*AI-generated translation, for reference only.

Keywords: civil; plant variety rights ownership and infringement; variety approval; obtaining plant variety rights authorization; dismissal of complaint

Case Facts

Hunan Ke[REDACTED] Seed Industry Co., Ltd. (hereinafter "Ke[REDACTED] Company") alleged as follows: Ke[REDACTED] Company is the breeder of "Keliangyou 2493" and "Keliangyou 88" and has obtained the *Certificates of Approval for Major Crop Varieties* for both varieties. Li [REDACTED]hua is a shareholder and regional sales manager of Ke[REDACTED] Company and also the legal representative of Hunan Zhi[REDACTED] Seed Industry Co., Ltd. (hereinafter "Zhi[REDACTED] Company"). Ke[REDACTED] Company alleged that Li [REDACTED]hua used Ke[REDACTED] Company's official seal to sign a power of attorney authorizing Zhi[REDACTED] Company to produce seeds of "Keliangyou 2493" and "Keliangyou 88," and used the power of attorney together with the two variety approval certificates to obtain an *Agricultural Crop Seed Production and Operation License*. Such conduct, together with Zhi[REDACTED] Company's subsequent seed production and sales activities, infringed Ke[REDACTED] Company's plant variety rights. Ke[REDACTED] Company accordingly filed a lawsuit requesting that the court order: (1) Zhi[REDACTED] Company and Li [REDACTED]hua to immediately cease infringing and counterfeiting Ke[REDACTED] Company's plant variety rights in "Keliangyou 2493" and "Keliangyou 88"; (2) Zhi[REDACTED] Company and Li [REDACTED]hua to jointly compensate Ke[REDACTED] Company for economic losses and reasonable expenses incurred in rights protection totaling RMB 3,000,000; (3) Zhi[REDACTED] Company and Li [REDACTED]hua to bear joint and several liability for compensation; and (4) the two defendants to bear all litigation costs of this case.

Li [REDACTED]hua defended as follows: As Ke[REDACTED] Company's regional manager, Li [REDACTED]hua lawfully held and used Ke[REDACTED] Company's approval certificates and seal. After reaching an oral agreement with Sun [REDACTED], the head of Ke[REDACTED] Company, on behalf of Zhi[REDACTED] Company, on cooperation matters including variety exchange, Li [REDACTED]hua obtained the production and operation license in order to meet agricultural time constraints. The cooperation was suspended due to shareholder disputes arising from, among other things, Ke[REDACTED] Company's equity transfer, and Ke[REDACTED] Company did not provide the parental seeds needed for seed production. Zhi[REDACTED] Company did not produce or sell seeds of "Keliangyou 2493" or "Keliangyou 88," and no infringement occurred.

On May 31, 2023, the Changsha Intermediate People's Court of Hunan Province rendered Civil Ruling (2023) Xiang 01 Zhi Min Chu No. 26, dismissing Ke[REDACTED] Company's complaint. Ke[REDACTED] Company filed an appeal but applied to withdraw the appeal on November 18, 2023. On December 6, 2023, the Supreme People's Court rendered Civil Ruling (2023) SPC IP Civ Final No. 2345, granting Ke[REDACTED] Company's application to withdraw the appeal.

Judge's Opinion

*Article 2* of the *Regulations of the People's Republic of China on the Protection of New Plant Varieties* provides: "The term 'new plant variety' as used in these Regulations refers to a plant variety that has been artificially bred or developed from a discovered wild plant, possesses novelty, distinctness, uniformity, and stability, and has been appropriately named." *Article 3* provides: "The competent administrative departments of agriculture and forestry under the State Council (hereinafter collectively referred to as 'examination and approval authorities') shall, in accordance with their respective responsibilities, be jointly responsible for accepting and examining applications for plant variety rights and shall grant plant variety rights (hereinafter 'variety rights') to plant varieties that meet the requirements of these Regulations." *Article 15(1)* of the *Seed Law of the People's Republic of China* provides: "The State implements a variety approval system for major crops and major timber trees. Major crop varieties and major timber tree varieties shall pass national-level or provincial-level approval before being promoted. Major timber tree varieties determined by the competent forestry and grassland authorities of the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government shall be subject to provincial-level approval." It is thus evident that the variety approval system is an administrative management and market access system that determines whether an applied-for variety may be promoted and the scope of promotion permissible. Variety approval is in the nature of an administrative license, while the grant of plant variety rights is in the nature of the conferral of a civil right; the two are not necessarily related.

In this case, Ke[REDACTED] Company had only obtained the *Certificates of Approval for Major Crop Varieties* for "Keliangyou 2493" and "Keliangyou 88" but had not obtained plant variety rights authorization. The mere fact that Ke[REDACTED] Company obtained variety approval cannot be used to conclude that it obtained plant variety rights authorization. Ke[REDACTED] Company's complaint for plant variety rights infringement in this case lacked a rights basis and did not meet the conditions for filing a lawsuit; accordingly, the court rendered a ruling pursuant to law dismissing the complaint.

Judgment Digest

The variety approval system is an administrative management and market access system that determines whether an applied-for variety may be promoted and the scope of promotion permissible. Variety approval is in the nature of an administrative license, while the grant of plant variety rights is in the nature of the conferral of a civil right; the two are not necessarily related. Where a plaintiff claims to hold plant variety rights solely based on the fact of obtaining variety approval and seeks to hold the defendant liable for infringement on that basis, the People's Court shall rule to refuse to accept the case or to dismiss the complaint.

Related Index

*Articles 15(1), 23, 25, and 28* of the *Seed Law of the People's Republic of China*

*Articles 2 and 3* of the *Regulations of the People's Republic of China on the Protection of New Plant Varieties* (State Council Order No. 653, as amended in 2014)

First Instance: Changsha Intermediate People's Court of Hunan Province, Civil Ruling (2023) Xiang 01 Zhi Min Chu No. 26 (May 31, 2023)

Second Instance: Supreme People's Court, Civil Ruling (2023) SPC IP Civ Final No. 2345 (December 6, 2023)

The text of this case was revised on December 22, 2025.