Chinese court upholds New Zealand company's rights in kiwifruit case

The Wuhan Intermediate People's Court has issued its judgment in the Zespri's plant variety rights infringement case, filed in 2023, against two defendants involved in the unauthorized production, sale and marketing of Gold3 kiwifruit, finding that the primary defendant infringed Zespri's IP rights through the unauthorized planting and sale of Gold3. 

Zespri, a cooperative of kiwi fruit growers in New Zealand, has won a significant legal victory in China, successfully defending the intellectual property rights of New Zealand kiwifruit growers.

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 the 260 hectares of infringing plant material and to pay compensation of 5.246 million yuan ($737,679), or 1.28 million New Zealand dollars (damages of 5 million yuan and expenses of 246,000 yuan) to Zespri. The court found that the second defendant sold Gold3 fruit through an online store, but given the fruit originated from the primary defendant who Zespri had already filed action against, the court considered the PVR rights to be sufficiently protected through its finding against the primary defendant.

Zespri CEO Jason Te Brake said the outcome is a significant win for the New Zealand industry and its partners in China and marks a major step in its efforts to protect the rights of New Zealand growers. "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." 

"It also highlights the importance of intellectual property protection in horticulture, for local and foreign companies, and the role it plays in ensuring food safety for consumers," he added. "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." 

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 unauthorized Gold3 plantings.

ouyangshijia@chinadaily.com.cn