The branch of Singapore's TWG Tea – located in East China's Shanghai – has run afoul of the law. It was found guilty of trademark infringement by affixing Chinese labels on the packaging of its imported Longjing tea, a type of Chinese green tea, without permission.

The Pudong IP Bureau found Longjing Tea to be a registered geographical indication trademark by the Zhejiang Agricultural Technology Promotion Center and its unauthorized use was an infringement. Trademark infringement within the pilot free trade zone is not exempt from Chinese law, including the Trademark Law.

TWG was unable to provide sufficient evidence to prove its eligibility for the use of the Longjing Tea geographical indication. The bureau confiscated the infringing tea and imposed a fine of over 540,000 yuan ($75,337) due to the use of the geographical indication on its packaging that was likely to mislead consumers into believing that the product came from the indicated geographical region.

TWG sought an administrative review, but the Pudong New Area government upheld the bureau's decision. The company then appealed to the court, but the court ruled against them, upholding the bureau's findings and the government's decision.

The case highlights the importance of protecting intellectual property, including geographical indications, in China. The use of geographical indications is protected by Chinese law and businesses must take measures to ensure they comply with these regulations to avoid infringement and the associated legal and financial consequences.