chinese legal system had delivered a judgement confirming copyright protection of industrial design and applied art.

The judgement is viewed as precedent-setting because it establishes the possibility of gaining "double protection" under China's legal system. This allows a company to register design protection and simultaneously obtain copyright protection for a product in the courts.

"This is a remarkable ruling which is sure to play an important role in the future as more and more companies have to watch copies of their products being made and sold in China," said Henrik G. Jacobsen, Lego's intellectual property lawyer.

Other legal experts, unconnected with the case, agreed that the ruling was a breakthrough. "The Chinese government has been making some strides in recognising and protecting international intellectual property rights in recent times. It is reassuring to finally see some concrete evidence that this is leading to improvements on the ground," said Richard Woulfe, a partner and IP specialist at Mason, Hayes and Curran in Dublin.

Lego began its legal action against Coko Toy Company of Tianjin in 1999 after discovering Lego-lookalike elements in a range of childrens' playsets, including castles and pirate ships.

The ruling, delivered by the Beijing High People's Court, means that Coko must halt production of the copied items and turn over the relevant moulding equipment to the authorities for destruction. It also has to publish an apology in the Beijing Daily and pay symbolic compensation.

Since Lego's eponymous interlocking bricks were patented in 1958, the company has fought court cases all over the world.

Dozens of cases against copycat producers are brought every year, Lego said yesterday. Some cases go to trial while others are settled out of court when the pirates realise the odds are against them.

However, legislation varies depending on the jurisdiction. Last month, Lego lost a case against the Canadian company Mega Bloks for copyright infringement in Switzerland.


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