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Proxy Export = Taking the Blame for Others? A Must - Read Guide for Foreign Trade People to Avoid Pitfalls

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Problem Analysis: *****, Solution: *****, Process and Cost: *****

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In the proxy export business, cases where the agency is held liable due to the client's product infringement frequently occur. Reveal three high - risk scenarios, provide a three - step protection strategy of formal review, substantive review, and contract - based protection, and give an emergency plan in case of disputes to help foreign trade practitioners avoid legal risks.

Mr. Zhang recently encountered a troublesome thing: A long - term overseas client entrusted him to proxy the export of a batch of toys. As a result, the goods were detained immediately upon reaching the port of destination because they were suspected of infringing on the copyright of a certain brand's cartoon image. Not only did the payment for goods disappear, but he also received a lawyer's letter for compensation. Such an experience of "sitting at home and having trouble fall from the sky" is not an isolated case in the proxy export field...

Why is Proxy Export a Heavy Area for Infringement?

Many foreign trade practitioners believe that "I'm just helping with the formalities, and the product infringement has nothing to do with me". This idea has a fatal misunderstanding. According to the Civil Code and the Foreign Trade Law, if the agency fails to fulfill its reasonable review obligations, it may be recognized as joint infringement. In a case adjudicated by a court in a certain area of the Yangtze River Delta last year, the agency company finally bore 70% of the compensation liability for failing to verify the authenticity of the authorization documents provided by the client.

Your client may be harming you! Proxy export hides hidden dangers

  • Risk Scenario 1: The client provides false authorization documents
  • Risk Scenario 2: The product uses unlicensed patented technology
  • Risk Scenario 3: The goods contain infringing accessories

Build a Firewall in Three Steps

Step 1: Formal Review. Require the client to provide complete intellectual property certificates, including trademark registration certificates, patent certificates, copyright registration documents, etc., and conduct basic verification through the official website of the National Intellectual Property Administration.

Step 2: Substantive Review. For high - risk categories (such as electronic products, toys, clothing, etc.), it is recommended to entrust a professional institution to conduct FTO (Freedom to Operate) investigations. The compliance team of Zhongshitong once helped a luggage enterprise avoid a potential infringement. The "original design" provided by this client actually copied elements of a luxury brand.

Step 3: Contract - Based Protection. The agency contract must clearly stipulate: "All losses arising from intellectual property disputes shall be borne by the principal", and retain complete communication records and document handover vouchers.

What to Do When in Dispute?

Ms. Li's experience is quite representative: When she received the notice of customs detaining goods, she immediately took three key actions ——

  • Freeze the unpaid payment for goods
  • Require the client to provide an explanation and guarantee
  • Entrust a lawyer to conduct an infringement comparison analysis

This set of combination punches finally exempted her from compensation liability. It is worth noting that actively explaining the agency identity to the right - holder and providing the client information can often win an exoneration.

Conclusion: Compliance is Not a Cost but an Investment

While competitors are still hesitating about "whether to charge an additional 200 yuan for verification fees", smart foreign trade people have already made intellectual property review a value - added service. The next time a client requests a proxy service, you may ask rhetorically: "Can you provide a complete chain of authorization proof?" This seemingly simple question may help you avoid legal risks worth millions.

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