Counterfeiters of Moutai Liquor sentenced to prison

Originally, defendants Da Liu and Xiao Liu ran a business together and opened a Liquor and Tobacco Supermarket (Store A). However, in December 2021, they came up with the idea of exploiting a 'profit opportunity' and started to counterfeit and sell fake Moutai liquor.

Moutai (Chinese: 茅台) is China's most famous liquor. Considered among the best in the world along with French Cognac and Scotch Whisky, it's the result of a recipe with a millennia-old history, said to date back even 2,000 years since the first documented evidence is from 135 BC. 

The ingredients to produce this liquor come exclusively from the Chishui River Valley, near Guizhou in southern China, where the city of Moutai is located, giving its name to the distillate. The cereals used are sorghum and wheat, which undergo various stages of fermentation and distillation (up to nine), before being expertly blended together. 

The spring water from the city of Moutai plays a fundamental role, with its unique organoleptic characteristics contributing to the distinctive taste of the distillate, as well as the particular microclimate of the valley, ideal for fermenting raw materials. Furthermore, the special chemical composition of the soil, from which the aging jars are made in which the liquor rests after the initial processing (jars made of terracotta), is indispensable for the uniqueness of the taste of this "baijiu".

It requires two full years of processing before being stored for aging, and rests for another year before the "Master Blender" begins to blend it with older liquors. In total, every drop of Moutai requires 5 years between processing and aging, and it can only be produced in the city from which it takes its name. Its production is therefore very limited, and the prestige it enjoys is based on unique characteristics that have become the pride of the Moutai brand worldwide.

Starting in December 2021, Da Liu and Xiao Liu instructed others to use methods such as 'piercing holes' to pour cheap flavoured white liquor into bottles of Moutai liquor. These bottles were then sent to Store A, where Liu MouMou was responsible for selling them. Due to the considerable difference between the cost of the counterfeit liquor and the selling price, the three individuals made substantial profits.

Not content with selling fake liquor in just one store, Da Liu, after producing counterfeit Moutai liquor in the same manner, began selling it in his own store (Store B).

By January 2022, the police seized more than 200 bottles of white liquor from the two stores, with a total value of over 500,000 yuan. After examination, all these liquors were found to be counterfeit products with registered trademarks.

After being arrested, the defendants Da Liu, Xiao Liu and Liu MouMou confessed to the above facts and admitted their guilt, each paying a fine in advance.

Court Judgment

After trial, the Hongkou District People's Court held that Da Liu and Xiao Liu, by using the same trademark on the same goods without the permission of the registered trademark owner, committed a particularly serious crime of counterfeiting registered trademarks. Therefore, they were found guilty of the crime of counterfeiting registered trademarks.

Liu MouMou, on the other hand, knowingly sold counterfeit goods with registered trademarks, and his actions were particularly serious. Therefore, he was found guilty of selling counterfeit goods with registered trademarks.

Judge's Comments

The court determined that the counterfeiting and sale of fake Moutai liquor in this case constituted a chain crime. According to the specific provisions of relevant laws and judicial interpretations, those who commit the crime of counterfeiting registered trademarks and then sell counterfeit goods with the same trademark should be convicted and punished for the crime of counterfeiting registered trademarks. 

Since both Da Liu and Xiao Liu were involved in counterfeiting and selling fake goods, they were convicted and punished for these crimes.

Defendant Liu MouMou sold goods that he knew were counterfeit registered trademarks, and there were other particularly serious circumstances, and his conduct constituted the crime of selling goods with counterfeit registered trademarks.

This case is a joint crime: Da Liu and Xiao Liu instructed others to counterfeit and sell fake Moutai liquor, played a major role in the case, and were the principal offenders; Liu MouMou assisted in the sale and therefore was an accomplice.

The harm of counterfeiting and selling not only seriously infringes on the rights and interests of registered trademark owners, but also endangers the rights and interests of consumers. Counterfeit registered trademarks will directly mislead consumers to choose products with counterfeit registered trademarks, which will harm the interests of consumers.

In particular, counterfeiting medicine, maternal and infant products and food, such as liquor in this case, may also cause irreparable damage to the health of consumers.

However, the court took into account that the defendants admitted their guilt and accepted the punishment by paying a fine in advance: therefore, on April 8, 2024, the Hongkou District People's Court sentenced Da Liu to three years and six months imprisonment and a fine, Xiao Liu to two years imprisonment and a fine, and Liu MouMou to one year imprisonment and a fine.

Source: 真瓶装假茅台酒？真“刑”！(qq.com)