​Trademark Squatting in Europe and the UK: A Growing Threat to Cross-Border E-commerce Sellers

Introduction

Cross-border e-commerce is booming, but intellectual property (IP) protection, specifically trademark squatting, is a rising concern. Trademark squatting in Europe and the UK is increasingly impacting Chinese e-commerce sellers. This article examines this issue, its causes, and practical solutions, drawing on Kayming IP’s experience.

I. Trademark Squatting: A Serious Challenge

Trademark squatting is a major problem for sellers focusing on the European and the UK markets. Kayming IP has seen numerous cases across various product categories, including cosmetics, appliances, electronics, clothing, and more. Squatters use tactics such as the following, which harm sellers and disrupt the market:

• Bad-faith registration: Registering trademarks that are already in use.
• Exploiting platform complaints: Using platform rules (like Amazon’s) to get listings removed.
• Demanding high transfer fees: Charging exorbitant fees to return the trademark.

II. Underlying Causes

This section summarizes common factors identified across numerous cases and analyzes their potential causes.

• Deficiencies in the Legal System: EUIPO and UKIPO conduct only formal examinations, rather than substantive examinations. There is a lack of strict verification of the applicant’s qualifications and intent to use the trademark. While this design is intended to improve efficiency and lower barriers to entry, in practice, it provides opportunities for squatters. In contrast to the US, which requires evidence of use for trademark applications, the EU and UK lack this requirement, thereby increasing the risk of squatter exploitation. Their opposition procedures, intended to resolve disputes, do not fully address this weakness.
• Streamlined Registration: The trademark process is relatively simple and inexpensive, especially in the UK.
• Lack of Seller Awareness: Some cross-border e-commerce sellers underestimate the importance of trademark registration and lack the foresight to proactively secure their trademarks, leaving them vulnerable to squatters.
• E-commerce Platform Policies Exacerbate the Problem: Platforms like Amazon often take a “one-size-fits-all” approach to handling IP complaints. They typically do not conduct substantive reviews, only considering IP ownership and application dates, and believe that IP disputes should be resolved by the relevant IP offices in each country. This leads to sellers’ listings being easily removed, and Amazon’s difficult appeal process and various suspension measures leave many sellers with no options but to pay high settlement fees.

III. Suspected Organized Groups: How Squatting Works

Kayming IP’s recent research into handled cases suggests that organized groups may be behind some squatting incidents. These groups possess extensive knowledge of the European market and follow a polished playbook, increasing the risk for sellers. Their typical strategy, based on our findings, is as follows:

• Targeting Sellers and Products: They lurk in e-commerce groups or channels with access to sellers, sifting through information to pick brands and products vulnerable to complaints on Amazon. They analyze sales, trademark setups, and name value (like English phrasing, sound, or meaning).
• Focusing on Mid-Tier Brands: They target mid-sized brands with sales but potentially weak IP protection.
• Precision Squatting: They register trademarks in the brand’s core product categories, sometimes extending to related categories.
• Platform Complaints: Once registered, squatters often use the trademark to file complaints on platforms like Amazon, usually resulting in listing removals within a week; some squatters then contact sellers offering to sell back the trademark, although delays in listing removal can occur due to Amazon’s review process, strategic timing by the squatter, or a long-term strategy to maximize their leverage.
• Settlement or Showdown: Following a listing removal, outcomes typically involve a negotiation phase, potentially concluding with a settlement (often involving trademark transfer), or through legal challenges to the squatter’s IP rights, with varying degrees of success.

IV. Kayming IP’s Real-World Strategies and Wins

Throughout this process, sellers are often at a disadvantage, particularly once a trademark is registered, which grants squatters significant leverage. Kayming IP, with its deep experience in cross-border IP disputes, helps sellers take charge using a “fast, multi-angle, flexible” approach. For example, consider this case from 2024:

In August 2024, a client found their UK trademark squatted and asked Kayming IP for help. On August 12, Kayming IP filed an invalidation request citing prior rights (Sections 5(1) or 5(2): identical/similar to an earlier trademark for similar goods) and passing off (Section 5(4)(a): use violates law). By August 22, the client’s Amazon listing was down after a complaint, and the squatter demanded a high price. Kayming IP used the invalidation as leverage, negotiating a settlement 20% below the initial ask. In November, the two parties reached an agreement and the client withdrew the invalidation request, had the trademark transferred, and restored their listing.

In 2024, 80% of European squatting cases handled by Kayming IP were resolved via opposition or invalidation plus settlement, and 20% through settlement alone.

V. Trademark Protection Tips for Sellers

With trademark squatting posing a significant challenge in Europe and the UK, cross-border sellers need solid defenses. Kayming IP offers these practical tips and a look ahead:

• Register Early: File trademarks before entering the European or UK markets—or at least before selling. Focus on key categories, then expand as your business grows.
• Monitor and Warn: Regularly check trademark registrations in your markets using EUIPO/UKIPO databases or monitoring services to catch squatters early.
• Act Fast: Spot a squatter? Act quickly—file an opposition during the publication period or invalidation/revocation if the trademark is registered. Prepare Amazon appeal documents with use evidence (sales, ads) to fight the compliant.
• Negotiate Smart: If listings are removed or costs increase significantly, negotiate with the squatter. Log all chats, avoid overpaying, and consider negotiators if needed.
• Get Help: Engage expert agencies for efficiency. Kayming IP offers full-service support—registration, opposition, invalidation, and appeals—maximizing your protection with EU/UK regulatory expertise.

VI. Conclusion

Trademark protection is the key to long-term success for cross-border e-commerce sellers. To tackle squatting risks, sellers should register proactively, monitor the market closely and utilize professional services for optimal efficiency. Based in Shenzhen, China, Kayming IP has years of experience in this space, with a skilled team that is responsive, adaptable, and has established connections with global IP experts. Going forward, Kayming IP is committed to delivering comprehensive solutions for sellers and, going forward, aims to collaborate with sellers and IP professionals globally to create robust brand protection for companies expanding internationally.