Chinese Firms Urged to Fortify Online Brands as Cybersquatting Costs Mount
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Chinese companies are paying a hefty price for neglecting their online brand protection while expanding overseas, with some spending tens of millions of dollars to reclaim squatted domain names.
As Chinese firms increasingly look abroad amid fierce domestic competition, many are finding their brand names and websites hijacked by cybersquatters, according to industry experts. One top Chinese electronics company spent nearly 100 million yuan ($13.8 million) on litigation and negotiations to buy back its brand domains in multiple countries, according to ZDNS, a national research center on Internet domain name system.
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- Chinese companies face costly domain squatting abroad, with some spending up to 100 million yuan ($13.8 million) to reclaim brand domains.
- Most Chinese firms lag in securing branded top-level domains (TLDs); the U.S. had 22 times more TLD applications than China in 2012.
- Applying for a TLD is complex and expensive (evaluation fee: $227,000), but offers better brand protection and control; next ICANN application window is April 2026.
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Who’s Who
- Baidu Inc.
- Baidu Inc., a Chinese internet giant, experienced a cybersquatting incident where a counterfeit site, baidu.mx, illegally scraped and displayed its search results. This highlights a broader issue of Chinese companies neglecting online brand protection while expanding internationally.
- Quanjude
- The Peking duck restaurant operator, Quanjude, is a storied Chinese company whose brand has been targeted by cybersquatters. This highlights a broader issue for Chinese companies expanding overseas, where neglecting online brand protection can lead to significant financial losses and reputational damage.
- Wuliangye
- Wuliangye is a renowned Chinese baijiu brand that has been targeted by cybersquatters. This indicates a vulnerability in their online brand protection as they expand overseas. The issue highlights the broader challenge for Chinese companies needing to proactively secure their digital identities to prevent financial losses and reputational damage.
- Canon Inc.
- Canon Inc., a Japanese company, migrated its global website to global.canon in 2016. This strategic move aimed to enhance its global brand value and assure visitors of the site's authenticity, demonstrating a proactive approach to online brand protection through a custom top-level domain.
- Apple Inc.
- Apple Inc. utilizes its custom TLD, ".apple," for various services, including product showcases and a dedicated sign language service for hearing-impaired users. This demonstrates how companies can exercise full control over their digital ecosystem by operating a custom TLD.
- Xiaomi Corp.
- In 2014, Xiaomi Corp., a Chinese phone maker, invested $3.6 million to purchase the domain name mi.com. This acquisition was a strategic move supporting its internationalization efforts, as the company transitioned from its original domain, xiaomi.com.
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What Happened When
- Since 2012：
- The number of cybersquatting cases filed with the World Intellectual Property Organization (WIPO) has been rising.
- 2012：
- The last application round for custom top-level domains (TLDs) was held; organizations in the U.S. and Europe made over 80% of the 1,930 applications.
- 2014：
- Xiaomi Corp. paid $3.6 million to acquire mi.com as part of its internationalization strategy.
- 2016：
- Canon Inc. migrated its global site to global.canon.
- By 2025：
- A top Chinese electronics company spent nearly 100 million yuan ($13.8 million) on litigation and negotiations to buy back its brand domains in multiple countries.
- 2025：
- Mao Wei, director of ZDNS, commented that Chinese companies have been passive and lack a systematic plan for acquiring global web resources.
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