Fake Scotch

The Scotch Whisky Association (SWA) has won a legal battle in China against a company producing fraudulent packaging.

Anhui Guangyu Packaging Technology Company had been manufacturing bottle caps carrying the words ‘Scotch Whisky’, which were then used on bottles of fake Scotch that was sold in Myanmar. The SWA sued Anhui Guangyu and its director at the Anqing Intermediate People’s Court in Eastern China for infringing its intellectual property. The court upheld the complaint and ordered Anhui Guangyu to cease production and pay damages and costs.

SWA said the case was unprecedented in three ways: it was the first such decision it had achieved in the Chinese civil courts, as opposed to through administrative procedures, an alternative avenue with lesser penalties; it was the first case of the SWA disrupting a cross-border supply chain, with previous cases restricted to China; and it was the first time the association had taken on a packaging manufacturer without needing to demonstrate its bottles actually contained fake Scotch.

“This victory in the Chinese civil court is significant for a number of reasons and should be seen as a legal breakthrough,” said SWA senior legal counsel Lindesay Low. “We are confident this will help deter other potential counterfeiters and fraudsters in China.

“Now that the appeal period has expired and the judgment has become final, we are focusing on enforcing the award of damages. There is also a possible criminal case against the director of Anhui Guangyu Packaging Technology Company and discussions are ongoing with the public prosecutor.”

Earlier this week, SWA took a major step in extending the global protection of Scotch when it signed a deal with the Organisation Africaine de la Propriété Intellectuelle (OAPI). The 17 member body covers more than a fifth of the area of Africa and has a total population of more than 150 million people. Scotch exports to OAPI countries rose from £5m to £13.6m between 2005 and 2014, SWA said.

Two weeks ago, SWA became the first UK group to join the Organisation for an International Geographical Indications Network (Origin). Origin campaigns globally to improve protection for geographical indications.

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