As the Chinese viral video app TikTok grows in popularity among Americans, so too have Chinese products primarily sold via viral marketing on the app — none more than the “Labubu,” a seven-inch, wide-eyed, furry-bodied, pointy-eared plush doll, bearing a mischievous grin of exactly nine sharp teeth. It retails for approximately $30.
But the Labubu’s distinctiveness goes beyond the doll’s physical appearance. The Labubu’s mystique comes in large part from its manufacturer POP MART’s signature “blind-box” model, whereby customers purchase the Labubu in a sealed package, unable to discern its contents until bought and opened. The “blind-box” model has inspired thousands of “unboxing” videos posted on TikTok and YouTube by consumers and fueled a collectible market for the rarest variations, with resale prices nearing $2,000.
In these circumstances – the combination of the global supply chain and the “blind-box” model – there is considerable risk of counterfeit products on the market. Case in point: POP MART is now suing seven 7-Eleven stores in California for trademark, trade dress, and copyright infringement in connection with the sale of counterfeit Labubus. According to the 144-page complaint, filed in the United States District Court for the Central District of California on July 18, 2025, POP MART alleges the 7-Eleven stores sold poor-quality, counterfeit Labubu dolls in packaging virtually identical to POP MART’s “blind-boxes,” purchased by unsuspecting buyers who believed them to be authentic merchandise. According to POP MART, 7-Eleven has caused actual consumer confusion and harm to the brand’s reputation.
And this type of counterfeiting is not limited to a viral sensation like the Labubu, or even just collectible toys. Last October, convenience store retailers in North Carolina were found to be selling an estimated $313,000 worth of counterfeit candies masking THC-infused products.
This all serves as an important reminder to intellectual property owners to take steps toward protecting their brand and minimizing the risk of sales of counterfeit products:
- Create a novel design. Visual elements that make your product truly distinctive are the easiest way to obtain federal intellectual property protection.
- Integrate anti-counterfeiting packaging. Incorporating elements like holograms or serialized QR codes can aid consumers in identifying genuine products and discourage counterfeiting.
- Register your trademark and trade dress. Rights holders must register their mark(s) before they can sue under federal anti-counterfeiting laws (i.e. the Lanham Act, 15 U.S.C. § 1051). Trademark registration may protect logos, symbols, and slogans. Trade dress, in particular, protects the visual appearance of a product and its packaging, including shape, color, combinations, and textures. This provides a powerful enforcement tool even when counterfeiters do not infringe on your brand name.
- Obtain copyright protection for packaging. Copyright protection cannot be obtained as to functional and utilitarian aspects of product packaging but can be applied to original artistic and creative elements such as fonts, graphics, and layout. Copyright registration is inexpensive and typically takes about six months to obtain, but expedited registration may be available under certain circumstances (i.e. anticipated litigation). This may be especially useful for products sold via a “blind-box” model.
- Proactively monitor and enforce rights. U.S. Customs and Border Protection (CBP) routinely carries out intellectual property rights (IPR) seizures. Rights holders can record their intellectual property with CBP to facilitate IPR seizures of counterfeits; recording with CBP is inexpensive and may be recorded online here.