Jiale Toys Industrial, a company based in Shantou, had been authorised to make Peppa Pig products but a court has now ruled that the firm produced the toys beyond the time and scope detailed in the contract.

A separate company, Jufan Limited of Shantou, then sold unauthorised Peppa Pig products made by Jiale.

Ye Shengnan, the judge in the case, said: “This case is a landmark in the way that it serves as a warning to the chaotic market, and it’s the first ruling on production copyright infringement.”

Jiale was fined 120,000 yuan (£13,600) while Jufan was ordered to pay 30,000 yuan.

Chinese authorities have strengthened copyrights protections in recent years to smooth trade relations, setting up special courts for IP disputes.

Entertainment One, the British company behind Peppa Pig, said the ruling sent “the right message to the market about copyright protection”.