Yaduo Planet Trademark Infringement Case

Per a media report on June 5, 2026, a new landmark criminal judgment in the "Yaduo Planet" trademark infringement case again sent a clear message to global businesses: China’s crackdown on intellectual property violations is severe, systematic, and uncompromising.

This case, involving a sophisticated counterfeiting network that manufactured and distributed fake sleep products under the famous Yaduo Planet brand, resulted in substantial prison sentences, heavy fines, and full forfeiture of illegal profits—demonstrating China’s commitment to protecting trademark rights and ensuring a level playing field for all market participants.

Case Overview: A Full-Chain Counterfeiting Operation

The Yaduo Planet case centered on a criminal ring led by Lu Mou, who established a comprehensive production and sales network for counterfeit bedding products, including pillows, mattresses, eye masks, and pillowcases, all bearing the registered "Yaduo Planet" trademark.

The operation spanned from manufacturing to distribution. Law enforcement authorities seized over 60,000 counterfeit items and calculated the total value of the illegal operation at more than 11 million yuan (approximately $1.5 million).

The final judgment imposed the following penalties:

• Lu Mou (ringleader): 4 years in prison, 800,000 yuan ($110,000) fine, and forfeiture of 800,000 yuan in illegal gains

• Lu Moumou: 3 years in prison (suspended for 4 years), 100,000 yuan ($14,000) fine, and forfeiture of 80,000 yuan in illegal gains

• Yang Mou: 2 years in prison (suspended for 2 years) and 100,000 yuan ($14,000) fine

In addition to criminal sanctions, the infringers were ordered to pay 1.05 million yuan ($145,000) in civil compensation to Yaduo Group for economic losses and legal costs. This dual-track approach—criminal punishment plus civil damages—reflects China’s comprehensive strategy to deter trademark infringement.

What This Case Reveals About China’s IP Enforcement Landscape

1. Zero Tolerance for Organized, Large-Scale Infringement

The court explicitly emphasized that "large-scale, full-chain counterfeiting not only disrupts fair market order and infringes brand rights but also endangers consumer health and safety". The 4-year prison sentence for the ringleader represents one of the harshest penalties for trademark infringement in the home goods sector, signaling that China will not tolerate organized criminal activity that undermines brand integrity.

2. Comprehensive Enforcement: From Production to Distribution

Chinese authorities have intensified efforts to dismantle entire counterfeiting supply chains rather than just targeting individual sellers. In the Yaduo Planet case, law enforcement collaborated across regions to identify and shut down manufacturing facilities, warehouses, and distribution channels simultaneously, ensuring that all links in the illegal operation were eliminated. This holistic approach prevents infringers from simply relocating their operations or shifting to new distribution methods after enforcement actions.

3. Strong Civil Remedies Complement Criminal Penalties

The Yaduo Planet case demonstrates that criminal convictions do not preclude additional civil liability. The 1.05 million yuan civil compensation award—covering both actual damages and legal expenses—reflects China’s commitment to letting right holders recieve reasonable compemsations while deterring future violations.

Practical Implications for Foreign Businesses Entering China

1. Register Early and Strategically: Secure trademark protection before entering the Chinese market through either direct application to the China National Intellectual Property Administration (CNIPA) or the Madrid System. Register defensive marks for variations of your brand name to prevent bad-faith registrations.

2. Monitor and Enforce Proactively: Implement regular trademark monitoring to detect potential infringements early. Work with local IP attorneys to develop a comprehensive enforcement strategy that leverages administrative, civil, and criminal remedies as appropriate.

3. Leverage Government-Enterprise Collaboration: Participate in CNIPA’s brand protection initiatives and e-commerce platform cooperation mechanisms to access real-time infringement data and coordinated enforcement support.

4. Document Everything: Maintain detailed records of brand usage, marketing investments, and sales data to strengthen your position in enforcement actions and maximize potential damages awards.