Aug 20, 2026 | Client “Bridges Burning”: How SMEs Can Protect Their Copyright in Four Steps

Client “Bridges Burning”: How SMEs Can Protect Their Copyright in Four Steps

1. Small and medium-sized enterprises (hereinafter “Company A”) frequently encounter the following situation: a client (hereinafter “Company B”) places an initial order with A, but once the product has been validated and gained popularity in the market, B pressures A to lower prices or even seeks alternative products to replace A’s offerings. Without realising it, A sees its orders drop to zero. Upon investigation, A discovers that B has adopted a replacement product that is nearly identical in appearance and functionality to A’s original—this is what is known as “burning bridges” or “swapping the beam and stealing the pillar.” This article aims to provide Company A with a legal, efficient, and enforceable framework for rights protection.

2. The reason B’s replacement product is so strikingly similar is that B’s end‑users have already highly accepted A’s product. If the replacement showed obvious differences in appearance or quality, end‑users would be unlikely to accept it. Therefore, A must immediately examine whether the replacement product infringes A’s copyright or other intellectual property rights. Unfortunately, many infringements are not easily detectable at the initial stage.

3. Under Hong Kong’s Copyright Ordinance (Cap. 528), A’s product is highly likely to be protected by copyright. As long as A (or its assignee) is the original designer of the product and can provide records such as design drawings, the creator’s name, and the date of creation, A may legally assert that it is the copyright owner and may accordingly lodge a claim.

4. If the replacement product is 90% or more similar to A’s product, or even completely identical (this must be verified with an experienced copyright lawyer), A should take immediate action to cease or at least hinder the production and distribution of the replacement product. The targets of action include:

(a) the manufacturer of the replacement product;
(b) Company B; and
(c) B’s downstream customers.

Phase 1: Issuing a Cease and Desist Letter

5. A should send cease and desist letters as early as possible to all parties in the infringement chain. If any one party in the chain stops participating, the market for the replacement product will be hampered or even halted. Sending such a letter is a low‑cost, high‑efficiency first step. The author strongly advises: do not delay. The earlier the letter is sent, the stronger its deterrent effect.

Phase 2: Escalating to Court Proceedings

6. If B (usually the mastermind) ignores the cease and desist letter, A must make a decisive choice and consider escalating enforcement to the court level. Since B’s end‑customers may be located overseas (e.g., the United States or Europe), the practical approach is to sue B in the Hong Kong High Court and seek an injunction to restrain B and its related parties from continuing to infringe copyright and sell infringing products. Before initiating legal action, it is essential to consult with an experienced copyright lawyer on the prospects of success and strategy.

Cease and Desist Letter vs. Court Summons: A World of Difference in Deterrence

7. In the author’s experience, many infringers continue their conduct after receiving a cease and desist letter; however, the vast majority immediately stop selling once they receive a court summons (writ), primarily out of fear of injunctive liability, damages, and having to bear the other party’s legal costs. This is a key factor in deciding whether to proceed with litigation.

Final Move: Issuing a Formal Public Statement to Reclaim the Market

8. Some copyright owners, after commencing litigation, also issue a formal public statement notifying peers in the trade (including B’s customers and A’s own customers). As long as the statement is truthful (e.g., providing the case number, defendant’s name, and court orders), it does not constitute defamation. This measure not only undermines the infringer’s market position but also demonstrates to the public Company A’s “determination to combat counterfeiting,” often resulting in an immediate recovery of market share.

Conclusion: Act with Courage, Decide with Speed

9. SMEs have limited resources, but the cost of inaction is even greater. Your product deserves to be defended by the law. Consult our copyright lawyers today, and we will guide you through every step—from cease and desist letters, to litigation, and all the way to formal public statements. We are with you throughout the entire journey.