The most common IP problems in China include trademark squatting under the first-to-file system, counterfeit goods dominating online and offline markets, and risks from local partners misusing brand assets. Weak enforcement and regional disparities make litigation difficult, while counterfeits—86% of which originate in China and Hong Kong—erode margins and brand trust. To achieve effective IP protection in China, companies must register trademarks and patents early, run regular online audits, use contracts with local partners, and act through oppositions, cancellations, customs, or civil litigation when violations occur.
Why IP Protection in China Matters
China’s market offers extraordinary opportunities, but it also carries risks for foreign companies. The first-to-file trademark system allows opportunists to register a brand before the rightful owner, blocking imports, exports, or even domestic sales. Add to that the massive counterfeit industry—worth an estimated $461 billion, 2.5% of world trade—and the stakes become even clearer.
Counterfeits don’t just appear in backstreet markets anymore; they dominate online platforms, social media, and rogue websites. Studies show 86% of the world’s counterfeit goods originate in China and Hong Kong. Almost every sector is affected, from fashion to electronics. For any brand entering the market, protecting IP is not optional—it’s survival.
Without strong IP protection in China, businesses risk:
- Losing access to their own brand in a key market.
- Facing unfair competition from counterfeiters and rogue sellers.
- Suffering damaged reputation and lost revenue globally.
Taking proactive preventive steps and enforcing rights consistently helps safeguard long-term growth in one of the world’s most competitive markets.
Common IP Problems in China
1. Trademark Squatting
In China, whoever files first owns the rights. Opportunists monitor exhibitions, websites, and promotional campaigns, rushing to register trademarks before legitimate owners. These squatters can block imports, disrupt exports, and even hold brands hostage in the very market where their products are made.
2. Partner-Related Risks
Sometimes the danger comes from within. Business partners, suppliers, or local staff may misuse confidential information or quietly register your IP in their own name. Without airtight contracts and oversight, the very people you trust can become your biggest risk.
3. Counterfeits and Piracy
Counterfeiting is a global plague, and China sits at its center.
- In 2013, counterfeit and pirated goods represented $461 billion—2.5% of world trade and 5% of EU imports.
- 86% of counterfeit products worldwide originate from China and Hong Kong.
- Counterfeits now flood online channels, marketplaces, rogue websites, apps, social media, and classified ads, affecting virtually every sector.
Preventive Measures for Stronger IP Protection in China
Register Early and Broadly
Foreign registrations don’t count in China. Trademarks, patents, designs, and copyrights must be filed locally.
- Trademark registration takes 9–12 months, but EU companies can claim priority if they file within 6 months of their European application.
- Inventions are protected for 20 years, utility models for 10 years, and designs for 10 years.
- Copyright lasts 50 years, with special registration available for software.
Audit Online and Offline
Counterfeits thrive in visibility. Run regular audits:
- Search marketplaces, social media, and forums for fakes.
- Look for misspellings, translations, and generic keywords tied to your brand.
- Investigate trade fairs like Canton Fair or Shanghai International Technology Fair, where infringing products often surface.
Strengthen Partnerships
- Use NDAs, non-compete agreements, and licensing contracts with factories.
- Conduct factory and distributor audits to ensure compliance.
- Investigate trade fairs like the Canton Fair or Shanghai International Technology Fair, where infringing products are often displayed.
Reactive Measures When Violations Occur
Even with preparation, IP violations are common. Companies can respond through:
- Opposition filings within 3 months of trademark publication.
- Non-use cancellation if a mark hasn’t been used for 3 years.
- Invalidation for bad-faith registrations.
- Customs enforcement, civil litigation, or even criminal proceedings against counterfeiters.
For brands that need expert support beyond legal procedures, specialized partners like Brand Alignment’s Counterfeit Protection and Trademark Infringement services provide end-to-end monitoring, enforcement, and removal strategies to defend intellectual property and restore control in the Chinese market.
Where Counterfeits Appear Online in China
One of the biggest challenges for IP protection in China is that counterfeits don’t just circulate in street markets—they thrive online. Understanding where they appear is the first step to controlling the problem.
Counterfeit goods often surface on major B2B marketplaces such as Alibaba, Made-in-China, and Global Sources, where bulk listings make it easy for unauthorized sellers to operate.
On the consumer side, C2C and B2C platforms like Taobao, JD.com, Tmall, and LightInTheBox are common hotspots for fakes, competing directly with authentic listings.
Social networks add another layer of complexity. Weibo is often used to promote counterfeit items, while WeChat groups and mini-programs allow private, small-scale sales that are difficult to monitor.
For brands, staying alert across these online ecosystems is essential. Monitoring these channels regularly helps detect infringements early and provides the evidence needed for takedown requests and legal enforcement.
IP protection in China is not a legal formality—it’s a survival strategy. Brands that act early, monitor constantly, and enforce decisively can secure long-term growth. Those who wait often find themselves fighting to reclaim their own name.
Brand Alignment 