The HK$12 Million Lesson: Don't Let Trademark Squatters Hijack Your Business

Recently featured on TVB's "Scoop" (東張西望), a malicious "trademark squatting" scheme has devastated Hong Kong's pet supply sector. Since 2023, over 10 local retailers and wholesalers have been sued for trademark infringement by an individual named "Rocky." Rocky preemptively registered the trademarks of popular Japanese pet brands in Hong Kong without the original manufacturers' knowledge or authorization.

Once the trademarks were registered, he aggressively targeted local businesses selling these imported goods. The financial impact has been severe: one shop owner who purchased merely HK$2,000 in inventory was forced to pay over HK$200,000 in settlements and legal fees, while a wholesaler lost HK$700,000. In total, the victims have collectively suffered losses exceeding HK$12 million.

Japanese manufacturers and distributors confirmed they never authorized Rocky as an agent. Furthermore, Rocky allegedly produced copycat products with identical Chinese names and similar packaging to confuse consumers. Having registered over 10 trademarks using this deceptive tactic, he has exploited legal loopholes to extort legitimate small businesses, prompting many to abandon the Hong Kong market entirely.

How Sun Project Can Help

For business owners, this case is a clear reminder: if you are operating in Hong Kong—whether you are a retailer, e‑commerce seller, or brand owner—proactively registering your trademarks can greatly reduce the risk of being accused of infringement and facing costly disputes. 

Our firm assists with Hong Kong, China and overseas trademark searches, filing, and portfolio strategy, helping you secure your brand early and avoid falling victim to similar “legal traps”. If you would like to review your current brand protection or start a new trademark application in Hong Kong, you are welcome to contact us for professional advice 

Source from: TVB Website

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