The Supreme People's Court of China has upheld a landmark ruling awarding a New Zealand fruit producer RMB 3.3m (£351k) in damages following infringement of its plant variety rights (PVR) for a popular apple variety. 

Enzafruit, which is a subsidiary of New Zealand-based fresh produce business T&G Global, was represented by Chinese IP firm Lusheng. The firm said in a statement that it was a ‘remarkable compensation amount awarded" for a PVR infringement case, a type of IP right protecting plant varieties.

The Supreme Court decision of 26 February upheld an earlier ruling from November 2023 regarding the protection of the Scilate apple, brand name Envy, one of New Zealand’s leading apple varieties, by the Lanzhou Intermediate Court of Gansu Province.

The Supreme Court found that the defendant, a local grower, had infringed Enzafruit’s IP rights by unlawfully cultivating and selling Scilate plant variety material and apples harvested from the illegal materials.

The court ordered the infringer to cease all violations and to destroy illegally propagated plant materials to protect the plaintiff’s rights and interests. 

The apple variety is legitimately grown in China with Enzafruit’s partner, Joy Wing Mau.

The firm noted that the judgment was "one of a few of its kind, setting a precedent for foreign and domestic PVR holders by extending protection over any harvested fruit to propagation material of any variety”, following the recent strengthening of the law that regulates breeding plant varieties, China's Seed Law.

Sunny Su, a principal in Lusheng's digital and commercial team, commented: “This successful case underscores the increasing importance of IP protection for local and foreign brand owners in China's agrifood industry, particularly given the rising demand for quality produce.”

Liping Xu, Lusheng senior litigator, said that the case represented one of the “rare instances in the new plant varieties where punitive damages have been applied in high-compensation cases”.

He noted: "The destruction of illegally propagated plant materials is the most effective means of safeguarding the interests of PVR holders.” 

An Enzafruit spokesperson called it a “landmark ruling”, giving T&G Global greater confidence in its Chinese investments.

The spokesperson added: “This decision paves the way for T&G Global to accelerate our growth plans and further contribute to China's thriving horticulture sector." 

With the defendant’s appeal dismissed, Enzafruit will now also be entitled to file a new lawsuit and seek further compensation for the infringement of rights since the initial 2023 judgment.

According to the Standing Committee of the National People's Congress’ inspections of the enforcement of the Seed Law in 2023, the average total for damages is about RMB 425,000 (£54,000).