APAA e-Newsletter (Issue No. 43, October 2024)

Crackdown in South Korea on counterfeit products sold on online platforms using AI software

Eric (KeeWan) KOO - MUHANN Patent & Law Firm (South Korea)

The main routes for product introduction and sales have evolved from markets, department stores, and offline stores to mail order/communication sales, TV home shopping, and online platforms such as Amazon, AliExpress, etc.  The online e-commerce transaction volume has grown every year, and now exceeds 200 trillion Korean Won (Approx. 146 billion US Dollars).  As the scale has increased, the necessity and importance of cracking down on violations of intellectual property rights, especially trademark infringement, have also increased significantly.

However, since it is now physically nearly impossible for humans to directly and consistently search all the numerous online e-commerce platforms for products that could be infringing, AI software is rapidly emerging as the most realistic means to crackdown on counterfeit products being sold online through these platforms.

Searches by AI software for this purpose are being carried out effectively.  They involve a combination of various technologies and analysis methods.  The technologies and methods mainly relate to image recognition, text analysis, and big data analysis.

The following is a more specific explanation.

Technology and Analysis Methods

  1. Image recognition technology:

AI software can analyze product images to identify brand logos, product designs, color patterns, etc.  This can detect products with designs similar to those of the original product that appear to be counterfeit.  Image recognition technology can analyze images in real time using deep learning-based computer vision algorithms.

  1. Text Analysis:

AI software analyzes product descriptions, titles, product feature descriptions, etc. to detect products that are textually similar to the original product and could be counterfeit.  The software uses natural language processing technology to understand the context of product-related text and find products with text that includes words or phrases similar to those in the text of the original product.

  1. Big Data Analysis:

AI software analyzes large-scale transaction data and patterns to monitor changes in sales of specific products or brands.  It can follow a surge in popularity or sales trends of original products and discover products from sellers that do not fit the trend.  It is also used to identify imitation products by analyzing patterns in specific regions or on platforms.

  1. Pattern Recognition and Comparative Analysis:

AI software comprehensively analyzes images, text, sales data, prices, etc. of various products to recognize patterns and compare and analyze them. It quantifies the similarity with the original product and can quickly discover imitation products in this way as well.

Action taken against discovered counterfeit products

  1. Automated Alerts:

When AI software detects products that appear to be counterfeit, it automatically sends alerts to system managers or trademark owners. This allows them to quickly identify problematic products and take action.

  1. Product removal and sales suspension:

Most online platforms provide an online reporting center. When AI software finds a product it suspects is counterfeit, it reports it to the online platform, requesting that the product be made unavailable for sale or that links to the product be removed, in accordance with the method required by the online platform.

  1. Support for legal action:

When a trademark owner takes civil or criminal action in relation to counterfeit goods, the AI software/​​system can provide the necessary support for the legal action, including collecting evidence from online platforms, etc.

Ultimately, by assisting in the identification of counterfeit products being sold on online platforms, AI software utilizing advanced technology and data analysis is playing an important role and will continue to play an important role in preventing intellectual property infringement and maintaining consumer trust. Therefore, with the advance of technology, it is expected that AI software/systems will become increasingly more sophisticated and able to support more efficient counterfeit product crackdowns.