In the fast-growing world of cross-border e-commerce, sellers are under increasing pressure to deliver unique products at speed — often at the expense of proper legal checks. Recently, a seller was fined ¥20,000 for selling unauthorized LABUBU doll outfits, highlighting how easy it is to fall into intellectual property (IP) traps.
This article explains what happened in the LABUBU infringement case and provides practical, legally sound strategies for cross-border sellers to stay compliant and avoid costly mistakes.
⚠️What Happened in the LABUBU Infringement Case?
LABUBU is a highly recognizable IP character under the POP MART brand, widely popular across Asia and beyond. A Chinese cross-border seller was found selling unauthorized, copycat LABUBU doll clothing on an international e-commerce platform. The court determined:
- The products violated copyright through design imitation.
- The seller had no brand authorization or licensing.
- The act constituted unauthorized commercial use of protected artwork.
As a result, the seller was fined ¥20,000 (approximately $2,800 USD), and the products were taken down. Their storefront credibility and rankings suffered significantly.
Key Takeaways for Cross-Border Sellers
This isn’t just about LABUBU — any seller dealing with branded characters, images, or unique product designs is exposed to similar legal risks. Let’s break down how you can protect your business and build trust through legal compliance.
1. Verify IP Ownership Before Listing Any Product
Before you sell any branded or visually unique product, you must verify:
- Trademark registration (check WIPO, USPTO, CNIPA, EUIPO)
- Copyright ownership (for artwork, images, packaging)
- Patent or design rights (for product shape or function)
Use trusted tools:
| Type | Verification Source |
| Trademarks | WIPO, USPTO, EUIPO |
| Copyrights | National IP Offices, artist licensing agencies |
| Patents | Google Patents, CNIPA |
Pro tip: If a product looks “too branded” or has any association with anime, games, fashion IPs, or toy characters — double-check its legal status before sourcing or listing.
2. Get Written Authorization for Any Branded Product
If you’re working with suppliers, always ask for:
- Official authorization letters
- Licensing agreements
- Distributor contracts
Checklist for supplier compliance:
- Brand authorization must include logo, signature, and validity dates
- Verify with the brand or use a third-party authentication service
- Keep digital and printed copies in case of platform disputes
Never rely on verbal claims like “This is safe” or “Everyone else sells it.” Platforms and legal systems require documented proof.
3. Understand the Legal Rules in Your Target Market
Legal standards for IP protection vary by country. Here’s a quick overview:
| Region | IP Protection Highlights |
| USA | DMCA takedown system, strict copyright laws |
| EU | Unregistered design rights protect original looks for up to 3 years |
| Japan | Highly protective of character design rights |
| China | Strong enforcement of registered trademarks |
If you’re shipping to multiple countries, review each region’s IP laws or consult an international IP attorney.
4. Respond Quickly to Infringement Complaints
If you receive a platform warning or legal notice:
- Immediately unlist the product
- Check the complaint source (brand, law firm, competitor?)
- Assess the validity of the claim
- Submit a counter-notice only if you have evidence
- Consult legal help before responding formally
Failure to respond can lead to:
- Store suspension
- Listing bans
- Loss of funds
- Legal proceedings
5. Invest in Your Own Brand & IP Assets
The best long-term solution? Build your own intellectual property.
- Register your own brand trademarks in key markets
- Apply for design patents if you sell unique products
- Join platform brand protection programs (e.g. Amazon Brand Registry)
Owning your IP lets you defend yourself, differentiate your store, and even take action against counterfeiters.
Conclusion
The LABUBU infringement case is a reminder that ignorance of IP law is no excuse. Whether you’re dropshipping, wholesaling, or manufacturing your own products, legal risk management is a core part of your business.
By doing due diligence, verifying suppliers, securing authorization, and responding quickly to issues, you can:
- Avoid fines and store shutdowns
- Protect your reputation
- Win customer trust and platform support
