Capturing opportunities in China: The key role of IP protection

The global IP landscape in 2025 is more dynamic and complex than ever, with China now a pivotal player — evolving from a consumer of global IPs to a creator, partner, and proprietor. Successful cultural adaptation, strong local partnerships, and market-specific content are the keys to immense opportunities, but these come with heightened risks. Weak IP protection could undermine trust in China’s business relations on the global stage, disrupting the country’s efforts to foster a thriving business environment and slowing its progress as a leader in innovation. On February 18, Jing Daily and the Harvard Club of Shanghai co-hosted a timely webinar, “Protect to Better Connect,” to tackle these pressing issues. The event featured an esteemed panel of speakers, including Larry Warsh, founder and publisher of Jing Daily; Sarah Wang, vice president of APAC business development at Authentic Brands Group; and Delfino雕雕, a China-based fashion blogger. Together, they discussed best practices, common pitfalls, and strategies for navigating China’s evolving IP landscape. Delfino painted an optimistic picture of the Chinese market for global IPs, highlighting examples such as Beijing SKP, the world’s top-performing retail store; GQ China, the highest revenue-generating edition globally; Vogue China, which ranks second only to the U.S. in revenue; and Balenciaga, with the most stores in China. He also noted W Magazine, which quickly established itself on par with Vogue after entering the market. Delfino attributed this success to Chinese consumers being curious, quick learners who value cost-effectiveness, experience, and service, making the market highly receptive to established global IPs. He further observed that brands struggling elsewhere could achieve success in China with proper management. Sarah Wang highlighted why Authentic Brands Group sees enormous potential in the Chinese market. By the end of 2023, China represented only $14 billion of the $300 billion global IP licensing market — below the typical 15% to 20% share seen in mature retail markets — underscoring significant growth potential. Wang firmly believes that China has fertile ground for the IP market to thrive, including a vast consumer market, advanced supply chains, robust retail and e-commerce platforms, and a well-established IP ecosystem. However, Wang emphasized the risks of operating in China, using the "first-to-file" trademark system as an example. Unlike the "first-to-use" system in the U.S., it can lead to malicious registrations, forcing brands to reclaim their trademarks. She noted that China’s IP market is still evolving, even big players like Authentic Brands Group are working to build localized frameworks and clear game rules to address these challenges. As the founder and publisher of Jing Daily — a valued global voice on China’s luxury business — Warsh reflected on its 15-year journey, growing into a trusted resource for global brands by connecting luxury in China with the West and delivering key insights into consumer trends across the Chinese and APAC markets. However, alongside these opportunities, challenges emerged that threaten the operation of Jing Daily. Warsh shared an eye-opening case study of Jing Daily’s recent operational crisis in China, involving alleged data falsifications and the unlawful transfer of media assets by local partners. In December 2024, Jing Daily officially terminated its collaboration with Kollective Influence Inc. and its China-based executives, Charlie Gu (顾晓峰) and Derek Zhao (赵磊), after uncovering alleged theft, embezzlement, data falsifications, misuse of company resources, and the unlawful transfer of Jing Daily’s media assets on platforms like WeChat, Xiaohongshu (also known as RedNote), and Douyin during their cooperation. Warsh has since initiated legal proceedings in both China and the United States. Currently, the legal case against Charlie Gu (顾晓峰) has officially been filed in China as of February 6, 2025. The case number is (2025) Hu 0114 Minchu No. 5015, presided over by Judge Zhang Zhihui of the Shanghai Jiading District People’s Court. This case highlights critical issues of cross-border IP protection and compliance oversight, offering a cautionary example for international brands localizing their operations. At the same time, Jing Daily is closely cooperating with its legal team in the U.S., striving to recover the digital assets through legal procedures. Although both China and the United States have begun to accept this case, Charlie Gu (顾晓峰) has been evading multiple lawsuits filed against him by Jing Daily in both countries (for further case details in the U.S., please click this message). Larry Warsh encouraged international IP operators to stay attentive to potential challenges when entering the Chinese market, highlighting the importance of adopting proactive measures to safeguard their assets. In conclusion, the Webinar not only illuminated the opportunities and challenges faced by global IP operators in China but also provided actionable insights and strategies to help brands and IP owners successfully navigate and thrive in this complex market.

Capturing opportunities in China: The key role of IP protection

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Published February 25, 2025

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Capturing opportunities in China: The key role of IP protection