How to Renew a Trademark in China: Lessons from an Overseas Sourcing Mishap
Evelyn Harper, a thriving entrepreneur, had built her fashion accessories brand, Harper Elegance, into a household name in the U.S. Known for its unique, high-quality designs, Evelyn decided to expand her line with luxury handbags to cater to an upscale market. Her goal was to source customizable products that reflected her brand’s ethos while keeping production costs manageable. Evelyn turned to Alibaba, confident she’d find a reliable supplier to meet her needs.
The Search Begins
On Alibaba, Evelyn found Golden Handbag Co., Ltd., a supplier boasting exquisite designs, customizable options, and glowing customer reviews. Their representative, “Anna,” stood out with her professionalism and swift responses to Evelyn’s inquiries. She provided detailed product specifications, shared enticing photos of their handbags, and offered a competitive quote.
To seal the deal, Anna sent samples within a week. They were beautifully crafted, showcasing high-end materials and impeccable workmanship. Convinced she had found the right partner, Evelyn placed an order for 500 luxury handbags to launch her new line.
The Warning Signs
As discussions progressed, Evelyn began noticing inconsistencies:
Off-Platform Communication: Anna insisted on moving conversations to WhatsApp, claiming it was easier for quick updates.
Vague Business Details: When Evelyn asked for the company’s registration information, Anna provided poorly scanned documents with missing details.
Offshore Payment Request: Anna required a 50% deposit of $30,000 to be wired to a Hong Kong offshore account, citing “international tax benefits.”
Despite her reservations, Evelyn trusted the samples and made the payment.
The Silence
Initially, Anna kept Evelyn updated with vague progress reports, blaming “production delays” on supply chain disruptions. After weeks of stalled communication, Anna disappeared altogether. Six months later, Evelyn had no handbags and no response from the supplier.
Desperate for help, Evelyn contacted IntelliChain, a leader in supply chain investigation and risk management.
IntelliChain’s Investigation
IntelliChain assigned James Carter, a seasoned investigator, to look into Evelyn’s case. James uncovered startling facts about Golden Handbag Co., Ltd.:
Fake Factory: The listed address led to an abandoned warehouse, with no signs of active operations.
Invalid Registration Documents: The business registration information Anna provided was fraudulent and belonged to a dissolved entity.
Stock Photos: Images of the handbags and factory provided to Evelyn were sourced from stock photography websites.
Offshore Payment Scheme: The Hong Kong bank account was tied to a network of shell companies involved in fraudulent transactions.
Evelyn had fallen victim to a sophisticated scam targeting international buyers.
How IntelliChain Could Have Prevented the Fraud
James explained how IntelliChain’s services could have protected Evelyn:
Factory Verification: IntelliChain would have conducted an on-site inspection, confirming the factory’s existence and production capabilities.
Document Authentication: Their team would have verified the supplier’s business registration with official Chinese authorities.
Secure Payment Guidance: IntelliChain’s escrow system would have safeguarded Evelyn’s funds, releasing payment only upon verified production milestones.
Real-Time Monitoring: IntelliChain’s tracking tools would have alerted Evelyn to any irregularities in the production process.
The Trademark Complication
While resolving the fraud, Evelyn faced another issue: Golden Handbag Co., Ltd. had filed for a trademark in China under the name Harper Elegance. In China, trademarks operate on a first-to-file basis, meaning Evelyn could lose her rights to her own brand in the region.
IntelliChain connected Evelyn with an intellectual property attorney, who helped her file for trademark renewal and initiate proceedings to contest the fraudulent registration.
Lessons Learned
For Evelyn, the experience was a harsh lesson in the complexities of international sourcing and the importance of trademark protection. “I thought due diligence was just a formality,” she admitted, “but this taught me how critical it is to verify every aspect of a supplier.”
With IntelliChain’s help, Evelyn secured a legitimate supplier, protected her brand in China, and successfully launched her luxury handbag line.
A Message to Other Businesses
Evelyn’s story highlights the risks of global sourcing and the importance of proactive measures:
Always Conduct Due Diligence: Verify suppliers, inspect factories, and authenticate documents.
Use Secure Payment Systems: Avoid wiring funds directly to offshore accounts without safeguards.
Protect Your Intellectual Property: File and renew trademarks in key markets to prevent misuse.
IntelliChain’s Services Include:
Factory Verification
Document Authentication
Escrow Payment Services
Real-Time Production Tracking
Trademark Protection Guidance
Contact IntelliChain Today
Phone: +1 307-310-5502
Email: connect@intellichainco.com
Address: 306 N Main St. Sheridan, WY 82801
Let IntelliChain be your trusted partner in China, ensuring that every step of your sourcing process is secure and seamless. With our local expertise, we guarantee that your products meet the highest standards of quality, compliance, and safety. By partnering with us, you can focus on scaling your business, knowing that every detail—from factory vetting to logistics—is handled with precision.
Let IntelliChain be your eyes and ears in China, empowering you to bring the best products to market with confidence.
