Firms fined £1m over fake Weir valves

TWO Chinese firms and their managers have been handed fines and prison sentences of "unprecedented severity" after making fake valves designed by Glasgow-based engineering giant Weir Group.

Yangzhou Yikai Machinery & Engineering and Shanghai Saimeng Mechatronic Engineering and their staff were fined a total of just under 1 million for counterfeiting Hopkinsons valves, which Weir makes and sells globally.

Alan Mitchelson, legal and commercial director at the FTSE 100-listed Weir Group, said: "Such high fines and long criminal jail sentences are very rare in China for intellectual property crimes.

"It has taken us more than a year of perseverance, but the outcome of this case is reassurance to our employees, customers and shareholders that the unauthorised use of our trademarks will not be tolerated."

The two companies started making and selling the counterfeit goods in 2006. The valves were used at Chinese power stations but quickly failed "causing serious injuries and damage, due to the defective nature of the product", Weir said.

The counterfeiters were arrested by the Chinese police in late 2009 following in-depth investigations. Weir assisted the police with their inquiries and the case went to trial in December 2010.