In this week's BL Business Branding entry, we're diving into the latest intellectual property showdown between Pop Mart, the global collectible toy company known for its wildly popular blind-box figures, and convenience chain 7-Eleven. At the center of the dispute is a case of counterfeit characters, similar versions of Pop Mart's hit Labubu figures which are allegedly being sold at several 7-Eleven franchise locations in California.
Pop Mart, a Chinese-owned brand, has become a major player in the collectible toy world thanks to its signature "blind-box" model, where customers don't know which figure they're getting until they open it. That surprise factor, combined with its creative character designs and global artist collaborations, has made figures like Labubu from the MONSTERS series a must-have for collectors around the globe. The hype has only grown in recent months, fueled by celebrity fans like David Beckham and Kim Kardashian, who've shared their own Labubu moments online. With the increase in demand and Pop Mart expanding through retail stores and "robo-shops" (Pop Mart's retail vending machines), there has been a rise in fake Labubus, also known as "Lafufus", which has caught Pop Mart's attention. Adding to the issue, these Lafufus are significantly cheaper than the real Labubu figures, making them more tempting to buyers.
According to the California lawsuit, Pop Mart alleges that eight 7-Eleven franchises have been selling counterfeit Lafufu toys that closely mimic the original Labubu figures, even down to the packaging, fonts, and overall aesthetic. Pop Mart also claims these knockoffs were poorly made and failed to meet the quality standards of the actual products, raising concerns not only about brand confusion but also about customer disappointment and damage to the brand's reputation. In a market where authenticity and collectability go hand in hand, it's become a problem and a real drag in the toy aisle.
Pop Mart is asking the court for both injunctive relief and monetary damages. The company argues that these lookalike products have undermined its brand value and created confusion in the marketplace. While 7-Eleven has not yet publicly responded to the lawsuit, the case raises the question of franchise accountability and how retailers ensure the legitimacy of the third-party products they carry. As this legal battle unfolds, it will put Pop Mart's intellectual property protections to the test, and highlight how costly consumer confusion can become when copycats hit the shelves.
What Can Businesses Learn From This?
When it comes to brand protection, sometimes you have to put a stake in the legal ground, and Pop Mart is doing just that. Pop Mart's decision to take legal action isn't just about one toy; it's a sign to the market that its designs, packaging, and creative IP aren't up for grabs, and for businesses in any industry, that kind of bold move can be essential to preserving long-term value and revenue.
This case also serves as a reminder that protecting your brand goes beyond paperwork. It's about creating distinctiveness and making sure customers can clearly tell the difference between the real thing and a knockoff. If you don't define and protect your brand, someone else might do it for you and in a world full of lookalikes, originality isn't just a value, it's a valuable business asset worth defending.
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