Chinese social media platforms such as WeChat, Weibo, Douyin (the Chinese version of TikTok) and Xiaohongshu (Little Red Book) have exploded in recent years and transformed the daily lives of Chinese consumers. At the same time, they also provide significant opportunities for businesses to promote their products, build brands and interact with vast audiences across China. However, IP challenges have also escalated, making protection on Chinese social media a critical issue for creators and businesses alike.
A brief history of trademark protection in China
China has made considerable progress in recent years to improve its IP protection framework, with regular updates to its laws and enforcement frameworks. However, infringements on social media platforms have become prevalent with the selling of counterfeit products and plagiarism of creative content.
China's legal framework surrounding trademark protection on social media is governed by several key regulations:
Trademark Law – under China's Trademark Law, rights holders can pursue legal action if their trademarks are being used without authorisation on social media platforms.
E-Commerce Law – China's E-Commerce Law, which has been effective since 2019, specifically outlines the responsibilities of online platforms for preventing and addressing IP infringement. It mandates that platforms take prompt action when violations are reported and imposes penalties for non-compliance.
Common violations on Chinese social media
Trademark infringement
One of the most widespread forms of IP abuse on Chinese social media is trademark infringement. Brands – particularly foreign brands – often find counterfeit or unauthorised products being promoted using their logos, designs or brand names.
Counterfeit products
Platforms are often used by sellers to advertise counterfeit luxury items, electronics and fashion. The anonymity afforded by these platforms, along with lax enforcement in certain areas, makes it easy for counterfeiters to evade detection.
Social media platforms are taking action
Having recognised the growing threat of IP violations, Chinese social media platforms are taking steps to enhance trademark and brand protection. Recent cases such as Louis Vuitton v Xiaohongshu, Jay Chou v Douyin and Wang Sicong v Douyin highlight platforms' obligations to monitor third-party content and take responsibility for violations that occur. These cases covered trademark rights, copyright and even personal rights, and resulted in platforms monitoring content more rigorously. While they are developing mechanisms to address these concerns, however, enforcement remains an ongoing challenge. There are several ways in which they are taking action:
Reporting and takedown systems – Chinese platforms have reporting systems that allow users or rights holders to report infringing content. Rights holders can file trademark infringement complaints; once verified, the infringing content is often removed and the offending account may be suspended or banned.
Tech solutions – some platforms have adopted AI and machine-learning tools to detect and prevent infringing content or sales of counterfeits. Douyin, for example, uses content-recognition algorithms to identify and flag videos that use unauthorised music or video clips, while other platforms may use image recognition to spot counterfeit logos and trademarks.
Verification programmes – platforms like WeChat have introduced verified accounts and official brand pages to help users distinguish between legitimate sellers and counterfeiters. Verified accounts are provided with additional IP protection tools and users are more likely to trust content from verified sources.
Enforcement against infringers
Brand owners need to be aware of the legal landscape and take action where required, and Chinese authorities are providing increased support to rights holders. For example, the courts protected the LAFITE trademark in a case where Chinese companies were found using the "Lafite Chateau" name to falsely promote and sell wine online. The court found these actions to be wilfully misleading, applying punitive damages to the defendants.
Similarly, courts have shown to be quick to act against false advertising and misleading promotions on social media platforms. In both the judicial and administrative realm, Chinese authorities are increasingly vigilant about protecting trademark rights on digital platforms, ensuring that violators face legal repercussions and substantial financial penalties. This shift is crucial as China aims to foster a more innovative and competitive business environment.
How to protect trademark rights in China
Register rights
Before taking any action, make sure that you have registered your trademarks in China. Proof of ownership is required when submitting takedown complaints directly with the platforms and filing legal action.
Work with a local firm
Collaborating with local law firms that specialise in intellectual property and online brand protection can be effective and help to navigate the complexities of China's legal system. Look for firms that implement automated tools to scan platforms and have experience with filing platform complaints and pursuing legal action.
When platform takedowns are not enough, you may need to consider administrative and judicial action. Court or administrative orders can lead to more significant consequences, such as fines, financial compensation and public apologies. Punitive damages are being increasingly applied by courts, especially in cases where infringement is found to be intentional or repeated. Criminal action may be an option as well.
To strengthen your case, you'll need to collect solid evidence, so finding a firm with in-house investigators is also recommended.
Regular monitoring
Ongoing monitoring of platforms is crucial for catching new infringers. This can be done in-house and through local counsel:
Manual search and monitoring – utilising platforms' search functionality can help to identify infringement. You can use keyword searches, hashtags or trends to find posts and videos that might infringe on your rights.
Search for common misspellings – infringers may slightly alter a brand name to evade detection, so search for variations.
Track suspicious sellers – often, influencers or vendors promoting counterfeit goods use vague brand references. Monitoring accounts that frequently post product promotions can help identify potential infringers.
Tracing targets – many counterfeit sellers redirect customers to e-commerce platforms like Taobao, Pinduoduo or JD.com. Follow these links to gather more evidence. This cross-platform activity can provide insights into the scale of infringement and help to report more effectively.
Collect and submit evidence
When reporting issues, include detailed evidence such as screenshots, product listings and URLs to ensure faster action. Collection of sufficient evidence is also crucial in case further steps are required, such as administrative or judicial action.
Carefully utilise cease-and-desist letters
Cease-and-desist letters can be an efficient way to stop infringing sellers or influencers promoting counterfeit goods. However, it is important to secure evidence before sending letters as infringers may become more covert in their activities upon notification, ignoring demands to cease while making evidence collection more difficult.
Educate your audience
To minimise the impact of counterfeiters, it is crucial to educate your customer base on how to recognise genuine products. Use official social media accounts to provide tips on identifying authentic items and warn against counterfeit sellers. This can reduce consumer demand for infringing goods and lead to more reports.
Collaborate with key opinion leaders
Infringers often use influencers to promote counterfeit products. Collaborating with legitimate influencers who can raise awareness about your brand and authentic products will help to combat counterfeits and reduce demand. Influencers can also report suspicious posts promoting knock-offs of your products.
Work with Chinese authorities
Collaborating with Chinese regulatory bodies such as the State Administration for Market Regulation, local IP offices and customs can lead to more robust enforcement. Administrative authorities can also investigate and punish infringers.
Key takeaways
China is updating its laws and regulations to keep up with the modern world, while Chinese courts are actively involved in shaping the legal landscape, holding platforms accountable for ensuring compliance with IP laws. Therefore, as social media platforms continue to grow, we can expect more IP-related cases with decisions that will likely further refine the responsibilities of both platform operators and content creators. Legislative amendments that aim to better clarify violations and enforcement can also be expected.
While combatting infringement on China's social media platforms can be challenging, it is achievable through a combination of legal, technical and collaborative measures.
This article is first published at: https://www.worldtrademarkreview.com/article/best-practices-protecting-trademarks-chinese-social-media-infringement-threats-increase
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.