China court upholds Zespri's plant variety rights, orders compensation for IP infringement

Global kiwifruit powerhouse Zespri successfully defended the intellectual property rights of New Zealand growers in China.

The Wuhan Intermediate People’s Court in China issued its decision in the company's 2023 plant variety rights infringement case, where it found the primary defendant guilty of infringing Zespri’s IP rights through the unauthorized planting and sale of Gold3 kiwifruit.

The infringement involved the unauthorized planting of over 200 hectares of Gold3 in Hubei Province, with the fruit then sold online. The court has ordered the defendant to remove over 640 acres of plant material and pay compensation to the company of over $730,000 for damages and expenses.

The court found that a second defendant sold Gold3 fruit online. However, since the fruit originated from the primary defendant, against whom the company had already filed an action, the court considered the company's rights to be sufficiently protected.

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“This case demonstrates the increased protection for plant variety rights made possible by changes to China’s Seed Law in 2022 and the strong support of local authorities in safeguarding intellectual property rights," said Zespri CEO Jason Te Brake. 

Zespri's win for NZ growers 

The executive celebrated the outcome, which he labeled as a significant win for the New Zealand industry and its partners in China. Te Brake added that the court decision also highlights the importance of intellectual property protection in horticulture for local and foreign companies, as well as its role in ensuring food safety for consumers.

“China is an important market for Zespri, and this positive outcome will support ongoing investment to deliver high-value varieties for consumers around the world,” he said.

As Zespri looks to strengthen grower value, it will continue its efforts to work with the industry to find a constructive solution to the continuing changes seen in China associated with unauthorised Gold3 plantings.  

*All images courtesy of Zespri

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