China, once a hotbed of counterfeits worldwide, has recently waged a war against knockoffs to protect its own brands. As domestic brands also begin to suffer from fake goods, China appears intent on shedding its image as a country of technology theft and counterfeit manufacturing.
On the 9th, the British weekly The Economist said, "In recent years, China's lax trademark and patent protection system has increasingly become a problem for Chinese corporations themselves," and reported, "Manufacturers of various products are fighting to protect their intellectual property, and the fight is now spreading around the world."
One of the flagship products that Chinese authorities have recently focused on to stop the production of counterfeits is the "Labubu" doll from Chinese character corporations Pop Mart. As Labubu has gained worldwide popularity, factories in China are mass-producing Labubu counterfeits known as "Lapupu." In the market, in addition to "Lapupu," dolls with names and appearances similar to Labubu—such as Latutu and Lababa—are appearing one after another.
Since last year, Chinese authorities have been conducting a "catch Lapupu" campaign and stepping up crackdowns. In July last year, Shanghai police uncovered that a local company was storing a large quantity of fake toys worth 12 million yuan (about 2.5 billion won). The same month, China Central Television (CCTV) reported that "Lapupu" counterfeit dolls slated for export overseas were seized at customs. The Chinese government is also said to be shutting down online shops that sell fake dolls.
According to The Economist, not only Labubu dolls but also manufacturers of various products are waging a war against knockoffs. Li Hongzhang, an executive at the Beijing law firm Guantao, said he is representing a motorcycle manufacturer in the southwestern city of Chongqing in fighting factories that copy its motorcycles. He said that as soon as they win a lawsuit against one factory, another starts making fake products.
Paradoxically, the reason China is waging a war against knockoffs is that China is a major production base for counterfeits of its own brands. For a long time, China leveraged its solid manufacturing base to steal foreign technology or produce counterfeit versions of overseas brand goods. But recently, as domestic brands have gained recognition in global markets, Chinese corporations themselves are increasingly becoming victims of counterfeits.
Lawsuits related to counterfeits are also surging in China. Intellectual property lawsuits pending in Chinese courts now exceed 550,000 cases a year. Shanghai, with many judges well-versed in intellectual property, has become a hub for such cases, but with the caseload piling up, it reportedly takes about three months for a suit to be placed on the court's docket.
As counterfeits of Chinese brands spread around the world, disputes over intellectual property are increasing overseas as well. According to data collected by the Chinese law firm GEN, in the United States, patent-related lawsuits involving Chinese corporations jumped 56% in 2023. Many of these cases were related to counterfeit goods sold on Amazon, the U.S. e-commerce platform, and lawsuits tied to communications and electronic equipment are also continuing.
As more Chinese corporations expand overseas, cases in which Chinese corporations directly file intellectual property lawsuits are expected to increase further. Last year, Luckin Coffee, China's largest coffee franchise, filed a lawsuit against a Thai company that used its trademarks and other rights and won. China's renewable energy corporation Trina Solar also filed an intellectual property infringement suit against Canadian Solar, an Ontario-based competitor that manufactures most of its solar panels in China.