A store in East China's Shanghai has been penalized for infringing a ginseng trademark of a highly popular and distinguished pharmacy.

The Tonghanchuntang traditional Chinese herbal pharmacy was founded in 1783 and is famous for its authentic medicinal ingredients, elaborate preparations, elaborate preparations and ginseng and other herbal products.

The Jing'an District Market Supervision Bureau in the city launched an investigation into Ju Xi Xuan Food Store on July 24, 2022, after receiving a case transfer from the Jing'an district prosecutor's office and the Pudong division of the Shanghai Municipal Public Security Bureau.

The action was prompted by findings that the store possessed 87 ginseng roots improperly packaged in containers bearing the Tonghanchuntang registered trademark, without authorization.

All items were verified as infringing products by the trademark's owner. Initially purchased in bulk from farmers, the ginseng roots were repackaged by the store for retail, although they had not yet been sold when seized by the authorities.

Following mediation by enforcement officers, the store reached a settlement agreement with the trademark owner, agreeing to stop the infringement and pay 200,000 yuan ($27,620) in compensation.

The Jing'an District authorities concluded that the store's actions breached Article 57 (2) of China's Trademark Law. Consequently, the bureau imposed penalties including the confiscation of the 87 ginseng roots and a fine matching their market value of 133,735 yuan.

This case is said to underscore the rigorous enforcement of trademark rights in China.