Hafiz Zubir & Co.

Ecommerce and IP Infringement

Combatting Counterfeits: How to Protect Your Brand from Fake Products in Online Marketplaces in Malaysia

With the growth of e-commerce and social media platforms such as Shopee, TikTok Shop, and Facebook Marketplace, businesses are more susceptible to trademark infringement, which occurs when another party uses their trademark without permission.

According to a recent report by the Intellectual Property Corporation of Malaysia (MyIPO), there was a 45% increase in trademark infringement complaints between 2019 and 2020, with a total of 1,290 complaints filed last year alone.

A large proportion of these complaints were related to online marketplace platforms where counterfeit products were being sold, which highlights the need for businesses to take measures to protect their trademarks and products in the digital space.


Counterfeit Products in Malaysia: Real Examples of Local Brands Being Impacted by Fake Goods

There have been several instances of counterfeiting products in Malaysia that have used Malaysian brands. Here are some examples:

Padini: In 2018, the Malaysian fashion brand Padini discovered that counterfeit versions of their products were being sold on e-commerce platforms such as Shopee and Lazada. The counterfeit products were sold at a lower price and had poor quality, which tarnished Padini’s reputation.

Munchy’s: In 2019, Munchy’s, a popular Malaysian biscuit brand, was also a victim of counterfeiting. Counterfeit Munchy’s products were found to be sold in a shop in Klang, Selangor. The counterfeit products were packaged similarly to the original products, but had poor quality and lacked the necessary certifications.


Impact of Online Trademark Infringement on Businesses

Loss of Revenue: When counterfeit products flood the market, it can lead to lost sales for legitimate businesses, resulting in a decline in revenue.

Damage to Reputation: Counterfeit products are often of lower quality than genuine ones, leading to customer dissatisfaction and damage to the brand’s reputation.

Consumer Confusion: When infringing parties use similar trademarks to sell their products, it can cause customer confusion and result in lost sales for the legitimate brand.


Understanding the Legal Framework for Trademark Protection in Malaysia

In Malaysia, trademarks are protected under the Trade Marks Act 2019, Under the Trade Marks Act, registered trademarks are protected against unauthorized use, copying, and distribution by other parties.

The owner of a registered trademark has the exclusive right to use the trademark in connection with the goods and services for which it is registered, and can take legal action against any infringing parties.

Guarding Your Online Brand: How Trademark Registration in Malaysia Help Businesses Protect Their Intellectual Property in E-Commerce Marketplaces

In Malaysia, e-commerce marketplaces such as Shopee, Lazada, Facebook and Instagram offer users the ability to report and remove infringing products or shops from their platforms.

This is a vital tool in the fight against counterfeit and infringing products. However, it’s important to note that the platforms only entertain complaints of products that have been registered for trademark, i.e. obtain the Certificate of Registration from Intellectual Property Corporation of Malaysia (MyIPO).

If you suspect that an infringing product or shop is being sold on a Malaysian online marketplace, you can follow these steps:

1) To ensure that the trademark for the product is registered with the relevant authorities, i.e. MyIPO. It is important to note that the trademark must be registered under the relevant class, according to the type of product that bears the trademark. For instance, musical instruments fall under Class 15, while clothing falls under Class 25.

Once the trademark is registered, the process of reporting and removing infringing products becomes much easier.”Once the trademark is registered, the process of reporting and removing infringing products becomes much easier.

2) After ensuring that the trademark is registered, the next step is to report the infringing product or shop to the online marketplace. Shopee and Lazada, for example, both have mechanisms in place to report and remove infringing products or shops. The report should include all of the evidence gathered, such as the product description, seller information, and any other relevant details.

3) If necessary, you may also make a fake purchase to gather additional evidence. This can be done by creating a fake account or using a friend’s account to purchase the product in question.

Once the purchase has been made, take note of any information that could be used as evidence, such as the product description, seller information, and any other relevant details. Fake purchase is also helpful in getting crucial information such as the company’s name, the infringer bank’s account number, as well as infringer’s address in order to bring civil court action against the infringer.



In conclusion, with the growth of e-commerce and online transactions becoming increasingly normal, the risk for intellectual property owners is also increasing. Counterfeit and infringing products are prevalent in online marketplaces, posing a significant threat to businesses.

However, there are ways for intellectual property owners to protect their business. By registering their trademark with the relevant authorities and reporting any suspected infringing products or shops to online marketplaces, they can take proactive measures to safeguard their intellectual property rights.

Failure to do so may lead to significant losses and damage to the business reputation. Therefore, it’s crucial for businesses to be vigilant and take necessary steps to combat counterfeiting and infringement in the online marketplace.