In a move that suggests China is becoming serious about intellectual property rights Fujian Xiapu County Court recently issued a landmark criminal conviction and heavy penalties against the Xiapu Huafeng Factory after finding the factory and its legal representative guilty of counterfeiting Honeywell's "Bendix" trademark as well as brands of several other international companies.
The conviction carries a criminal fine of CNY1.15 million against the factory and a sentence of three years in jail and four years of probation against its legal representative, and a fine of CNY650,000. The combined CNY1.8 million in criminal fines is one of the highest levied on any convicted trademark counterfeiter in Chinese history.
The Huafeng Factory was first raided by Chinese government officials in 2006, resulting in the confiscation of 12,560 counterfeit "Bendix" brake pads. Honeywell markets its brake pads under the Bendix brand around the world.
Shane Tedjarati, president and CEO of Honeywell China and India, stated that the company was pleased with the conviction and the corresponding punishment levied by the Chinese judicial system in this case. He added that the actions taken by the Chinese government will ultimately benefit consumers by stopping the manufacturing of counterfeit brake pads. "Honeywell's customers in China and around the world value our products, largely due to the technologies and brands that we legitimately own. This ruling showcases China's determination to enforce the IPR protection, which will enhance Honeywell's long-term commitment to growing in China with state-of-the art technologies and know-how." Tedjarati said.