Criminal action against counterfeit pharmaceuticals network results in one of the longest jail sentences in Chi - and a QBPC Best Cases Award
This was a landmark case in criminal proceedings in China in relation to pharmaceuticals. It resulted in the destruction of a large criminal network involving local distributors and wholesalers as well as a printer and the network organiser.
Background
The case involved the infringement of intellectual property rights in pharmaceutical products of six global pharmaceutical companies.
In March 2003, a large number of counterfeit drugs were found in Yiwu , Zhejiang Province. Raids were initially carried out against local distributors and the case was then transferred to the Jinhua PSB for criminal investigation. A number of wholesalers in Hebei Province were then identified.
Criminal action against the network
In June 2003, the PSB made great efforts to overcome local interference and detained three major wholesalers in Hebei. In October 2003, the PSB conducted a further action against the network organisers and a printer in Wenzhou . Four suspects were detained and RMB 600,000 worth of counterfeit drugs and packages seized.
In January 2004, the PSB successfully located the manufacturer of the products in Shantou, Guangdong Province. The underground factory was raided and a large number of counterfeit drugs, as well as equipment, seized. Two major suspects were arrested. In June and December 2004, the suspects were subjected to criminal prosecution.
During the criminal prosecution, the brand owners engaged in intensive lobbying to encourage the PSB to take all available action, including seeking greater support from relevant foreign embassies.
Comments
This is a landmark case in criminal proceedings in relation to counterfeit drugs in China. It infiltrated a counterfeit network involving local distributors, wholesalers, printer, organisers. Arrests of 11 suspects were made and three major suspects were sentenced to 10 years imprisonment and another five for five – nine years. It involved over 151 PSB officers in four different provinces. The Ministry of Public Security treated it as top priority case for direct coordination. The client commented: “I am SO pleased that we have got this far. It's a tremendous tribute to everyone who has kept on the case in such a splendid way.”
The case also won the QBPC Best Cases Award in 2004-2005 for the outstanding result achieved.
