Online sales have become a crucial revenue stream for numerous companies. However, with this growth comes the emergence of countless cyber infringers seeking to exploit a seller's hard-earned success.
Foreign companies entering the Korean market and selling their products on platforms like Coupang or Naver Shopping often encounter three common IP infringement scenarios:
1. A third party adopts a name that closely resembles your unique Naver shopping or Coupang seller/store name, leading to potential confusion among consumers.
2. A competitor seller is falsely advertising generic products as if they were your branded products.
3. A competing seller has unlawfully appropriated your product images and/or listing text.
By employing the following brand enforcement strategy, you can mitigate the impact of these situations and maintain your sales without any setbacks.
STEP 1: IDENTIFY KEY TRADEMARKS AND COPYRIGHTS FOR YOUR ONLINE STRATEGY IN SOUTH KOREA
Trademarks play a vital role in identifying the origin of products and services. They encompass various elements such as words, phrases, symbols, drawings, sounds, or even smells. If consumers associate your company with a particular sensory experience, such as seeing, hearing, or smelling something related to your products or packaging, it is likely that you possess a trademark. In the online realm, trademarks commonly include store names, logos associated with your store, product names, taglines, distinctive product packaging, and unique (non-functional) product designs.
Copyrights, on the other hand, pertain to the rights granted when you create a "creative work." This encompasses a wide range of materials, including photographs, stock images, marketing materials, and designs featured on packaging.
For foreign companies entering the Korean market and establishing an online presence, it is important to identify and protect these key trademarks and copyrights. By understanding and safeguarding these intellectual property assets, you can establish a strong and distinctive brand presence in the digital landscape of South Korea.
STEP 2: REGISTER TRADEMARKS AND COPYRIGHTS
In South Korea, prominent online platforms such as Coupang or Naver Shopping regularly encounter numerous complaints related to intellectual property. Successful complaints often rely on substantial evidence of trademark usage and ownership. Therefore, it is advisable for foreign companies entering the Korean market to have their trademarks and copyrights fully registered before pursuing any reports of infringement. The process of trademark registration typically takes 6-12 months from initiation to completion. Copyright applications, on the other hand, usually require 3-4 months for processing, although the duration may vary depending on the specific type of work involved.
By registering your trademarks and copyrights in South Korea, you gain legal protection and the ability to take appropriate action against infringers. It is recommended to consult with a local intellectual property attorney or engage a professional service provider who is knowledgeable about the registration process in South Korea. They can guide you through the necessary steps, documentation requirements, and ensure that your trademarks and copyrights are properly protected in the Korean market.
STEP 3: ENFORCE YOUR TRADEMARKS AND COPYRIGHTS
After successfully registering your trademarks and copyrights in South Korea, it's crucial to take appropriate measures to enforce your rights against potential infringers. However, before proceeding, it's important to carefully assess whether the alleged infringement is indeed occurring and if it falls within the scope of intellectual property rights. As a foreign company entering the Korean market, it's essential to understand the local laws and regulations regarding intellectual property and online sales.
For instance, if the goods in question are being sold at the wholesale level, it is likely that buyers are legally able to resell those goods online. If there is a contractual agreement prohibiting such sales, the issue may be more of a contract dispute rather than an intellectual property dispute. In most cases, individuals who legitimately purchase a product have the right to resell it as they see fit. Pursuing false claims can be a waste of resources and may even result in potential damages and attorney fees.
However, if you identify genuine instances of trademark or copyright infringement on platforms like Coupang or Naver Shopping, it's important to follow the correct procedures to have the infringing content removed. This typically involves reporting the infringement to the platform's intellectual property protection team, providing them with the necessary evidence and information to support your claim. It is advisable to consult with a local intellectual property attorney or engage a professional service provider who can guide you through the enforcement process and ensure that your rights are properly protected.
By taking proactive measures to enforce your trademarks and copyrights, you can protect your brand, maintain your competitive advantage, and safeguard your online sales in the Korean market.
NOTES
1. If you sell a product that is "trademarked," the fine is at least $(USD)400.
If you engage in the sale of a product that is "trademarked," you may face a minimum fine of $(USD)400 or more. Don't assume that you can sell any product on Amazon or Taobao in Korea.
Selling a product that is registered as a trademark in Korea constitutes trademark infringement, which is a punishable offense. The penalties for such infringement can include a fine of up to $(USD)400 and imprisonment for a maximum of 10 years. It's important to be aware of the potential consequences to avoid unknowingly engaging in criminal activities.
When creating a list of products to sell based on overseas market research, it is essential to conduct a trademark search on a dedicated trademark search site. This search will help you determine if the product name is registered as a trademark in Korea. If no trademark registration appears in the search results, you can proceed with selling the product. However, if a trademark registration is found, it is imperative to obtain permission from the trademark holder before selling the product. This is especially crucial if the trademark holder is a third party, such as a broker, rather than the actual manufacturer. In such cases, it is advisable to cease selling the product immediately.
2. 'Store name' will be deleted unless you trademark it.
Failure to trademark your online store name may result in its deletion. If your store name is not trademarked, there is a risk of losing it, and the same applies to the name of your physical store. This process is not simple.
If someone holds a trademark registration certificate for a particular name, they can easily request its deletion through the trademark report page on platforms like Naver Shopping or Coupang, without needing to provide further evidence.
Even if you attempt to save the deleted store through legal action or re-upload it with a different name or title, you will experience a complete loss of sales due to diminished search visibility.
To protect your store name, it is advisable to apply for a trademark registration in Korea. The process can be conveniently done online through patent lawfirm like DAEILPAT. If you are in the process of naming your store or have already created one, it is recommended to apply for trademark registration as soon as possible.
DAEILPAT
Embark on the journey of registering your patents and trademarks for Korean online marketplaces by initiating a complimentary initial consultation with DAEILPAT. Our team is eager to provide you with expert guidance and support. You can reach us at deailpat@gmail.com to schedule your consultation.
It's important to note that, as per industry norms, there might be supplementary expenses associated with your patent or trademark application beyond the initial filing. Our team will provide you with transparent information regarding any potential costs.
We at DAEILPAT specialize in assisting businesses with their intellectual property needs in Korea. Our services extend beyond just patent and trademark applications. If you're looking to sell or market your products on the Korean online marketplace, we are here to help.
Our team possesses extensive expertise in E-commerce and is comprised of experienced patent and trademark attorneys, as well as skilled business consultants who are highly regarded in Korea. Moreover, we have established strong partnerships with leading online sales and marketing agencies, enabling us to effectively promote and sell Korean products online.
Should you require support in selling your products in Korea's online marketplace, please do not hesitate to reach out to us. We are dedicated to facilitating your success in the Korean market.
We look forward to assisting you in safeguarding your intellectual property rights and paving the way for your success in Korean online marketplaces.
Doing Business in South Korea?
Business Development Services to Support your Market Entry to South Korea:
- Marketing and Public Relations Solutions in Korea: Accelerate Your Brand's Success
- How to Find a Business Partner in Korea
- How to Find and Validate Suppliers and Manufacturers in South Korea
- Comprehensive Korea Market Analysis and Research Services
- Tech Transfer Services in Korea
If you have any questions or needs related to this, please feel free to contact us.
Read more:
- Intellectual Property Rights in Korean E-Commerce
- How to protect your brand on online marketplaces in South Korea
- Optimizing Sales on Naver Shopping: Leveraging Patents and Trademarks for Success
- Naver Smart Store: Unlocking Success with Patents and Trademarks
- Coupang Sellers Need Both Patent and Trademark Protection
- Gmarket Success: Patents & Trademarks for Sales Advantage
