Effective Strategies to Safeguard Your Brand in a Digital World

Are you a South African company using a manufacturer in China? Your Supplier Might Already Own Your Brand 

Here's a cautionary tale every business leader needs to know about China's "first-to-file" trademark system:

China operates on a strict "first-to-file" basis for trademarks. This means whoever files first owns the mark - regardless of who actually created or used the brand first.

THE TRAP

Your Chinese supplier can (and sometimes will) file YOUR trademark in China before you do. Once registered, they legally own your brand in the Chinese market and can: 

* Block your imports into China 

* Demand licensing fees from YOU 

* Sell to your competitors using YOUR brand 

* Hold your business hostage when you try to switch suppliers

Even Michael Jordan - one of the world's most recognizable athletes - wasn't immune. Chinese company Qiaodan Sports built an entire sportswear empire using the Chinese translation of his name ("Qiaodan") and his iconic #23, filing trademarks without authorization. It took Jordan 8 years of legal battles before China's Supreme People's Court finally ruled in his favor in 2020. Even then, Qiaodan retained some rights to the romanized "QIAODAN" version.

If this can happen to Michael Jordan, imagine the vulnerability of smaller businesses.