Counterfeit Disney clothing ring busted in Shanghai, sentences up to 4.5 years

Three individuals in Shanghai were sentenced to jail terms and fines totaling millions of yuan for producing and selling fake Disney-branded children's clothing, reported Shanghai Observer on Monday.

The case began in February 2023 when a woman reported buying suspicious Disney underwear online. Police raided a three-story warehouse in Henan, seizing over 200,000 counterfeit garments worth 1.8 million yuan.

A couple, identified with surnames of Zhu and Che, ran the operation. They claimed to have a 40,000 yuan ($5,560) "authorization letter" from Disney, but it was a forgery obtained through a third party. "We knew it wasn't real," they admitted.

Disney confirmed it never authorized the production or sale of these products. From September 2021 to February 2023, the group sold over 830,000 items, raking in 17 million yuan.

The court sentenced Che to 4.5 years in prison and a 5.5 million yuan fine for trademark counterfeiting. Zhu received a 3-year sentence and 3 million yuan fine. A third person surnamed Feng, who managed their online store, was sentenced to two and a half years in prison with a three-year probation and fined 200,000 yuan.