Jail time for Chinese whisky faker
A woman in China has been sentenced to four years in prison and fined $50,000 for selling fake Scotch whisky.
It is the first time the ‘Scotch Whisky’ trademark, which is owned by the Scotch Whisky Association, has been used to bring a criminal case in China.
The defendant, wholesaler Li Cuihong, sold a variety of fake alcoholic drinks in Urumqi in the north-west region of China.
She added artificial flavouring to unaged Chinese spirits and labelled the concoctions as ‘Scotch Whisky’.
Her lawyer argued that the bottles did not resemble any Scotch whisky brands, however unauthorised use of the phrase ‘Scotch Whisky’ is illegal.
Li was previously jailed for selling illegal spirits.
Lindesay Low, the Scotch Whisky Association’s legal adviser for China, said: “This conviction of someone selling fake ‘Scotch Whisky’ should be an example to others involved in this dangerous business which is damaging for both consumers and the legitimate drinks industry.
“It is further evidence of the successful work being done in co-operation with the Chinese authorities to protect the reputation of Scotch Whisky.”
Valued at an estimated £100 million, China is one of the world’s largest whisky markets, and it continues to grow.
Leighton Cassidy, partner in Field Fisher Waterhouse’s trademark and brand protection team, said that China is an incredibly difficult market for many UK brand owners, and that the punitive example the case sets is “significant”.
“I would hope that the success of the Scotch Whisky Association’s proceedings and the term of imprisonment is widely publicised so that it may act as a continued deterrent to infringers,” he said.
He said that while the case is important for UK brand owners, it also brings into focus issues of public health, adding: “The South East Asia market has seen some recently publicised and alarming instances of poisoning from consumption of distilled rice wine drinks like ‘Arak’ which when produced incorrectly can contain dangerous methanol levels, which has led to fatalities.
“Bali has seen a spate of these cases in recent years and if stamping out the practice of unregulated alcohol production is a consequence of this decision then that is an added benefit.”
