Watchdog shuts down South Korea counterfeit Scotch ring
A WHISKY trade body that acts as a watchdog against fake products has closed down a counterfeit Scotch operation in South Korea in a groundbreaking case.
In the first such case to use Scotch whisky’s South Korean certification trademark, which was granted in 2019, the Scottish Whisky Association said it has “successfully stopped the sale of fake Scotch whisky which misleads consumers and damages legitimate trade”.
The case centred on a brand called Dian The Legend Scotch Whisky, which the SWA said was labelled as having been produced in Jordan rather than Scotland, and with a strength of only 35% alcohol by volume (ABV) rather than the legal minimum of 40%.
The SWA’S legal team filed a criminal complaint against the seller, and following a letter of support from the British Embassy in Seoul, a raid was carried out on the seller’s premises, resulting in a significant number of fake Scotch whisky bottles bearing the brand being seized. The seller was charged and the case presented before Busan District Court.
The SWA said the court agreed the seller had infringed the Scotch shisky certification trademark and imposed an eight-month jail sentence on the company’s sole director, suspended for two years, and a fine of approximately £160,000. An appeal by the seller failed.
The South Korean market is the 15th largest in the world by value for Scotch whisky, and increased by 67% in 2023, compared to pre-pandemic levels.
With more than 14.3 million bottles exported to South Korea in 2023, and the broader Asia Pacific market the recipient of nearly one-third of all Scotch whisky exports last year, protecting consumer confidence in Scotch whisky is vital for continued growth. Caitlin O’donnell, senior legal counsel at the SWA said: “While South Korea is generally free of fake Scotch whisky, we work closely with our local agents and our member companies to investigate any suspicious products.
“We’re pleased that we were able to halt further production of this brand and remove it from shelves, ensuring that it can no longer take advantage of the reputation of Scotland’s national drink. Effective intellectual property protection, through legal frameworks such as certification trade marks and geographical indication status, allow us to protect Scotch whisky all around the world.”
The national asset is under attack from fake and illicit markets around the world including Russia and China.
The Herald also reported that Russia had a record year for imports despite companies’ self-imposed ban on exporting to the country following its invasion of Ukraine.
Customs figures from the Kremlin show whisky imports of more than $350 million in 2023, the highest to date.
Russia also increased its production of fake Scotch amid an international sanctions squeeze. The SWA made a record number of official objections about new Russian trademarks.
Recent figures showed the Scotch whisky industry contributed £7.1bn to the UK economy in 2022. The SWA report also showed that the industry supports 66,000 jobs across the UK, of which 41,000 are in Scotland.
The SWA said the basic definition of Scotch whisky is that it is made in Scotland from only cereals, water and yeast, matured for a minimum of three years in oak casks, bottled at a minimum strength of 40% ABV, distilled below 94.8% ABV so that it retains the flavour and aroma derived from its raw materials, and no flavouring or sweetening is permitted.