- within Intellectual Property topic(s)
- with readers working within the Oil & Gas industries
- within Intellectual Property, Government, Public Sector and Family and Matrimonial topic(s)
The surge in popularity of collectible characters such as Labubu and Chiikawa has brought renewed attention to an often-overlooked aspect of intellectual property protection in Hong Kong: the recordation of IP rights with the Customs and Excise Department. Recent developments have underscored a critical gap in enforcement – without proper recordation, even the most valuable brands may find themselves vulnerable to counterfeiting operations that Hong Kong Customs is powerless to stop.
The enforcement landscape
Hong Kong's position as a major transshipment hub makes it a strategic gateway for both legitimate trade and counterfeit goods. In 2024, Hong Kong Customs handled 31,242 cases, representing a substantial 63% increase from the previous year. Among these, 783 cases involved intellectual property rights infringement, resulting in the seizure of approximately 4 million items valued at HK$309 million. More recently, a single one-month operation led to the confiscation of nearly 157,000 suspected counterfeits with an estimated market value exceeding HK$72 million.
These figures demonstrate the scale of the counterfeiting challenge and highlight the vital role that Hong Kong Customs plays as the frontline defence in protecting intellectual property rights. As the only department responsible for taking criminal sanctions against copyright and trademark infringements in Hong Kong, the Customs and Excise Department possesses extensive powers of search and seizure at borders, warehouses, and other locations.
The prerequisite: Recordation
Despite the robust enforcement framework, a significant limitation exists: Hong Kong Customs cannot proactively act against suspected counterfeit goods unless the relevant IP rights have been officially recorded with the department. This procedural requirement recently came into sharp focus when it emerged that two of the most counterfeited collectible brands in the market – Labubu and Chiikawa – had not completed the necessary recordation procedures.
According to sources close to the matter, Hong Kong Customs approached the trademark owners of both brands to establish records that would enable enforcement action against counterfeits, after Hong Kong Customs received consumers' complaints. As one source succinctly stated, "Customs cannot act upon any suspected fake dolls if there is no recordation with the department".
Understanding the recordation process
The recordation procedure with Hong Kong Customs is designed to facilitate border enforcement while ensuring that customs officers can reliably distinguish genuine products from counterfeits. The recordation process in Hong Kong requires the written appointment of a qualified examiner who must, through a formal interview assessment, demonstrate relevant expertise in the intellectual property rights enforcement for the IP owner and distinguishing between genuine goods and counterfeit goods.
To record IP rights with Hong Kong Customs, trademark or copyright owners must provide relevant registration certificates, supporting materials and/or legal documents to support their complaints.
Recordation facilitates faster response times when counterfeits are detected. With IP rights already on record and examiners pre-approved, Hong Kong customs can act swiftly when suspicious goods are identified. IP owners are also expected to take on an active role in assisting the Hong Kong Customs during the enforcement process by inspecting goods seized from such operations, preparing and submitting witness statements, and attending Court in Hong Kong to testify and give evidence.
Conclusion
The cases of Labubu and Chiikawa serve as cautionary examples of the consequences of delayed recordation. Despite the immense commercial success and widespread recognition of both brands, the absence of completed recordation procedures left Hong Kong Customs unable to take proactive enforcement action against the proliferation of counterfeits. This enforcement gap persisted even as counterfeit versions flooded local markets, potentially causing significant brand dilution and revenue loss.
For IP owners operating in or through Hong Kong, customs recordation should be viewed not as an optional enhancement but as an essential component of a comprehensive IP protection strategy.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
