Many entrepreneurs dream of striking gold with a viral product in overseas markets, but reality often proves harsher than imagination. Imagine finally achieving explosive sales growth, only to receive a lawyer's letter accusing you of trademark or patent infringement—demanding massive compensation, having your goods seized by customs, or facing listing removals. This nightmare scenario is becoming increasingly common for cross-border sellers.
Trademark Hijacking: A Ticking Time Bomb for E-Commerce
The territorial nature of trademark protection creates unique risks for cross-border sellers. Even with registered U.S. trademarks, businesses must secure local trademark registrations in each country where they operate. The relatively quick UK trademark registration process (typically 3-4 months) and low fees have created opportunities for bad actors to hijack trademarks and demand exorbitant licensing fees.
More concerning is that trademark protection only applies to registered categories. Sellers expanding into new product categories must register trademarks for each additional classification—failure to do so leaves them vulnerable to infringement claims.
This practice isn't new. Several well-known Asian brands have seen their trademarks hijacked overseas, creating obstacles for international expansion. Some hijackers even register sellers' English trademarks domestically and file customs records, blocking exports until they receive payoff demands.
Patent Hijacking: The New Frontier of Malicious Claims
Patent systems have become another hunting ground for hijackers. Bad actors target popular products—resistance bands, hair combs, tunnel toys among them—register patents, then file Temporary Restraining Orders (TROs) against sellers. An entire industry has emerged around this scheme, with specialized teams handling product selection, patent applications, and litigation.
Reports indicate some firms generate millions annually by hijacking U.S. patents and targeting Chinese sellers who often lack intellectual property awareness. The number of patent enforcement cases initiated by Chinese sellers in the U.S. has risen significantly, including many suspected malicious claims.
Protecting Against Intellectual Property Hijacking
For cross-border sellers, trademark and patent hijacking represents a constant threat that can trigger catastrophic consequences—from massive financial penalties to supply chain disruptions and sales collapses. Proactive intellectual property strategies are essential:
- Register trademarks first in all target markets: Secure local trademarks before entering new countries, including domestic registration of English trademarks to prevent export blocks.
- Monitor new product categories: Immediately register trademarks for any additional product classifications.
- File patents early: Protect innovations through timely patent applications, even for existing products.
- Conduct regular infringement audits: Systematically review listings for potential violations.
- Stay informed: Track industry developments and emerging case patterns to adjust protection strategies.
Resources for sellers include trademark search guides for major markets, global design patent databases, copyright lookup tools, and lists of commonly trademarked terms.