E-Commerce Merchants Claiming 'OEM Factory' Status Ordered to Pay 1.51 Million RMB for Trademark Infringement

WISECODE Take

E-commerce sellers often falsely market themselves as 'OEM factories' to attract traffic, believing they can limit liability as mere 'sellers' if sued. The Shenzhen Intermediate People's Court dispelled this in a case where defendants infringing Trademark No. 84***** were held liable as manufacturers due to their marketing claims, resulting in a 1.51 million RMB damages award. For brand owners, this eases the burden of proof against counterfeiters; however, legitimate resellers using misleading factory claims risk being classified as manufacturers. Distributors operating transparently remain unaffected. Businesses should preserve screenshots of counterfeiters claiming factory status to seek higher damages, while resellers must clean up misleading marketing language.