'K-Brand' E-Commerce Global Expansion: Protect IP with a 'Cross-Border One Team'

As K-brands' overseas expansion widens, the scale of online exports is also increasing. According to the Ministry of SMEs and Startups, small and medium enterprises' online export value last year recorded 1.1 billion dollars, up 6.3% from the previous year. As overseas sales using global online platforms increase, interest in disputes over trademark rights and intellectual property (IP) is also growing.

However, as the breadth of overseas expansion widens, legal risks are also growing. Over the past five years, cases of preemptive trademark registration targeting domestic brands have been reported not only in China but also in Vietnam, Indonesia, and elsewhere. Brand hijacking, which was once concentrated on large corporations, has recently spread rapidly to new SNS-based franchise brands. A company whose trademark is preempted by a local broker must bear the full brunt of counterfeit distribution and sales damage.

The reason promising brands lose market dominance in an instant like this is the result of not sufficiently understanding the differing intellectual property (IP) protection systems and legal procedures of each country. The biggest blind spot is the 'trademark principle' that differs by country. Korea, China, and Southeast Asia adopt 'first-to-file,' which grants rights to whoever registers first. On the other hand, the U.S. and others follow 'first-to-use,' which considers actual use. If one does not know this difference, a paradoxical situation arises in which the original creator is branded a counterfeit seller and expelled from the platform. Protective nets like Amazon's 'Brand Registry' also do not work without a local trademark right. Expansion without securing rights in advance is no different from going to the battlefield defenseless.

The bigger problem is post-facto response capability. Even upon recognizing unauthorized preemption of trademark rights or the distribution of counterfeits within a platform, it is nearly impossible for small and mid-sized companies lacking their own overseas legal organization to resolve this independently. Enormous time and cost are consumed just in tracking down a law firm well-versed in the local language and legal system. Not only does at least tens of millions of won in cost arise to pursue trademark invalidation trials or negotiation procedures, but the golden time for relief of rights slips away helplessly while searching for a local agent. Although AI monitoring services have recently been helping with initial crackdowns, the ultimate recovery of ownership and legal sanctions can only be completed when backed by highly specialized legal assistance.

Attorney Son Dong-hoo of Daeryun LLC (Limited) said, "The first button of global expansion is thorough securing of intellectual property. To protect this perfectly, a cross-border legal cooperation system is essential. The series of processes—from international application to infringement reporting within the platform, to local administrative litigation—must be organically connected," adding, "Only when the domestic attorney coordinating the strategy and the overseas expert well-versed in local circumstances move in real time as one team is a seamless defensive net built. It is time to equip ourselves with a solid cross-border legal navigation system from the very start, so that our companies' efforts are not futilely hijacked."

[Read the full article]
'K-Brand' E-Commerce Global Expansion: Protect IP with a 'Cross-Border One Team' (Go)