The Lego Group has praised advancements in China’s intellectual property (IP) protection framework, noting that strengthened enforcement and enhanced legislation are boosting business confidence amid evolving challenges posed by artificial intelligence and digital platforms.
Robin Smith, vice-president and general counsel for China and Asia Pacific at Lego Group, highlighted the progress made in recent years, citing increased specialization among enforcement authorities and a deeper understanding of practical business challenges related to IP rights. "Prosecutors, judges, police officers and administrative enforcement personnel are becoming increasingly specialized," Smith said, emphasizing the expanding expertise within the country’s IP enforcement system.
The company pointed to a landmark legal case as evidence of China’s increasing commitment to upholding IP rights. On April 22, 2024, the Shanghai No. 3 Intermediate People’s Court upheld a lower court’s ruling in a criminal copyright infringement case targeting counterfeit Lego products. The defendant, Longteng, was fined 600 million yuan (approximately $89 million), while its principal operators were sentenced to prison terms of nine and eight years. Additional fines of 20 million yuan and 15 million yuan were imposed on the principals, respectively.
Following the criminal judgment, Lego Group reached a civil settlement with Longteng, which included a 36 million yuan damages payment and the surrender of 320 infringing molds. For Lego, the case represents more than just financial restitution. The company underscored the importance of trademark protection as fundamental to maintaining consumer trust and ensuring that customers receive authentic products.
Smith explained that securing trademarks safeguards not only the company’s longstanding brand assets but also assures consumers that they can confidently identify genuine Lego products. She added that stronger IP enforcement has fostered a fairer business environment, encouraging foreign companies to sustain investment and innovation in China.
During the first half of 2024, Lego launched more than 330 new products in the region, including popular themes such as Speed Champions, Botanicals, Technic, Icons, and Star Wars. The company’s focus on broadening its product range and creating immersive brand experiences aims to capture not only children but also a growing segment of adult consumers.
Lego’s CEO, Niels B. Christiansen, expressed optimism about the market’s potential, citing China’s large population and enthusiasm for the brand. The company reported robust financial results globally, with revenue up 21 percent to 41.9 billion Danish kroner ($6.5 billion) in the first six months of 2024, and a 32 percent increase in net profit to 8.6 billion kroner.
Smith also highlighted new challenges brought by the rise of AI and generative technologies, which have complicated brand protection efforts by facilitating new types of infringement in digital environments. She called for enhanced expertise and collaboration among stakeholders to address these developments effectively.
As part of its efforts to promote public awareness around IP protection, Lego launched the “Build It. Protect It.” exhibition on August 22 at Beijing’s SPURS Gallery. The event, the company’s first thematic exhibition on trademark protection in China, traced the history of the Lego brand from its patented brick design in 1958 to current innovations.
In parallel, Lego organized interactive educational activities at its Wangfujing store, helping children understand trademark protection through games and creative experiences. Smith emphasized the importance of linking IP concepts with creativity, stating, "Creativity needs to be protected, and protection fosters further innovation."