“What did you buy online today?”

“There’s free shipping for orders over XXX today!”

…

Online shopping has become a way of life. In Taiwan, platforms like momo, Shopee, PChome, and Line are widely used, and the competition is fierce. To quickly list new products and stay ahead of the curve in meeting consumer demand, many e-commerce sellers unknowingly cross legal boundaries—violating trademarks, patents, or copyrights.

 

Earlier this year (2023), Taiwan implemented a new tax registration system—the “Taiwan E-Commerce Act”—to further regulate online sellers.

So, as the e-commerce market becomes more regulated, what should we, as online business owners, pay special attention to?
 

1. Does selling products bought from overseas on e-commerce platforms constitute infringement?

In principle, this practice falls under parallel importation, also known as “gray market” goods. As long as the source of the trademark is legitimate, selling gray market products generally does not constitute infringement.

Taiwan’s Trademark Act follows the doctrine of exhaustion, which means that once a product is lawfully sold in the market and the trademark owner has received compensation, their trademark rights over that specific product are considered exhausted. Therefore, the trademark owner cannot claim infringement against someone reselling that product.

However, there are important caveats to keep in mind↓↓↓
 

2. What should you check before listing a product online?

※ Three key areas to pay attention to: Trademarks, Patents, Copyrights
 

▲ Trademark

 1. Is the source of the product legitimate?

A. Make sure the product is genuine and its source is legal to avoid accidentally selling counterfeit or knockoff goods.

According to Article 97 of Taiwan’s Trademark Act, anyone who sells, intends to sell, displays, exports, or imports counterfeit goods may face up to one year of imprisonment, detention, or a fine of up to NT$50,000, or both.

※ Amendments passed in 2022 (Year 111 on the ROC calendar):

• New Article 95-2: Adds penalties for manufacturing counterfeit labels. This includes making, selling, possessing, displaying, exporting, or importing counterfeit trademark labels or collective trademark labels. Violators face up to one year of imprisonment, detention, or a fine of up to NT$50,000, or both.

 • New Article 95-3: In response to the rise of online transactions, the law now clearly states that producing or using counterfeit labels via electronic media or online platforms is also punishable.

b. Has the brand registered its trademark in Taiwan?

Trademarks are based on territoriality!

If the original brand owner has registered the trademark in Taiwan, it prevents others from using the same name with a different logo on products. While the principle of exhaustion limits control over parallel imports, trademark rights remain exclusive to the original owner.

 

If the brand hasn’t registered its trademark in Taiwan, you need to check whether someone else has already done so.

Things can get complicated—message Jinrui Trademark right away for advice!

c. If you’re an agent or franchisee, did you obtain trademark usage rights and sign a contract?

If you’re selling someone else’s branded products under a franchise or distribution agreement, both the licensor and the licensee must register the trademark license with the trademark authority to protect their rights. Otherwise, if the trademark owner transfers the trademark to someone else in the future, your previous license contract may no longer be valid—leaving you exposed to infringement claims from the new trademark owner.

How to handle trademark licensing and protect your rights in case of infringement 👉 https://bit.ly/goldkeen56

 

▲ Copyright

2. Check whether your product listings and promotional content infringe on copyright

When engaging in parallel imports or acting as a franchisee/distributor for another brand, be sure to:

 

a. Use original wording in your product descriptions. Do not reproduce the brand’s logo or directly download it from their official website to use on your own online store.

 

b. Do not download and use images from the brand’s official website. These images are protected by copyright (economic rights). Downloading and using them without permission may infringe on the brand’s reproduction rights.

It’s best to take your own product photos and create your own promotional materials—this greatly reduces the risk of copyright infringement.

 

※ If authorization has been granted, follow the terms stated in the licensing agreement.

 

▲ Patent

3. Make sure your products do not infringe on others’ patent rights

There are three main types of patents:

 • Invention patents

 • Utility model patents

 • Design patents

 

These patents protect various aspects such as methods, processes, materials, appearances, shapes, patterns, and structures. When selling a product, you should:

 

a. For branded products: Check whether the brand has obtained patent rights or has been granted patent licenses.

 

b. For non-branded products: Pay attention to whether the product’s appearance, structure, or patterns fall within the scope of someone else’s patent protection. 

Type	Invention	Utility Model	Design
Protected Subject	Creation of technical ideas utilizing natural laws	Creation of shapes, structures, or combinations of objects using natural laws	Creation based on the shape, pattern, color, or their combination of an object, with visual appeal
Examination System	Substantive Examination	Formality Examination	Substantive Examination
Patent Duration	20 years	10 years	15 years
Examination Time	2–3 years	3–6 months	Around 1 year
Legal Basis	Patent Act §41	Upon registration	Upon registration