Ecommerce Crackdown Hundreds of Stores Closed Over IP Violations

Attention cross-border e-commerce sellers! Recent infringement incidents on e-commerce platforms are frequent, leading to store closures and substantial fines. Sellers should prioritize intellectual property protection to avoid infringement and ensure compliance. Actively transitioning to brand-building is crucial for enhancing competitiveness. Focus on operating legally and ethically to mitigate risks and build a sustainable business in the competitive global market. Proactive measures are essential to safeguard your business from potential legal and financial repercussions.
Ecommerce Crackdown Hundreds of Stores Closed Over IP Violations

The dream of striking gold in cross-border e-commerce has turned into a nightmare for many sellers. Imagine building a successful online store, only to wake up to account suspensions and crippling fines that could bankrupt small and medium-sized businesses overnight.

Recent reports reveal a sweeping intellectual property enforcement campaign targeting Chinese sellers across major platforms including Amazon, Wish, AliExpress, and eBay. The crackdown has affected 175 stores, with one company particularly devastated—losing eight storefronts and facing $3 million in penalties (over ¥20 million RMB).

The Culprit: A Power Tool Giant Fights Back

The enforcement action stems from DeWalt, the century-old American power tool manufacturer known for its premium quality and strong brand recognition. The company's aggressive protection of its intellectual property serves as a stark warning to sellers who might consider cutting corners.

Platform Policies Tighten as Risks Escalate

As competition intensifies in cross-border e-commerce, platforms are implementing stricter policies to maintain market order and user experience. Wish has explicitly stated plans to increase penalties for intellectual property violations, signaling a broader industry trend toward zero tolerance for infringements.

Compliance Over Short-Term Gains

Industry experts emphasize that sellers must abandon any hope of flying under the radar with counterfeit or infringing products. The consequences—account terminations, massive fines, reputational damage, and potential legal action—far outweigh any temporary profits.

The Path Forward: Brand Building and Risk Mitigation

The long-term solution lies in brand development. Establishing unique products through original design, research, or authorized partnerships allows sellers to reduce platform dependency while building sustainable competitive advantages. Equally important is proactive intellectual property protection for sellers' own brands.

To navigate the complex landscape of intellectual property in global e-commerce, sellers should:

  • Thoroughly understand international IP laws regarding trademarks, patents, and copyrights
  • Conduct comprehensive infringement checks throughout product development and sales processes
  • Establish clear contractual agreements with suppliers regarding IP responsibilities
  • Consider intellectual property insurance to mitigate financial risks
  • Respond promptly and professionally to any infringement claims

The cross-border e-commerce journey requires patience and diligence. While the temptation of quick profits exists, only compliance and brand development offer a sustainable path forward in this increasingly regulated marketplace.