‘No one-size-fits-all’: A Chinese TM expert on fighting fakes

Ahead of WIPR’s Trademark & Brand Protection Summit, Wanhuida partner Wei He shares a preview of his deep dive into the global counterfeiting crisis.

Counterfeiting in China remains a major global issue. A 2025 OECD and EUIPO report on 2021 data found that China and Hong Kong were the source of 45% and 27% of the total value of seized counterfeit goods, respectively.

Meanwhile, US Customs and Border Protection data for 2024 show that China and Hong Kong together accounted for nearly 90% of the total value of counterfeit and pirated goods seized.

Despite some improvements in enforcement, the country continues to be the epicentre of counterfeit production.

These goods range from luxury items and electronics to toys and pharmaceuticals, with many posing serious safety risks.

While authorities have intensified crackdowns, enforcement remains inconsistent, particularly for foreign brands—and counterfeit goods are still widely accessible through both online and offline channels.

Speaking at WIPR’s Trademark & Brand Protection Summit (San Francisco, October 28–29) Wei He, partner in Wanhuida’s Beijing office, will explore a case study: Combating Counterfeiting and Trademark Infringement in China.

His expertise spans IP enforcement and disputes, including trademarks, geographical indications, copyrights, domain names, unfair competition, and licensing.

Among his key victories are securing RMB 15 million ($2.1 million) in trademark litigation damages as well as precedent-setting rulings relating to trade dress and geographical indication protection.

WIPR sat down with He to address the key questions posed by the counterfeiting crisis, and what he hopes to address during the conference.

WIPR: How significant is the counterfeit goods problem in China today, and which sectors are most affected?

Wei He: Counterfeiting remains a big challenge in China, though its nature has evolved. High-value consumer goods—luxury fashion, cosmetics, automotive parts, electronics, and pharmaceuticals—are prime targets. The shift toward online sales has amplified risks for smaller consumer goods brands as well, given the sheer scale and speed of e-commerce platforms.

Are counterfeiters in China becoming more sophisticated (eg, better packaging, use of online platforms, hiding supply chains)?

Absolutely. They copy packaging perfectly, mimic anti-counterfeit features, hide supply chains, and use multi-platform, cross-border sales channels to avoid detection.

Moreover, besides the pure counterfeits, we are seeing a broader trend of ‘dupes’ in the fashion, beauty and food sectors—products that avoid directly using a brand’s trademarks but imitate the trade dress to suggest a cheaper alternative.

These ‘dupes’ present an even greater enforcement challenge, as proving trade dress infringement in China often requires more evidence and legal effort than tackling straightforward counterfeits.

How have Chinese government efforts evolved over the past five years to combat large-scale counterfeit networks?

There’s been a noticeable shift from isolated crackdowns to more coordinated, large-scale campaigns. National strategies often focus on specific sectors—such as e-commerce, food safety, and other high-risk industries.

Enforcement authorities increasingly collaborate with online platforms and leverage big data analytics to track suspicious trade flows, map supply chains, and identify the large-scale counterfeiters operating behind the scenes.

Have recent legal changes improved liability for platforms that host counterfeiters?

The core principle remains unchanged—platforms are still protected under the ‘safe harbour’ rule. They are generally not liable for counterfeit sales by their users unless they fail to act promptly to remove infringing listings after receiving notice from brand owners.

Are there practical tips for improving the success rate of customs seizures, such as monitoring or coordination with authorities?

Proactive recordation of trademarks with China Customs, continuous training sessions for customs officers on product identification; real-time communication channels with customs for rapid alerts; and coordinated market intelligence sharing to assist more accurate seizures by Customs.

What enforcement route do you recommend in China for serious trademark infringement: administrative raids, civil litigation, or criminal prosecution?

There is no ‘one-size-fits-all’ solution—each enforcement route has its strengths and limitations.

• Administrative raids are fast and cost-effective, but less effective against complex infringement schemes and cannot award damages.
• Civil litigation provides comprehensive coverage—ideal for recovering damages and setting legal precedent—but often lengthy and costly.
• Criminal prosecution remains the strongest deterrent, but requires higher evidentiary thresholds and precise value calculations.

In practice, a tailored, mixed approach (designed around the specific facts of the case and the client’s objectives) often delivers the most effective results.

What are the challenges foreign rights owners face when trying to initiate criminal enforcement?

Foreign brands often hit a wall in criminal cases due to high thresholds, tough evidence gathering, and uneven local prioritisation.

Challenges include:

• A high threshold for initiating a criminal case, typically based on the calculated value of the counterfeit goods.
• Significant challenges in intelligence gathering, especially when it comes to locating counterfeiters and quantifying their sales volumes.
• Resource allocation issues, as local enforcement bodies may prioritise other cases—making it essential to build strong, ongoing working relationships with local authorities.

What are the most effective ways to monitor the Chinese market for infringing or counterfeit goods?

Effective market monitoring in China often requires a tailored mix of strategies based on the brand’s specific counterfeiting challenges, including dedicated online monitoring teams for e-commerce and social media; test purchases to uncover supply chain details; partnering with investigators who understand regional counterfeit networks, and AI-based tools for image recognition and keyword tracking.

How can brands collaborate with local law enforcement or administrative bodies to build long-term anti-counterfeiting strategies?

Long-term success comes from partnerships, so train local authorities, share intelligence, and work through trusted industry channels.

In addition, focus on long-term relationship-building with enforcement bodies through training and joint campaigns, share product authentication guides and intelligence on evolving counterfeiting tactics, and participate in industry associations that liaise with government bodies.

Are brand owners using technology (eg, blockchain, serialisation, image recognition) to fight counterfeiting more effectively in China?

Brands are increasingly adopting blockchain-based evidence preservation tools, QR code authentication, and artificial intelligence (AI)-powered monitoring tools. While technology isn’t a silver bullet, it significantly enhances the credibility of enforcement evidence and consumer engagement in authentication.

What are you most looking forward to during the Trademark & Brand Protection Summit in San Francisco?

I’m excited to exchange real-world enforcement strategies with global brand owners, explore how AI and technology are reshaping anti-counterfeiting efforts, and strengthen collaborations between international stakeholders to address cross-border infringement challenges.

WIPR Trademark & Brand Protection Summit: Safeguard your brand: Strategies & tactics for an evolving IP landscape takes place on October 28–29 at the Hyatt Regency, San Francisco.

Watch out for Wanhuida’s ranking in China Trademarks coming soon...

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