Trademark Strategies in the “B-Gu” Phenomenon: Legal Battles and Business Implications Behind the ACG Derivatives Economy

I. Introduction: The Rise of the “Guzi Economy” and Strategic Trademark Deployment

1. Explosive Growth of a Cultural Phenomenon

In recent years, China’s designer toy industry has seen explosive growth. According to reports from Statista and China Insights Consultancy, the market size of China’s designer toy sector reached over RMB 120 billion in 2024 and is projected to approach RMB 150 billion by 2026. A major contributor to this surge is the so-called “Guzi Economy”—the market for ACG (Anime, Comic, and Game) derivative merchandise. This subculture, especially beloved by Generation Z (those born between the mid-1990s and early 2000s), has driven the popularity of products ranging from character badges and acrylic stands to collectible figurines.

Data from QuestMobile shows that as of April 2024, the ACG and gaming user base had reached 500 million in China, with the broader ACG-affiliated audience being even larger. iiMedia Research projects the 2024 market size of China’s ACG and derivative sectors to hit RMB 597.7 billion, with continued high-speed growth expected in the coming years.

Amidst this cultural and commercial boom, Bilibili (commonly known as B站 or “Bilibili”)—the leading Chinese platform for ACG content—garnered wide attention by filing trademark applications for “B-Gu” (B谷) across multiple classes, including Class 16 (stationery) and Class 28 (fitness equipment). This move reflects Bilibili’s ambition to evolve from a content platform into a physical goods powerhouse, signaling the strategic importance of trademarks in the broader IP commercialization ecosystem.

2. The Underlying Logic of Trademark Deployment

In the ACG economy, intellectual property is not just a cultural symbol—it is a valuable business asset. Trademarks serve as a core legal safeguard, deterring unauthorized commercial use and ensuring competitive advantage. By applying for “B-Gu” across multiple trademark classes, Bilibili seeks to convert cultural influence into tangible product value and build a complete industrial chain from content creation to merchandise development. Trademarks are not only legal shields but also strategic foundations for IP monetization.

II. Trademark Risks and Legal Challenges in the ACG Economy

1. Trademark Squatting: A Hidden Trap in the ACG Industry

Trademark squatting is rampant in the ACG sector. Bilibili itself previously suffered when its core brand name “Bilibili” was preemptively registered by a food company, limiting its expansion in relevant product categories. This incident highlights several areas of vulnerability:

Unclear Ownership of UGC (User-Generated Content): Fan-created characters and names often fall into legal gray areas. These creations can be registered by third parties as trademarks, enabling unauthorized commercial use.

Cross-Border IP Protection Gaps: Japanese anime IPs entering China face convoluted licensing chains and ambiguous agent-authority relationships, making them vulnerable to trademark hijacking.

Overlooked Niche Symbols: Terms like “badge” and “acrylic stand,” though widely recognized within ACG communities, are often neglected in IP protection and become targets for squatting, potentially disrupting merchandise plans.

2. High-Risk Scenarios for Trademark Infringement

Fan Works and Commercial Boundaries: Unauthorized commercial use of fan-made products—such as unlicensed character figurines—often leads to lawsuits, damaging both brand owners and the competitive landscape.

Disputes Over Agency Rights: Complex licensing structures for Japanese IPs frequently result in legal conflicts over trademark use, delaying market entry and causing financial losses.

III. Trademark Strategy: A Practical Guide from Defense to Offense

1. Defensive Strategies

Full-Class Coverage: Bilibili’s “B-Gu” applications span a wide array of categories, aiming to block potential squatters and protect future derivative product lines. Companies should reference the Similar Goods and Services Classification Table and preemptively register trademarks across as many relevant categories as possible.

Monitoring Systems: Businesses must implement trademark monitoring systems that regularly scan the China National Intellectual Property Administration (CNIPA) database to detect suspicious filings. Automated alerts can ensure timely opposition filings and safeguard rights.

2. Offensive Commercialization

Layered IP Licensing: To maximize IP value, companies can adopt tiered licensing. For example, limited-edition badges can be licensed to select manufacturers, while co-branded products can partner with mainstream brands to expand market influence. Contracts should define usage scope and validity period.

Cross-Industry Collaboration: Partnerships between Guzi stores and shopping malls demonstrate the importance of trademark rights allocation. Contracts must clearly assign rights, revenue shares, and liability terms to prevent future disputes and ensure mutual benefit.

IV. IP Counsel Insights: Practical Trademark Advice for the Guzi Economy

1. Establishing a Clear Rights Chain

For UGC-related trademarks, platforms should require rights declarations from creators. Bilibili, for example, could mandate that derivative creators sign agreements confirming IP ownership and commercialization permissions. This can prevent future disputes and reduce risks of unauthorized trademark registration.

2. Precision in Licensing Agreements

Define Product Scope: Contracts should specify whether terms like “badge” or “stand” refer to limited-use items and restrict sales to particular events or channels.

Clarify Profit Sharing and Liability: Agreements should outline revenue splits and assign liability for unauthorized use. If a licensee oversteps trademark boundaries, they should face clear legal consequences.

3. Compliance Warnings for Emerging Business Models

Live Commerce Risks: Hosts showcasing Guzi products must stay within authorized usage boundaries. Unauthorized displays can trigger brand-owner complaints. Platforms must improve compliance training for live streamers.

Counterfeit Prevention in Limited Pre-Sales: Brands can use QR codes or blockchain to authenticate genuine goods and combat counterfeits. For instance, collectible figurines sold in limited pre-sales can incorporate anti-counterfeit tracking to boost buyer trust.

V. The Future: Trademark Management Empowering the ACG Industry Upgrade

1. From Single Symbols to Ecosystemic IP Matrices

Disney’s “character family” trademark system offers a model for domestic IPs. By registering marks for main characters, supporting characters, and product categories, brands can build a robust IP matrix. This ecosystem approach enhances resilience and long-term commercial value.

2. Technology-Driven Trademark Innovation

Blockchain Certification: Timestamped blockchain records can help establish ownership of UGC content, strengthening IP claim evidence and reducing rights disputes.

AI Monitoring: AI systems can track e-commerce platforms and social media for counterfeit activity, enabling timely enforcement. This significantly improves detection speed and accuracy.

3. Global Strategy for Local IPs

As Chinese ACG brands expand overseas, localized trademark strategies are vital. In Southeast Asia, companies should register marks early and adapt branding to local tastes. For example, a domestic IP entering the Thai market should tailor its trademark visuals to resonate with regional consumers and minimize localization risks.

Conclusion: The IP Battle Behind the “Guzi Economy” Is a Clash of Cultural Passion and Commercial Rationality

The booming Guzi Economy is rooted in Gen Z’s deep love for ACG culture—but its sustainable growth relies on a well-structured trademark protection system. To thrive in the global IP competition, businesses must establish a closed-loop ecosystem encompassing content creation, trademark protection, and derivative development. With standardized management and technological innovation, the “pay-for-love” generation will continue to fuel the ACG economy’s ascent—balanced between cultural value and commercial strategy.