Selling Fake Chanel on Shopee? Taiwan Trademark Law Guide

Article 95 of the Trademark Act punishes anyone who, without the consent of the trademark right holder and for the purpose of marketing, uses an identical or similar trademark on identical or similar goods. Using an identical mark on identical goods does not require separate proof of likelihood of confusion; in other situations, a likelihood of confusion among consumers is required. The penalty is imprisonment of up to three years, criminal detention, and/or a fine of up to NT$200,000 (about US$6,500).

Article 97 punishes anyone who "knowingly" sells infringing goods, or possesses, displays, exports, or imports them for the purpose of selling. The penalty is imprisonment of up to one year, criminal detention, and/or a fine of up to NT$50,000 (about US$1,600). It applies equally to sales made online. A seller who did not manufacture the goods but simply resold them is generally prosecuted under Article 97.

Under Article 98, infringing goods are confiscated regardless of who owns them, and the seller's criminal proceeds are also confiscated under the Criminal Code.

Civil liability

The trademark right holder may demand removal of the infringement and, where infringement is threatened, its prevention (Article 69). Where the infringement was intentional or negligent, the right holder may also claim damages.

One permitted method of calculating damages is up to 1,500 times the retail price of the seized infringing goods (Article 71, Paragraph 1, Subparagraph 3). On the NT$200 top in this case, that could reach NT$300,000 (about US$10,000), although the court may reduce an amount that is manifestly disproportionate (Article 71, Paragraph 2).
 

Selling just one item, earning just NT$200, can still be a crime

The Trademark Act sets no threshold for quantity or profit. In this case, the judge held that a seller who intends to profit, solicits unspecified buyers, and completes delivery has made a completed sale. It made no difference that the buyer was a police officer collecting evidence.

Quantity, profit, a guilty plea, and prior record mainly affect the sentence. They do not affect whether a crime has been committed.
 

"I didn't know it was fake": does that help?

Criminal liability requires that the seller acted "knowingly." In practice, this means direct intent: knowing the goods are counterfeit and selling them anyway. If a seller merely foresaw the possibility but accepted the risk, or was simply careless, the element is not met, and courts have acquitted sellers when knowledge could not be proven.

But saying "I didn't know" is not an automatic defense. Prosecutors and judges typically weigh:

• Whether the brand is well known
• Whether the sourcing was legitimate
• Whether the purchase price and selling price are reasonable
• The appearance and quality of the item
• The listing content and the seller's conversations with buyers

A seller with no proof of origin, a price far below the genuine article, and a listing that heavily uses the brand's name and logo will find it hard to claim ignorance. For an ordinary second-hand seller who cannot confirm authenticity, the safest course is not to list the item and to check with the brand owner or a professional authentication service first.
 

Why Well-Known Trademarks Get Broader Protection

This case is a typical counterfeit-sales case, decided under the general protection given to registered trademarks. But because the double-C logo belongs to such a famous brand, it is a useful illustration of why well-known trademarks are protected more widely.

Ordinary registered trademarks are mainly protected against use on identical or similar goods and services. Well-known trademarks have built up strong distinctiveness and goodwill over time, so their protection can extend to different categories.

 

What is trademark dilution?

Under Article 70 of the Trademark Act, knowingly using a trademark identical or similar to another person's well-known registered trademark, in a way likely to dilute the distinctiveness or reputation of that mark, is deemed trademark infringement.

For example, if a famous brand's logo is placed on completely unrelated products, consumers may not think the goods come from the original brand, but over time the logo's unique link to that brand weakens. This is known as "dilution." If a well-known mark becomes associated with low-quality or negative products, that may also damage its reputation.

Note that Article 70 dilution is mainly a civil remedy. The criminal provisions are Articles 95 to 97, which focus on counterfeiting involving identical or similar goods.
 

If a well-known mark isn't registered in a category, can someone else register it?

Not necessarily. Under Article 30(1)(11) of the Trademark Act, the Taiwan Intellectual Property Office (TIPO) may refuse an application if the mark is identical or similar to another person's well-known trademark and is likely to confuse the relevant public or dilute the well-known mark's distinctiveness or reputation, even if the application covers different goods or services.

A well-known trademark does not have to be registered in Taiwan, but it must be proven with objective evidence such as length of use, sales figures, market share, advertising, media coverage, and consumer awareness. A brand simply claiming "everyone knows us" is not enough. These are the criteria applied when examining applications; Article 70's deemed-infringement rule, by contrast, requires a "well-known registered trademark."

For a deeper look at infringement and remedies, see Gold-Keen's article on how trademark infringement is determined, liability and damages, and enforcement (Chinese).
 

A Guide for Online Sellers

Describing a "style" is different from using the logo

Using words to describe a style, such as tweed, trimmed edges, or pearl decoration, does not necessarily infringe. It depends on whether the words are used as an indication of the goods' origin.

But if the item itself, its tag, packaging, photos, or the listing title shows the double-C logo, a brand name, or a highly similar mark, the risk rises sharply. Labels such as "inspired by," "tribute style," "factory overrun," or "not genuine" do not make a counterfeit mark legal.
 

Can you resell genuine second-hand items?

Yes. Under the principle of exhaustion of trademark rights (Article 36, Paragraph 2 of the Trademark Act), once goods bearing a registered mark have been put on the market, in Taiwan or abroad, by the trademark right holder or with its consent, resale is generally not infringement. Individuals can usually resell genuine bags or clothing they bought lawfully without the brand's permission. It is wise to keep your proof of purchase and the item's serial number.

Two situations call for caution:

1. The item is counterfeit: Reselling or using it does not make it lawful.
2. The item has been altered or modified: If the condition or origin of the goods has clearly changed, yet they are still sold under the original mark, buyers may be misled, and infringement concerns remain.

 

Four checks before you list

Before selling on Shopee, Facebook, Instagram, Threads, or any other platform, check that:

1. You have credible proof of purchase, an invoice, or other sourcing records.
2. The marks on the item, packaging, and tags are not identical or similar to a well-known brand's.
3. The price, quality, and way you obtained the item are not unusual.
4. Your listing title, labels, and photos do not suggest the item is genuine or authorized.

If you cannot confirm authenticity, adding phrases such as "not sure if real," "a gift from a friend," or "no returns" will not remove your trademark liability.
 

Conclusion: A Low Price Doesn't Mean Low Legal Risk

A NT$200 counterfeit top can lead to criminal punishment, confiscation of goods and proceeds, and civil claims for damages. Before selling, do not rely on price, quantity, or "second-hand" status alone. Verify where the item came from and whether the trademark is genuine.

Brand owners should go beyond registering their marks. Monitor online platforms, preserve evidence of infringement, and plan protection for well-known and cross-category use based on the brand's level of fame.

If you have questions about trademark infringement, well-known trademark recognition, or cross-category trademark protection in Taiwan, please contact Gold-Keen International Patent & Trademark Office. Our team can assess your situation case by case.

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Sources

• ETtoday: Police order from Shopee: NT$200 "double-C top" sale leads to 100x penalty for seller (Chinese)
• Taiwan High Prosecutors Office: Selling or importing counterfeits: don't lose big over small gains (Chinese)
• Laws & Regulations Database of the Republic of China (Taiwan): Trademark Act

This article is a general summary of Taiwan trademark law. Actual cases depend on the goods, the scope of trademark registration, the manner of use, and the evidence.