Labubu vs. 7-11: Global boom fuels Pop Mart's legal offensive against imitators
Labubu, a fluffy-eared elf character with a wide-toothy grin, has become the unassuming centrepiece of an intellectual property dispute. Once a niche collectible, the keychain figurine has evolved into a fashion-forward accessory that has garnered a cult-like following, and competitors have taken notice.
Now, Pop Mart, the Chinese toy giant behind Labubu, is aggressively defending its rights. Its latest target is convenience store chain 7-Eleven. In a lawsuit filed with the US District Court for the Central District of California, Pop Mart has accused the retailer, along with eight of its California-based franchisees, of selling counterfeit versions of the popular character.
With this filing, 7-Eleven joins a growing list of companies facing legal action from Pop Mart, as the brand works to solidify its position in the accessory toy market.
Despite first hitting the market in 2015, Labubu’s viral rise to fame didn’t take off until early this year. Originally created by Hong Kong artist Kasing Lung, who based the figurines on characters from his ‘The Monsters’ book series, the elf-like toy had initially gained modest recognition in niche circles. It wasn’t until 2019, when Lung secured a partnership with Pop Mart, that Labubu’s commercial reach expanded, laying the groundwork for its global appeal.
Now considered a cultural sensation by some, Labubu’s current popularity-spike has often been accredited to an initial endorsement by Blackpink star Lisa, whose social media posts about her own Labubus are said to have aided in the doll’s trajectory into the mainstream. Other celebrities, like Kim Kardashian and Rihanna, only nurtured the hype, further facilitating social media buzz for the products.
In the world of fashion, brands like Uniqlo, Pronounce and Pharrell’s Joopiter bet on the doll through collaborations. Its upsurge also went hand-in-hand with a wider trend of handbag customisation, seen at recent fashion weeks. As such, Labubu can now most often be found hanging from the designer bags of its respective owners, making it the “must-have” fashion accessory.
Labubu’s exclusivity has enticed trendsetters, and eventually their followers, many of whom are encouraged by the figurine’s limited availability and collectible status. Pop Mart’s fervour for Blind Boxes, the contents of which are unknown to buyers, further exasperates anticipation, reaffirming the intended premium status of the product.
The Labubu-craze has escalated so much so that stores in regions like the UK and South Korea were forced to either halt or suspend in-store sales of the fluffy companions due to the outbreak of fights among competitive customers. In just a few short months, the shopping frenzy could see Pop Mart triple its half year revenue, while, according to a report by Forbes in May, the company’s CEO, Wang Ning, became 1.6 billion dollars richer in a single day due to an influx in sales.
An influx of lawsuits
It is therefore no surprise that Pop Mart has set about battering down the hatches when it comes to protecting the IP of Labubu. The company has long initiated legal counters to companies that it alleges to have attempted to ride on the coattails of the creature's success, and such challenges have only risen as the popularity of the figurine skyrockets. Many cases refer to claims of unauthorised sales, counterfeiting or IP infringement.
Last month, courts in China ruled in favour of Pop Mart for two cases; one against an online platform accused of using the Labubu Sports Series without authorisation, another against merchants selling 3D-printed replicas of the products. More broadly, the region has also aided Pop Mart’s attempts to protect its positioning. Recent reports have suggested that all Labubu figurines have been removed from Yiwu, a market once rife in counterfeit toys, while customs in Shanghai are said to have seized around 6,000 unauthorised Pop Mart products from cross-border shipments.
Pop Mart’s legal pursuits have not only been limited to China. The company has issued cease-and-desist orders against companies in Singapore and Taiwan, addressing cases related to everything from food products to influencer-related issues. Its attention has now also turned to the US, which has emerged as a leading market for Labubu.
Here, sales were said to be up 5,000 percent in June compared to the year prior, according to estimates from research platform M Science, cited by the BBC. Pop Mart currently operates around 40 stores in the US, compared to 400 in China, the media outlet stated, while the resale market for the keychain accessory has simultaneously boomed.
Labubu vs convenience stores
Labubu’s prominence in the US as a cornerstone of the wider business only underlines the critical nature of Pop Mart’s lawsuit against 7-Eleven. According to Pop Mart, the cited franchisees sold products that both closely resembled the official doll and were poorly made, with manufacturing defects like faulty stitching and distorted heads referenced within the complaint.
Labubu’s design is described by Pop Mart as a legally protectable trade dress, with its wide grin and pointed ears referenced as distinctive, recognisable traits that contribute to its brand identity. Images portraying the differences between the original and allegedly infringing products were shared as exhibits in the filing, as was video footage of a customer visiting a 7-Eleven store with the intent of purchasing a Labubu, only to find a poor quality alternative instead.
With this in mind, Pop Mart has made claims in the realm of trademark, copyright and trade dress infringement, as well as unfair competition against 7-Eleven and the stated franchisees. The toy maker further accuses the convenience store chain of failing to exercise control over its Californian counterparts, several of which were said to be selling the allegedly infringing products without interference from their parent company. Pop Mart therefore finds 7-Eleven liable for the infringing activity.
In the lawsuit, Pop Mart said it was seeking monetary damages, a correction to advertising said to have harmed the brand and an injunction to halt future sales by the franchises of the counterfeit products.
FashionUnited has contacted 7-Eleven with a request to comment.
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