In an effort to highlight exemplary cases, strengthen intellectual property protection in the seed industry, and drive high-quality development and innovation, the Supreme People's Court recently selected 15 typical cases of judicial protection for seed industry intellectual property from cases concluded nationwide over the past year. These cases were released on March 18, 2024, to guide judicial efforts supporting seed industry revitalization and safeguarding national food security.

Guoyao Qindao Jinan Office lawyers Gao Yang and Shao Xiaolin successfully represented Shandong Luyan Agricultural Seed Co., Ltd. in a plant variety rights implementation license contract dispute with Liaocheng Dongfang Seed Co., Ltd., which was selected as Case 13 in the publication: “Dispute over Wheat Plant Variety Rights Implementation License for ‘Jimai 22’ [Shandong Seed Co., Ltd. vs. Liaocheng Seed Co., Ltd.].”

Supreme Court link: Supreme Court releases fourth batch of typical cases for judicial protection of seed industry IP

First Trial: Shandong Jinan Intermediate People’s Court (2022) Lu 01 Zhi Min Chu 271

Second Trial: Shandong Higher People’s Court (2022) Lu Min Zhong 2117

Basic Case Facts

The Crop Research Institute of Shandong Academy of Agricultural Sciences and Shandong Luyan Agricultural Seed Co., Ltd. signed a “Plant Variety Commissioned Development and Operation Agreement,” granting Shandong Luyan Agricultural Seed Co., Ltd. an exclusive license to exercise the rights to the “Jimai 22” wheat variety. The agreement also allowed Shandong Luyan to sublicense or otherwise authorize third parties for production and business operations. Subsequently, Shandong Luyan Agricultural Seed Co., Ltd. signed an agreement with Liaocheng Dongfang Seed Co., Ltd., authorizing the latter to produce and market “Jimai 22” wheat seeds within Guantian County, with the mode of operation specified as a direct-to-farmer supply model for unified seed supply projects. Any unauthorized sales of these seeds outside the designated area were grounds for Shandong Luyan to unilaterally terminate the agreement, with non-refundable technology promotion fees and performance guarantees, and Liaocheng Dongfang would be subject to a penalty ranging from 500,000 to 3 million RMB.

During the contract's performance, Lawyer Gao Yang’s team, representing Shandong Luyan Agricultural Seed Co., Ltd., conducted a market investigation and obtained evidence by purchasing “Jimai 22” seeds produced by Liaocheng Dongfang Seed Co., Ltd. from areas outside Guantian County. Shandong Luyan Agricultural Seed Co., Ltd. filed a lawsuit, citing breach of contract by Liaocheng Dongfang Seed Co., Ltd., and requested termination of the agreement, cessation of production, propagation, and sale of “Jimai 22” wheat seeds, as well as a payment of 1.5 million RMB in penalties and expenses, with the 30,000 RMB performance guarantee withheld.

Judgment

The Jinan Intermediate People's Court ruled to terminate the agreement, ordering Liaocheng Dongfang Seed Co., Ltd. to pay Shandong Luyan Agricultural Seed Co., Ltd. a breach penalty of 500,000 RMB and retaining the 30,000 RMB performance guarantee.

The Shandong Higher People's Court on appeal upheld this ruling, concluding that the agreement specified the marketing scope and operation mode for “Jimai 22” seeds produced by Liaocheng Dongfang Seed Co., Ltd. It further affirmed Shandong Luyan Agricultural Seed Co., Ltd.'s right to terminate the agreement under specified conditions. Shandong Luyan’s discovery of “Jimai 22” seeds in areas outside Guantian County via market channels constituted a breach, despite Liaocheng Dongfang’s defense that other distributors had resold the seeds. As the agreement explicitly categorized this conduct as a violation, the defense was insufficient, and Liaocheng Dongfang Seed Co., Ltd. was required to assume the corresponding liability for breach. The appeal was dismissed, and the original judgment was upheld.

Typical Significance

This case accurately defined the rights and obligations between the variety owner and licensee, legally supporting the variety owner’s claim for breach liability under contract law, demonstrating effective legal protection for plant variety rights.

Inclusion in this collection of exemplary cases affirms the quality and expertise of Guoyao Qindao Jinan Office’s case handling. Seeds are the "chips" of agriculture, and strengthening intellectual property protection in the seed industry is vital for sustainable agricultural innovation and ensuring food security. President Xi Jinping and the Party's Central Committee have prioritized food security and seed industry development. The 2021 No. 1 Central Document, "Opinions on Comprehensively Promoting Rural Revitalization and Accelerating Agricultural and Rural Modernization," calls for strengthening seed industry development and intellectual property protection in breeding. Protecting plant variety rights is integral to national food security, rural revitalization, and prioritizing agricultural development. Since 2021, Guoyao Qindao Jinan Office has actively engaged in safeguarding plant variety rights, handling numerous cases involving plant variety licensing and infringement, thus protecting the rights of plant variety owners, promoting a regulated seed market, and contributing to national food security.

Personal Profile

Gao Yang, Lawyer

Contact: 15805310149

Senior Partner, Guoyao Qindao (Jinan) Law Firm; Member of the Communist Party of China; Law graduate from Northwest University of Politics and Law

With nearly 15 years in the legal profession, Gao Yang has established a solid foundation in legal theory, honed substantial practical legal experience, and developed courtroom advocacy skills.

Since practicing law, he has served as long-term legal counsel for multiple national agencies and large companies, including the PLA Unit 71345, Jinan Military District Housing Bureau, Shandong Luyan Agricultural Seed Co., Ltd., Shandong Huiteng Lubricant Manufacturing Co., Ltd., Shandong Tonglida Automobile Trading Co., Ltd., Jinan Yunuo Machinery Manufacturing Co., Ltd., Jinan Jincheng International Travel Co., Ltd., Shandong Provincial Sugar, Alcohol, and Food Trade Association, Lixia Tiamei Medical Beauty Institute, and Qilu Material Resources (Zibo) Co., Ltd. He has successfully represented hundreds of civil and commercial cases and criminal cases, achieving favorable outcomes in complex, high-stakes cases. Gao Yang’s expertise and dedication to service have maximized the protection of clients' lawful rights, earning high recognition and trust from clients.

Personal Profile

Shao Xiaolin, Lawyer

Contact: 17853160098

Full-time Lawyer, Guoyao Qindao (Jinan) Law Firm; Law graduate from Shandong University of Political Science and Law

Areas of Expertise: Criminal defense and representation, civil matters, intellectual property, internet and information technology.

Shao Xiaolin has provided legal counsel to Shandong Luyan Agricultural Seed Co., Ltd., Ancheng Property Insurance Co., Ltd., Qilu Material Resources (Zibo) Co., Ltd., Jinan Shanchuan Machinery Manufacturing Co., Ltd., among other entities. He has handled various civil and commercial cases, criminal defense, and participated in over ten plant variety rights infringement cases, accumulating considerable case handling experience. Adhering to a professional ethic of “compassion paired with the spirit of rule of law,” Shao Xiaolin is dedicated to offering clients skilled legal services.