If you create, sell, or import porcelain products—especially those with unique patterns or designs—understanding China’s copyright laws is critical to protecting your intellectual property . A landmark 2021 case, recognized as one of the Supreme Court’s Top 50 Typical Cases, offers vital insights into how Chinese courts rule on porcelain design infringement. This guide breaks down the case details, legal standards, and actionable steps to shield your porcelain designs from unauthorized copying.
Case Background: Yongfengyuan v. Zhiyu & Yixiang
Dispute: Yongfengyuan, a renowned Chinese porcelain brand, sued online seller Zhiyu and company Yixiang for copyright infringement. Zhiyu allegedly copied the design of Yongfengyuan West Lake Peony porcelain set—a high-profile collection used in the 2016 G20 Hangzhou Summit state banquet—and sold counterfeit versions on e-commerce platforms.
Yongfengyuan purchased the accused products from Zhiyu via notarized procedures but received a sales invoice (Fapiao) from Yixiang instead of Zhiyu. This led Yongfengyuan to sue both Zhiyu (for selling infringing products) and Yixiang (for producing/selling them).
Key Legal Issues Addressed by the Court
Chinese courts focused on three critical questions to resolve the dispute—answers that every porcelain business should note:
1. How Do Courts Determine “Substantial Similarity” for Porcelain Designs?
To prove copyright infringement, the plaintiff must first show the accused product is substantially similar to the original copyrighted work. Here is how the court applied this standard:
Copyright Registration as Foundation: Yongfengyuan held valid copyright registrations for its West Lake Peony Series Flower 1 and West Lake Peony Series Flower Blue Background designs. Registration is not required for copyright protection in China, but it serves as strong prima facie evidence of ownership.
Focus on Unique Details (Not Common Motifs): Peonies are a traditional and widely used motif in Chinese porcelain, so the court did not rely on the general peony theme alone. Instead, it analyzed specific, unique elements:
□ Color scheme: Yellow flowers, brown branches, green leaves, and stone accents.
□ 3D structure: The arrangement and depth of the peony blooms.
□ Overall layout: The spacing and composition of motifs on the porcelain surface.
□ Consumer Confusion Test:The court found the accused products closely mirrored these details, noting that ordinary consumers could reasonably confuse the counterfeits with Yongfengyuan’s original designs.
Ruling: The accused products were deemed substantially similar to Yongfengyuan copyrighted works.
2. When Is a Seller Considered to Have Acted in Bad Faith ?
Infringement claims often hinge on whether the defendant knew (or should have known) the design was protected. Here’s how bad faith was proven:
Awareness of the Original Work: Yongfengyuan’s West Lake Peony set gained national recognition after being used in the G20 Summit. Zhiyu, an experienced online ceramics seller, should have been aware of well-known products in the market, the court stated.
Misleading Labeling: Zhiyu marketed the accused products as Mrs. Porcelain – a term likely to associate the goods with Yongfengyuan’s reputable designs, indicating Zhiyu knew (or recklessly disregarded) the infringement.
Ruling: Zhiyu acted in bad faith and infringed Yongfengyuan’s copyrights by selling the counterfeit products.
3. When Are Multiple Defendants (e.g., Sellers, Suppliers) Held Liable?
Yongfengyuan sued both Zhiyu (seller) and Yixiang (invoice issuer), but liability was not automatic. The court clarified:
Zhiyu’s Liability as a Seller: Zhiyu was found liable for selling infringing products, as it directly offered the counterfeits online and could not prove a legal source (see below). However, Yongfengyuan failed to provide evidence that Zhiyu produced the products (e.g., factory records, manufacturing contracts). Zhiyu’s claim of “factory direct sales” (used for “anti-theft purposes”) was deemed unsubstantiated.
Yixiang’s Lack of Liability: Yixiang issued the sales invoice, but Yongfengyuan provided no evidence linking Yixiang to production or sales (e.g., manufacturing agreements, shipping records). Without proof of involvement, Yixiang was not held liable.
Why Legal Source Defenses Often Fail for Porcelain Sellers
Zhiyu argued it had authorization from a third party (Chaozhou Yufenglong) to sell the designs, but the court rejected this defense for two reasons:
1. No Proof of Matching Designs
The design registered by Chaozhou Yufenglong did not match the accused products.
2. Unclear Product Source
Purchase records did not confirm the accused products actually came from Chaozhou Yufenglong.
Lesson: To claim a legal source defense, sellers must provide ironclad evidence: (1) a valid license from the copyright owner, and
(2) proof the accused products trace directly to that licensed source.
Key Takeaways for Porcelain Businesses in China
Whether you’re a designer, manufacturer, or seller, use this case to strengthen your IP strategy:
1. Register Your Designs Early: Copyright registration (via China’s National Copyright Administration) simplifies proving ownership in court.
2. Document Uniqueness:For traditional motifs (e.g., peonies, dragons), highlight specific details (colors, layout, 3D elements) that make your design original—these are what courts will scrutinize.
3. Vet Your Supply Chain: If working with Chinese suppliers or sellers, include strict IP clauses in contracts (e.g., warranties that products do not infringe third-party rights).
4. Preserve Evidence of Infringement: For suspected infringement, gather notarized purchase records, screenshots of misleading marketing (e.g., “Mrs. Porcelain” labels), and communications with sellers/suppliers.
5. Focus on Use and Recognition: If your design is used in high-profile events (like the G20 Summit), document this to prove market recognition—critical for showing a defendant should have known of your rights.
Conclusion: Protect Your Porcelain Designs Proactively
China’s courts are increasingly supportive of IP rights, but success depends on proactive protection. By registering your designs, documenting uniqueness, and vetting partners, you can avoid costly disputes and safeguard your brand’s reputation.