Intellectual property (IP) infringement issues have grown in tandem with the global e-commerce market, which expanded in value from US$2.9 T in 2018 to US$5.8 T in 2023, an average annual growth rate of 14.6%. According to the World Intellectual Property Organisation (WIPO), intellectual property infringement cases through e-commerce increased approximately 2.5x in 2023 compared to 2018. The Asian and Latin American regions showed the highest proportion of counterfeit product distribution. Korean products have become major targets due to their brand value and scarcity.
The Korea Intellectual Property Protection Agency (KOIPA) has been particularly concerned. According to an Organisation for Economic Co-operation and Development (OECD) report, the scale of counterfeit products infringing Korean companies' IP rights reached approximately US$9.7 B globally as of 2021, equivalent to 1.5% of Korea's total exports. This resulted in Korean companies losing sales of US$6.1 B, and the loss of 13,855 manufacturing jobs.
This has led to work with major e-commerce platforms like Shopee as they play a crucial role in strengthening K-brand protection. KOIPA's Director Kim
Yong-seon recently announced that a memorandum of understanding (MOU)
at Shopee's Singapore headquarters on June 24. Building upon the
original MOU signed in 2020, this renewed agreement encompasses
significantly expanded cooperation to protect Korean brands and sellers
in the region, including offline enforcement linkages for fundamental
solutions to counterfeit product distribution.
The MOU consists of three major cooperation areas:
Strengthening the response system for intellectual property infringement of Korean brands
Shopee will collaborate with KOIPA to provide easy access for monitoring and reporting of suspected IP infringements involving Korean brands, in accordance with agreed protocols.
Offline enforcement collaboration to block counterfeit product distribution
To overcome the limitations of online anti-counterfeit enforcement and to strengthen efforts to prevent the distribution of counterfeit goods, both parties agree to explore and implement joint response measures when necessary.
Expand educational activities to raise awareness of intellectual property protection
Both organisations plan to jointly conduct education and awareness-raising activities to improve intellectual property protection consciousness among both sellers and consumers.
Kim emphasised: "We are pleased to establish a cooperation system for K-brand protection with Shopee, the leading e-commerce platform in Southeast Asia and Taiwan. We will actively support our companies' overseas expansion and export activities by expanding cooperation with other major global e-commerce platforms.”
“Shopee is proud to renew and strengthen our partnership with KOIPA to better safeguard Korean brands in our region,” said Ian Ho, VP at Shopee.
“As e-commerce continues to grow, it is more important than ever to work closely with trusted partners like KOIPA to enhance IP enforcement and build a secure and trustworthy environment for all users.”