Treasury Wine Estates (TWE) has received important recognition from the Supreme People’s Court of the People’s Republic of China in its fight to protect its brands from counterfeiting.

The Court has selected a favourable Penfolds case for inclusion in its Reference Case Library. The library was launched in early 2024 to raise public awareness of key decisions and support academic research. To date, a very small portion of overall cases adjudicated by Chinese courts since 1995 – around 0.003% – have been selected for inclusion, with the library currently featuring less than 5000 cases.

The selected TWE case n China features the landmark 2020 infringement decision against the copycat operator PENFUNILS. In this decision, the court granted “well-known” status to Penfolds BEN FU Chinese trademark – 奔富 – the highest level of recogniƟon for a common law trade mark under China’s legal system.

The Court ruled that BEN FU had become synonymous with Penfolds wines exported to China by TWE as a result of over 20 years of continuous and significant use and investment in marketing the brand, rapid and consistent growth in sales and profits, and a comprehensive and vigorous brand protection program.

TWE Global Director of Intellectual Property Anna Olsen said: “We’re honoured by this recognition of our brand protection program and greatly appreciate the unwavering support from the Chinese authorities and industry partners over many years in protecting the rights and reputation of our brands.

“Strong mechanisms to protect intellectual property rights support a fair, transparent and supportive business environment for foreign enterprises, and gives consumers confidence in the integrity of luxury brands.”

The Court’s recognition of this copycat case’s significance follows the historic 2022 win against the infamous Penfolds copycat operator Rush Rich, concluding a six-year battle in China and Australia. In that case, TWE received the favourable judgment that Rush Rich’s registration of the Chinese character mark for Penfolds Winery – 奔富酒园 – was invalid.

TWE has since been awarded more than $14 million in damages, with Rush Rich ordered to stop all infringing activity and issue a public apology. This decision is now under appeal.

Penfolds Managing Director Tom King said: “Penfolds has a proud history in China that dates back to 1893 and we have a long-term commitment to the Chinese market. Robust legal protections that prevent infringement of our valuable trademarks gives wine lovers the confidence to continue enjoying high-quality wine that Penfolds is known for, and we’re grateful for the ongoing support of Chinese authorities.”

Wine Australia General Manager Regulation and General Counsel Ned Hewitson said: “Protecting the integrity of Australian wine brands in key export markets such as China is critical to maintaining the sector’s global reputation and commercial viability. Through Wine Australia’s Export Label Image Search System (ELISS), we help prevent export of copycat products that seek to exploit the reputation of established brands, and support industry efforts to protect IP and maintain consumer trust in Australian wine globally.”

TWE stated that it has a zero-tolerance approach to infringement, with a comprehensive global protection program to protect its world wine brands and related intellectual property assets.

In recognition of its market-leading global intellectual property function, including in-house management model, TWE was named the 2023 Food and Beverage and 2021 Asia Pacific IP team of the year by World Trademark Review.

The database featuring the case as a ‘National Reference Model for Unregistered Well-Known Trademark Protection’ is accessible at Home – People’s Court Case Database.

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