Court orders defendants to pay over Rmnb5mn, with SSR molecular marker testing used to prove infringement
SVM Variety Management (SVM) has secured a full victory in the Supreme People’s Court (SPC) of China, concluding a five‑year legal battle over the unauthorised propagation and commercialisation of the PremA280 apple variety marketed as Charlo, owned by Prevar of New Zealand.
The SPC rejected the defendants’ “prior rights” defence. Based on SSR molecular marker testing by the Ministry of Agriculture, the court confirmed that the defendants’ Longwei apple (also known as Yun-Yin Apple No 2) was identical to PremA280. The court ruled that large-scale commercial planting and fruit sales by the four defendants constituted illegal “production and propagation of propagating material”.
The SPC rejected the “prior rights” defence based on three key findings. The first was “breeding logic”, that it is biologically improbable for different entities to independently breed varieties with identical genetic traits. The second was that the Yun-Yin Apple No 2 originated from the illegal disclosure and propagation of PremA280 material. The third was that administrative Variety Appraisal Certificates serve as compliance documents and do not constitute civil ownership that can override valid PVR rights.
The court ordered the four defendants to pay over Rmb2mn (US$278,000) in damages, along with more than Rmb3mn (US$430,000) in royalty fees and enforcement costs.
SVM, the exclusive licensee and enforcement authority for PremA280, marketed as Charlo, in China, welcomed the ruling as a milestone for plant variety protection and a strong signal to the wider fruit industry. John Morton, managing director of SVM, said this judgement “reinforces the integrity of China’s PVR system and sends a clear message that illegal propagation will not be tolerated”.
Prevar also acknowledged the ruling as a significant step in protecting the global value of its proprietary varieties. “We remain committed to protecting plant variety rights and safeguarding the interests of licensees to foster the healthy development of the fruit industry,” said Tony Martin, chief executive of Prevar.
SVM encouraged all growers, nurseries, and distributors to ensure proper licensing before engaging in any commercial activity involving protected varieties.
