Think It’s Just a Copycat? Why Many ‘Infringers’ in China Aren’t What They Seem

Written by Dr. Jian Xu, IP Expert and collaborator of the China IP SME Helpdesk.

Who this is for: Founders, brand owners, in-house counsel, and global business leaders navigating IP enforcement in China.

When global companies first encounter an IP issue in China, the instinctive reaction is often: “Another copycat.” But in reality, many so-called infringers aren’t simple counterfeiters. They may be former distributors, OEM partners, local innovators, or even rights holders themselves. Misreading who’s on the other side can turn a winnable IP issue into a prolonged, costly, or reputationally damaging conflict.

Understanding the profiles behind “infringers” is critical to choosing the right enforcement strategy.

1. The Former Partner Turned Competitor

Not all disputes start with strangers. In China, it’s common to find an “infringer” who once worked with the brand:

• A former distributor still selling stock — but without authorization.
• An ex-OEM manufacturer producing beyond contract quantities (“overruns”).
• A JV partner registering trademarks in its own name.

Strategic takeaway: These cases call for a mix of contract enforcement and IP enforcement. Purely legal tactics may overlook the business leverage you still hold.

2. The Trademark Squatter as “Owner”

Another scenario: the “infringer” actually holds a registered right in China. Many foreign companies discover their Chinese brand names registered years earlier by local entities. In such cases, sending a cease-and-desist letter may backfire, because legally the squatter has the upper hand — at least until you challenge the mark.

Practical focus: Success here often comes through non-use cancellation actions, invalidation actions, bad-faith claims, or even negotiated buy-backs. Consider also filing alternative trademarks, including Chinese versions, to expand leverage and create fallback options. A combination of these tactics greatly increases the chance of success.

3. The Parallel Importer

Some infringers are trading in genuine goods, imported outside of official distribution channels. Under China’s “exhaustion of rights” principle, parallel imports may not even infringe IP rights.

Strategic takeaway: Enforcement may be limited. Instead, businesses often manage this risk by tightening distribution contracts, adjusting pricing, or using product differentiation for the Chinese market.

4. The Local Innovator With Overlapping Rights

Sometimes, the alleged infringer is not copying at all, but has independently developed technology or branding that overlaps with yours. China’s fast-moving innovators, especially in tech and consumer products, may collide unintentionally with foreign rights holders.

Case example: A European fitness brand accuses a Chinese startup of copying its wearable tracker. But diligence shows the Chinese company has its own patents covering key features — filed even earlier in China. What looked like a copycat was actually a competitor with defensible IP.

5. The Opportunistic Counterfeiter (The True Copycat)

Of course, there are still plenty of traditional counterfeiters. Street markets, online sellers, and organized factories continue to produce look-alike goods. These are the most straightforward cases for enforcement. Yet even here, strategy matters: administrative raids may work better for small actors and clear-cut cases, while civil litigation or customs seizures are often more effective against larger networks.

Why This Distinction Matters

Labeling every infringer a “copycat” risks:

• Choosing the wrong enforcement path (e.g., suing a trademark squatter instead of challenging their registration).
• Damaging business relationships (e.g., overreacting against a former partner who could be negotiated with).
• Underestimating real competitors who hold their own defensible rights.

Effective enforcement in China starts with a careful profile of the alleged infringer. Only then can businesses decide whether to negotiate, litigate, invalidate, raid, or restructure relationships.

Strategic Takeaway

In China, infringers wear many faces. Some are true counterfeiters, but others are partners, registrants, parallel traders, or innovators in their own right. Treating them all as simple “copycats” is a costly mistake.

The smarter approach is to diagnose before acting: know who you’re dealing with, understand their leverage, and align your enforcement tools with both the legal and commercial realities.

That’s how global brands turn IP enforcement in China from a whack-a-mole game into a strategic advantage.