Four High-Risk Operations For Digital Printing Companies! Risk Of License Revocation And Accountability

In 2024, there was a real criminal case involving a printing company. The head of a printing company and a typesetting employee were suddenly taken away by the police on suspicion of criminal activity. The case started when a well-known domestic tile company reported that a large number of counterfeit products bearing its registered trademark had appeared on the market. The trademarks on these counterfeit product packaging boxes were printed by this printing company.

The police pointed out that the printing company, without authorization, printed others' registered trademarks, suspected of violating Article 215 of the Criminal Law: "Crime of Illegally Manufacturing or Selling Illegally Manufactured Registered Trademark Signs." Investigation revealed that the number of trademark signs involved reached 40,000. When lawyers intervened, the head of the printing company had already been granted bail pending trial, but the case was still under investigation, and the situation was not optimistic.

Detailed Explanation of Article 215 of the Criminal Law: Crime Risks Printing Companies Cannot Ignore

The crime involved in this case-"Crime of Illegally Manufacturing or Selling Illegally Manufactured Registered Trademark Signs"-is unfamiliar to many printing practitioners. Many people think: "The printing company just prints according to the client's requirements and didn't participate in counterfeiting. How can this be a crime?" However, according to Article 215 of the Criminal Law, as long as the trademark owner's permission is not obtained, unauthorized manufacture or sale of others' registered trademarks, whether or not involved in the subsequent production or sale of counterfeit goods, can constitute a crime.

This means that even if a company only prints a few bags, labels, or boxes with trademarks, without proof of legal authorization, it may face criminal risks. If circumstances are serious, the penalty can be imprisonment of up to three years, criminal detention, or fines; if the quantity is particularly large, the punishment is heavier. In this case, 40,000 signs are already considered a "relatively large quantity" in judicial practice, fully meeting the criteria for filing a case.

Four High-Risk Practices for Printing Companies: Legal Risks and Compliance Blind Spots

In the printing industry, which pursues efficiency and cost reduction, some commonly practiced "usual operations" are actually the most dangerous "legal traps." In long-term practice, many printing companies fall into legal risks due to the following "common operations":

01
Lack of archiving mechanism

Printing according to the client's design without checking authorization or keeping records. Many companies fulfill orders solely based on the trademark designs provided by clients, without requiring proof of authorization, verifying trademark registration, or retaining communication records or contracts. When it involves a well-known brand, it is easily deemed as infringement that the company "knew or should have known," making exemption difficult.

02
Unclear client identity

Taking on "small or urgent orders" with unclear client identities. Some small-amount, urgent orders involve clients without formal corporate qualifications who communicate and pay deposits via WeChat. These orders often have unknown origins and may hide a counterfeiting and selling chain.

03
Lack of inspection duty

Relaxing inspection obligations when printing for "old clients" or acquaintances. When long-term clients suddenly change brands or designs, many companies, based on trust, no longer require authorization documents. However, the law does not consider whether the parties are familiar but only whether reasonable inspection due diligence has been performed, especially for manufacturers of trademark signs.

04
Weak legal awareness

Mistakenly assuming that "not participating in sales" provides exemption is the most common misconception. In fact, according to Article 215 of the Criminal Law, merely manufacturing unauthorized registered trademarks can constitute a crime, regardless of whether involved in selling the products. In the case mentioned above, the printing company only printed 40,000 signs, but because they were registered trademarks and the client had no authorization, the case was still filed.

Building a Compliance Firewall: Three Lifelines for the Survival and Development of Printing Companies

Faced with severe legal risks, does this mean printing companies can only "stop taking orders due to fear" and refuse all trademark orders? Certainly not. The key to solving the problem is not stopping orders but establishing a "compliance firewall" throughout the entire business process. This system should create a seamless protection chain from pre-order to production and within the company.

01
Before taking orders: establish review checkpoints

(1) Compulsory verification documents: Customers must provide proof of rights such as the "Trademark Registration Certificate" and the authorized use contract.

(2) Verify customer identity: register basic information such as unified social credit code and contact ID card.

(3) Leave traces throughout the process: keep communication records such as WeChat, email, and recording, and make it clear that the customer's commitment is legal and responsible.

(4) Sign an agreement: Even if it is a small order, a service order or contract should be signed to clarify the customer's tort liability.

02

In production: improve the filing mechanism

(1) Sample and electronic file archiving: All printed content involving the brand should be retained for at least 1 year.

(2) Number traceability: Establish an order numbering system to associate customer information, printed content and authorization documents.

(3) Bottom-line training for employees: Remind front-line typesetters that they must report and confirm the drawings of well-known brands, and must not handle them privately.

03

Within the enterprise: cultivate a culture of compliance

(1) Preparation of training manuals: use popular cases to explain the risks and identification methods of registered trademarks.

(2) Establish an early warning mechanism: suspend the execution of suspected infringing orders, conduct internal evaluations or consult professionals.

(3) Introduce legal counsel: Regularly review the process, establish a perennial legal advisory mechanism, and turn risk prevention into "compliance insurance".

The insurmountable red line of compliance operation: regulations and punishment standards for the management of the printing industry

The printing industry is an important position for ideological and cultural dissemination and a key link in intellectual property protection. In order to strengthen management, protect legitimate rights and interests, and safeguard social and public interests, our country implements strict legal supervision of printing business activities. Understanding and complying with relevant laws and regulations is not only the legal obligation of printing enterprises, but also the fundamental guarantee for the stable operation and risk avoidance of enterprises.

According to Article 5 of the Regulations on the Administration of the Printing Industry, printing industry operators shall establish and improve the printing verification system, the printing registration system, the printed matter storage system, the printed matter delivery system, and the printing activity defect destruction system. The specific measures shall be formulated by the publishing administrative department of the State Council.

If printing industry operators discover illegal or criminal acts in printing business activities, they shall promptly report to the public security department or the publishing administrative department.

01

Article 39 of the Regulations on the Administration of the Printing Industry

Article 39 of the Regulations on the Administration of the Printing Industry Where a printing industry operator commits any of the following acts, the publishing administrative department and public security department of the local people's government at or above the county level shall order corrections and give a warning in accordance with their statutory powers; If the circumstances are serious, order the suspension of business for rectification or the original issuing authority to revoke the license:

(1) Failure to establish a printing verification system, a printing registration system, a printed matter storage system, a printed matter delivery system, and a system for destroying defective products from printing activities; ……

02

Article 40 of the Regulations on the Administration of the Printing Industry

Article 40 of the Regulations on the Administration of the Printing Industry If an enterprise engaged in publication printing business activities commits any of the following acts, the publishing administrative department of the local people's government at or above the county level shall give a warning, confiscate illegal gains, and impose a fine of not less than 5 times but not more than 10 times the illegal turnover; if the illegal business turnover is less than 10,000 yuan, a fine of not less than 10,000 yuan but not more than 50,000 yuan shall be imposed; if the circumstances are serious, order the suspension of business for rectification or the original issuing authority to revoke the license; If a crime is constituted, criminal responsibility shall be pursued in accordance with law:

(1) Accepting the commission of others to print publications without verifying the printing power of attorney, relevant certificates, or quasi-sealing certificates in accordance with the provisions of these Regulations, or failing to report the printing power of attorney to the publication administrative department for the record; ……

03

Article 41 of the Regulations on the Administration of the Printing Industry

Article 41 of the Regulations on the Administration of the Printing Industry If an enterprise engaged in the printing and business activities of packaging and decoration printed materials has any of the following acts, the publishing administrative department of the local people's government at or above the county level shall give a warning, confiscate the illegal gains, and impose a fine of not less than 5 times but not more than 10 times the illegal business turnover if it has an illegal business turnover of more than 10,000 yuan; if the illegal business turnover is less than 10,000 yuan, a fine of not less than 10,000 yuan but not more than 50,000 yuan shall be imposed; if the circumstances are serious, order the suspension of business for rectification or the original issuing authority to revoke the license; If a crime is constituted, criminal responsibility shall be pursued in accordance with law:

(1) Accepting an entrustment to print a registered trademark logo without verifying or verifying a copy of the Trademark Registration Certificate, a registered trademark drawing, or a copy of the registered trademark license contract signed by the administrative department for industry and commerce in accordance with the provisions of these Regulations;

(2) Accepting entrusted printing of advertising materials or printed materials used as product packaging and decoration, failing to verify the business license of the entrusted printing unit or the individual's resident ID card in accordance with the provisions of these Regulations, or accepting the entrusted printing of advertising materials from advertising operators without verifying the advertising business qualification certificate;

(3) Illegally printing other people's packaging and decoration printed materials;

(4) Accepting the commission to print overseas packaging and decoration printed materials and failing to file with the publishing administrative department in accordance with the provisions of these Regulations, or failing to transport all printed overseas packaging and decoration printed materials out of the country; ……

04

Article 42 of the Regulations on the Administration of the Printing Industry

Article 42 of the Regulations on the Administration of the Printing Industry If an enterprise or individual engages in any of the following acts, the publishing administrative department of the local people's government at or above the county level shall give a warning, confiscate the printed matter and illegal gains, and impose a fine of not less than 5 times but not more than 10 times the illegal turnover if the illegal business turnover is more than 10,000 yuan; if the illegal business turnover is less than 10,000 yuan, a fine of not less than 10,000 yuan but not more than 50,000 yuan shall be imposed; if the circumstances are serious, order the suspension of business for rectification or the original issuing authority to revoke the license; If a crime is constituted, criminal responsibility shall be pursued in accordance with law:

(1) Accepting entrustment to print other printed materials without verifying relevant certificates in accordance with the provisions of these Regulations; ……

05

Article 45 of the Regulations on the Administration of the Printing Industry

Article 45 of the Regulations on the Administration of the Printing Industry If a printing enterprise is subject to administrative penalties for revocation of licenses, its legal representative or responsible person shall not serve as the legal representative or responsible person of the printing enterprise for 10 years from the date of revocation of the license.

If an individual engaged in other printing business activities is subject to an administrative penalty of license revocation, he or she shall not engage in printing business activities for 10 years from the date of revocation of the license.

The law is not only the bottom line of behavior, but also the compass of sound operation. For printing enterprises, strictly abiding by the "Regulations on the Administration of the Printing Industry" is not only a "firewall" to avoid legal risks and prevent major losses, but also a "cornerstone" to establish corporate reputation and win market trust. This article hopes that printing business operators can understand the requirements of laws and regulations, integrate compliance awareness into every link of daily operation, jointly maintain a good industry order, and achieve the healthy and long-term development of enterprises in law-abiding operations.