Sending Warning Letters to Online Sellers Does Not Constitute Commercial Defamation, Rules Court

WISECODE Take

A stationery manufacturer issued warning letters to 5 e-commerce stores selling infringing items and was subsequently sued for commercial defamation by its competitor. The Guangzhou IP Court ultimately ruled in favor of the manufacturer. Many business owners fear that warning distributors will lead to liability for commercial defamation, but this case demonstrates that targeted warning letters based on verified facts are legitimate enforcement actions. The core dispute stemmed from sellers using new product listings while still displaying old infringing images and videos. The court noted that the manufacturer's notices were strictly fact-based, referenced prior judgments, and targeted only specific product links rather than disparaging the competitor's overall brand. When sending warning letters, businesses should keep notices completely objective and specific to the infringing links. Proper evidence gathering prior to issuing notices ensures that warning letter enforcement remains legal, safe, and effective.