As its stock price continues to climb and knock-off items proliferate, producer of the “ugly-cute” dolls, Chinese toy giant Pop Mart, is taking steps to reassert brand control and potentially monetize spin-offs of its coveted IP.

Amid the rising popularity of “Lafufu,” a fan-made parody of Labubu, Pop Mart’s legal entity Beijing Pop Mart Cultural & Creative Co., Ltd. applied on July 7 to trademark the name. Filed under the category of “fitness equipment,” the application is currently under review, according to business information platform Tianyancha.

“Lafufu” — a combination of “fake” (as per the letter f) and Labubu — began as a tongue-in-cheek nickname among overseas designer toy enthusiasts for pirated versions of Pop Mart’s flagship toy, which took the world by storm earlier this year.

But as Lafufu’s “ugliness” gained viral traction and became a subculture phenomenon of its own, it could no longer be ignored by Pop Mart.

“This kind of ‘self-counterfeiting’ is essentially a preemptive strike,” Hu Jiamin, a lawyer at Hunan Guochu Law Firm, told local media.

By registering words or images that are likely to be copied or used in borderline violations, brands can move to protect against malicious trademark squatting and brand piggybacking, establishing a legal basis for future rights enforcement, Hu added.

Labubu — the mischievous, wide-eyed gremlin inspired by Hong Kong artist Kasing Lung’s “The Monsters” storybook — has amassed a global cult following.

But despite stores opening in major cities such as Tokyo, London, and Los Angeles, and Labubu’s relatively low official retail price of 99 yuan ($14) and up, the toy remains elusive due to Pop Mart’s shrewd blind box-driven hunger marketing strategy. This scarcity has fueled demand, so much so that Labubu is mentioned in the same breath as Birkin bags, and a booming secondary market has developed.

The limited availability has also prompted a surge in counterfeits, catering to consumers eager to get their hands on the toy but who lack the means to get the real thing.

Yiwu, in the eastern Zhejiang province, renowned as a global manufacturing hub for small commodities, quickly emerged as a major black market for knockoff Labubu products.

But on June 9, the Yiwu Municipal Market Supervision Bureau launched a citywide crackdown and forced all fake Labubu products off the shelves. The change motivated some vendors to pivot production, such as making Labubu clothes instead, to stay under the radar.

“Labubu is so hot that even counterfeit factories can’t keep up. Orders are backlogged for two months,” a vendor in Yiwu told local media. “But after the June 9 surprise inspection by market regulators, everything was pulled overnight. Now we only sell original doll clothes — legal and compliant. We won’t break the law anymore.”

In addition, data released by the Shanghai Customs shows that inspectors seized a total of 63,000 items that infringed on Pop Mart’s trademark and copyright in the first half of this year. The export value of toys via Shanghai ports exceeded 8 billion yuan from January to May, an 8.2% increase year on year.

Labubu counterfeits generally fall into two categories. The first are high-quality replicas that closely mimic the original in both appearance and packaging — some even pass QR code authenticity checks. These are typically priced slightly cheaper than the originals, at around 60 yuan per figure.

The second are characterized by rougher craftsmanship and significantly lower prices, usually between 20 and 30 yuan.

Affectionately dubbed “Lafufu,” “Lababa,” and “Lagogo” by internet users, these spoof versions, especially the lower-end varieties, have become memes unto themselves — not in spite of their exaggeratedly ugly appearance, but because of it.

One popular variation features a four-legged robotic dog that can walk, face alight and tail wagging. Others have lopsided features that lend them a quirky smile, along with missing hands or feet, or come completely bald. According to fans, these imperfections add to each doll’s offbeat charm and cement their place as cult favorites.

Over the years, Chinese regulators have stepped up oversight of the intellectual property sector through stricter enforcement of IP laws, high-profile crackdowns on counterfeit goods, and coordinated campaigns involving customs authorities, market regulators, and e-commerce platforms.

The efforts are not only designed to protect innovation and consumer rights, but also foster the growth of domestic brands in an increasingly competitive global marketplace.

Editor: Tom Arnstein.

(Header image: Fake Labubu products. From Weibo)