Pet owners shopping online may have noticed significant price variations for pet nutritional supplements, often accompanied by questionable packaging and unclear origins. The practice of "code-scraping" - illegally removing product traceability information to disrupt market order - has been identified as a primary culprit in these cases.
Guangdong Zhongchong Biological Technology Co., Ltd., manufacturer of the "Kaitasi" series of pet nutritional supplements, recently won a decisive legal victory against such infringement. This landmark case not only serves as a strong deterrent against similar violations but also provides valuable insights for brand protection in the pet nutrition industry.
The "Code-Scraping" Epidemic: Eroding Brand Value and Consumer Trust
On e-commerce platforms, unscrupulous merchants engage in "code-scraping sales" by removing traceable QR codes and erasing trademarks from genuine products, then selling them as unbranded goods at lower prices. This practice amounts to a low-cost deception with significant consequences:
- Brand value destruction: Code-scraping strips products of their brand identity, preventing consumers from verifying authenticity or accessing legitimate after-sales services.
- Consumer rights violations: Purchasers unknowingly receive altered products, compromising their right to accurate information and potentially exposing them to quality issues.
- Market disruption: These practices undermine established pricing structures and create unfair competition for authorized distributors.
Kaitasi's Legal Battle: Defending Brand Integrity
When confronted with code-scraping violations, Guangdong Zhongchong pursued legal action against the offending Taobao store for trademark infringement and unfair competition.
The company discovered that Tai'an XX Pet Products Co., Ltd. was selling Kaitasi supplements with removed QR codes and erased Chinese trademarks, making product verification impossible for consumers.
The court ruled that the defendant's actions violated Article 57(7) of China's Trademark Law, constituting both trademark infringement and unfair competition. The judgment required immediate cessation of violations and payment of damages within ten days of the verdict taking effect.
Following the ruling, the defendant removed all infringing products from their store, marking a complete victory for Guangdong Zhongchong.
Key Lessons for Brand Protection
The Kaitasi case offers important guidance for brands combating code-scraping and similar violations:
- Strengthen IP protection: Secure trademarks and patents to establish clear legal standing for potential enforcement actions.
- Implement robust traceability systems: Enable consumers to easily verify product authenticity through accessible information channels.
- Enhance market monitoring: Utilize both manual oversight and technological solutions to identify infringements quickly.
- Pursue active enforcement: Employ all available legal remedies, including platform complaints, administrative reports, and litigation when necessary.
- Educate consumers: Increase public awareness about identifying fraudulent practices and the importance of authorized purchasing channels.
Toward a Healthier Pet Nutrition Market
The ramifications of code-scraping extend beyond immediate brand damage. The practice creates potential health risks when altered or counterfeit products enter the market, while simultaneously preventing brands from tracking product issues to their source.
Guangdong Zhongchong's successful litigation demonstrates the effectiveness of determined IP protection and serves as a warning to potential infringers. As legal frameworks continue strengthening nationwide, more companies are expected to follow suit in defending their intellectual property rights.