Is it cute or is it terrifying? No toy has ever caused such a divide in opinion. However, no matter what people think, the impact is the same: everyone has been talking about this mischievous-looking creature. The Labubu was officially the viral sensation of 2025.
Where did Labubu come from – and what now?
The origin of Labubu can be traced back to the mind of artist Kasing Lung, born in China and raised in The Netherlands. His illustrated book trilogy “The Monsters”, published in 2015, unveiled a whimsical world, shaped by his Chinese heritage and fascination with Nordic folklore, and brought various eccentric characters to life, including Labubu.
In 2019, Kasing Lung signed an exclusive licensing agreement with Pop Mart, giving the company commercial operation rights and the ability to transform Labubu from a toy to a powerful IP asset.
However, it was not until 7 years later, at the end of 2024, when the peculiar pet really started jumping into people’s shopping bags. Their scarcity is part of their appeal, with people going to great lengths to track them down, queuing for hours and paying hundreds of pounds for the addictive “blind box” experience. Social media is flooded with people flaunting their Labubus and special-edition Labubus are being sold at auctions for over $100,000.
According to Pop Mart’s 2025 Interim Results Announcement, “The Monsters” generated an impressive 4.81 billion yuan (approximately $669.88 million) by 30 June 2025, making it Pop Mart’s most profitable IP.
Pop Mart’s IP strategy
In the toy industry, when products transcend their physical counterparts, becoming distinctive, memorable brands, IP plays a vital role. It allows a story or symbol to become a concrete entity which the owner can safeguard and profit from. With the IP safely in their pocket, Pop Mart was able to spread the Labubu figurines over the globe and watch the money flow in.
Pop Mart displays a robust, multi-layered approach to their IP, encompassing copyright, trade marks, and patents, demonstrating an understanding that design and branding are both highly valuable assets. By 2024, the company held over 1,200 trade marks, 1,600 copyrights and 45 patents.
Pop Mart’s patents mainly cover innovations in product functionality and production techniques, including toy assembly methods, and CNC water transfer printing and related equipment. Design patents, on the other hand, primarily protect the toy’s overall shape, facial expressions, and distinctive visual features such as unique clothing or accessory designs.
After securing its core IP, Pop Mart began taking strong measures against infringers and imitators.
Labubu’s evil twin
It may have seemed like Pop Mart could walk blissfully off into the sunset after hitting the hype sweet spot, but where there is hype, counterfeiters soon follow. The toy industry is a significant victim of the counterfeit market, which in 2022 was valued by the OECD (Organisation for Economic Co-operation and Development) at $464 billion. Whilst the internet allows a product to gain worldwide popularity, carving a path across the globe also makes it easier for fake versions to appear.
In Labubu land, “Lafufu” has become the widespread term used to refer to the counterfeit toys. “Lafufus” have become almost as sought-after as Labubus for various reasons, including their lower price tag, extra, unique features, or even just a wish to go against the mainstream. They have become so popular that Lafufu manufacturers, small factories which are mainly located in the Guangdong and Hebei provinces in China, are also struggling to meet demand. They may seem like silly, affordable toys but do they represent something more sinister?
Counterfeit goods are a threat to brand value and can seriously harm revenue streams. They can even be health risks to consumers, especially when it comes to children’s toys, as they are often poorly made. Not only are they a threat to Pop Mart and their customers, Chinese authorities are also concerned by what the mass of “Lafufus” means for China’s growing reputation as an IP powerhouse. Labubus are an example of China transforming creativity into business opportunity, rivalling other Asian countries with a significant global cultural influence, such as Japan and South Korea, whilst Lafufus undermine the country’s innovation and prevent fair competition.
Nevertheless, Pop Mart is not giving up. They continue to strengthen their efforts in maintaining their unique position in the market, demonstrating the importance of strong IP protection.
Brand enforcement
A key aspect of enforcing the protected status of a brand is carefully monitoring the market so that you are aware if counterfeit goods appear. Pop Mart has implemented identifiers on their products to make genuine Labubus distinguishable from frauds, such as scannable QR codes, serial numbers and unique packaging design.
Once counterfeit goods are identified, it is important to take rapid action to minimise damage to the brand. Pop Mart’s 2024 Annual Report notes that it “identified more than 10 forged authorisation letters, took down the domain names of 5 overseas websites selling infringing products, initiated 3 infringement lawsuits, and successfully intercepted over 1.3 million infringing products at customs, making every effort to safeguard the Company’s intellectual property.”
In 2019, Pop Mart filed an invalidation request with the China National Intellectual Property Administration (CNIPA) to challenge the unauthorised registration of the Labubu design patent. The CNIPA panel declared the entire design patent for the Labubu figure (No. ZL201830002145.4), which had been filed and granted to another party in 2018, invalid. The ruling reaffirmed the company’s originality and legitimate ownership of the character’s IP rights.
IP collaboration
Although the internet frenzy may be tailing off, Pop Mart continues to maximise the potential of its IP by forming strategic partnerships with other brands. For example, on the 18th of September, UNIQLO launched a clothing line featuring the “The Monsters” illustrations. This involves drawing up a licensing agreement so that Pop Mart are remunerated for the third-party use of the Labubu brand, as well as to ensure that the use aligns with Pop Mart’s wishes and there is no misuse of their image.
Holding the copyright to his creation, Kasing Lung profits from licensing deals and has now taken Labubu a step further, partnering with luxury Parisian leather brand MOYNAT to release a collection of Labubu-adorned handbags and leather accessories, which became available on the 11th of October.
Conclusion
Some people may think that Labubus have sent the world crazy, but, although their cuteness remains subjective, there is no doubt that they are an insightful case study on business strategy in a digital world, including the necessity of building and maintaining a robust IP portfolio. When the internet means that an individual’s or business’s creation could go viral overnight, a rigorous strategy for protecting IP, as well as surveillance of third-party use, is crucial.
Pop Mart’s success is no coincidence. Its strong IP framework sets a model for the designer toy industry, ensuring early copyright registration, strategic trademark protection and design rights for distinctive products. A vigilant infringement monitoring system allows the company to respond swiftly to counterfeits through legal and administrative action, safeguarding both brand value and market integrity.
