Ai Miracle's global anti-counterfeiting and rights protection report card: expanding global law enforcement cooperation, 229 targets for manufacturing and selling counterfeits were terminated.

Love Miracle takes active actions and cooperates with many parties to fight against global counterfeiting, selling, illegal trade and trademark infringement of electronic atomized products.

On April 26, on the World Intellectual Property Day, Love Miracle announced the report card of the stage of global fight against counterfeiting and illegal trade. Since June 2021, in China, the company has cooperated with local public security organs and authorities to shut down a total of 229 targets of counterfeiting; in various global markets, the company has also actively adopted such means as cooperation with regulatory and law enforcement authorities, prosecution of trademark infringement, and identification of counterfeit goods in retail channels, to protect the legitimate rights and interests of consumers, safeguard the brand's reputation, and defend the healthy development of the industry.

"ELFBAR and LOST MARY, the global leading brands under Love Miracle, have taken action to join hands with global regulatory agencies, industry associations, wholesalers, retailers and consumer organizations to curb the spread of illegal electronic atomized products", Victor Xiao, Global Vice President of Love Miracle, said in this regard.

Since mid-2021, in China, Ai Miracle has been collaborating with public security organs and authorities to fight against the target of electronic atomization production and sale of counterfeits. Up to now, the company has cooperated with law enforcement authorities to jointly combat and shut down 229 enterprises in the chain of manufacturing and selling counterfeits, including counterfeiting factories, warehouses, traders, and logistics enterprises, and has seized millions of counterfeit ELFBAR, EBDESIGN, and LOST MARY brands; in addition to tens of millions of semi-finished products, packaging boxes, pipes, and anti-counterfeiting codes, among others.

In 2022 alone, the number of criminal cases involving ELFBAR and LOST MARY for counterfeiting of registered trademarks and illegal business is as high as 118. Currently, the vast majority of counterfeiting dens have been moved to Southeast Asia, resulting in a large number of counterfeits being assembled and smuggled to a number of markets around the world, including the United States, Europe, the Middle East, Russia and South Africa.

Love Miracle actively cooperates with domestic public security and tobacco authorities in their actions and strives to minimize the harsh impact of counterfeits on the global industry.2023 In April 2023, the Tobacco Monopoly Bureau of Yuanjiang City, Hunan Province, together with the Public Security Bureau of Yuanjiang City, mobilized more than 50 law enforcement officers to complete the netting and arresting of a case of counterfeiting and selling of counterfeits in Yuanjiang, Hunan Province; Dongguan, Guangdong Province; Changsha, Hunan Province; and Beihai, Guangxi Province, respectively. The case involved four links of production, transportation, storage and sales. During the operation, the law enforcement officers seized two production workshops, two raw material warehouses and one equipment warehouse, and seized more than 60,000 pieces of counterfeit finished products of ELFBAR and LOST MARY.

The case locked up 40 suspects, of whom 20 were arrested, 17 detained and 3 prosecuted directly. The value of the goods in the case was about RMB 15 million, and the amount of money involved was over RMB 100 million. The case is currently under further trial.

Another counterfeiting case occurred in January 2023, in which the Public Security Bureau of Nanyang City, Henan Province completed the closing and arresting operation of manufacturing and selling counterfeits in three locations, including Dongguan and Shenzhen, Guangdong Province, respectively. The case involved the production and sale of raw materials for external packaging, the production and sale of disposable electronic atomized products and logistics and transportation, and a total of more than 40,000 pieces of counterfeit finished products of ELFBAR and Lost MARY were seized, and the packaging boxes were seized at the scene More than 150,000 pieces.

At present, two suspects involved in the case were found guilty of counterfeiting registered trademarks by the court, and were sentenced to four years and six months of imprisonment and a fine of 100,000 yuan, and one year of imprisonment, two years of probation and a fine of 25,000 yuan, respectively; the case of the other suspect is under trial.

In addition, Love Miracle also actively utilizes legal weapons to safeguard its legitimate rights and interests. Up to now, the company has received a total of 75 effective criminal judgments in China, and 181 infringers have been sentenced to criminal liability. The highest sentence for the infringers was eight years of imprisonment, and the highest fine was 2.2 million yuan; on the issue of domain name and website infringement, the company filed a total of 24 domain name arbitration cases, and Ai Miracle demanded the infringers to transfer the infringing domain names back to the company's name, which were all won, and at the same time, the company complained about the infringing links of more than 3,600 items.

At the global level, ELFBAR and LOST MARY, two brands under Love Miracle, are also actively cooperating with various market regulation and intellectual property rights departments to strengthen the fight against counterfeiting and other illegal products within markets such as the United Kingdom, the Netherlands, the Czech Republic, Slovakia, and the United Arab Emirates, and to jointly tackle the rampant counterfeiting and the proliferation of illegal trade around the world.

In the UK, ELFBAR and LOST MARY have supported a joint campaign by the ACS (Association of Convenience Stores) and the SGF (Scottish Grocers' Federation). In partnership with FACT, the parties are working together to raise public awareness of illegal electronic fogging products and encourage local retailers and consumers to actively report illegal products through channels such as Crimestoppers.

"In the UK market, ELFBAR and LOST MARY have been advocating for a retailer licensing system to ensure that retailers are legally qualified to sell electronic atomized products." said Eve Peters, Director of UK Government Affairs at ELFBAR and LOST MARY.

Enforcement actions are more urgent in the Southeast Asian market. in October 2023, in the city of Bac Ninh, Vietnam, law enforcement authorities confiscated and destroyed more than 103,000 counterfeit e-nebulizer products, including 97,000 counterfeit ELFBARs, in a warehouse; and in another operation, more than 108,000 e-nebulizers were seized and destroyed, most of them under the EBDESIGN brand. Since May 2023, ELFBAR has reiterated its position several times to stop supplying products to the U.S., leaving a gap in the market for many counterfeits to take advantage of.

In Russia, 5,799 stores were found to be selling counterfeit ELFBAR and 1,287 stores were found to be selling counterfeit LOST MARY, and the Company has filed trademark infringement claims in multiple arbitration courts. To date, 1,217 valid judgments have been obtained from arbitration courts for ELFBAR and 29 for LOST MARY.

"While cooperating with various market regulators around the world to call for reasonable regulation of the electronic atomization industry and promote fairness and justice in the market, Love Miracle also calls on adult users to purchase the products from legal channels and carefully screen them before purchase." Victor Xiao also added that Love Miracle calls on the upstream and downstream of the global electronic nebulizer industry chain to work together, take more effective measures to combat the production and sale of counterfeit products and illegal trade behavior, and jointly promote the healthy and orderly development of the industry.