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TikTok Ban? How Brands Can Protect Revenue and IP Amid Uncertainty in the U.S.

Upcoming US TikTok Ban
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Last week, a federal appeals court rejected an emergency bid by TikTok to temporarily block a law that would require its Chinese parent company, ByteDance, to divest the extremely popular app by January 19th, or face a ban. The implications of a ban would have a significant impact for brand owners.

Small and medium-sized businesses (SMBs) and especially those in the beauty industry could be particularly impacted, as this segment has relied the most on the platform for user engagement and revenue growth. Here are some ways that brands can swiftly adapt today to maintain their market presence and protect their intellectual property if TikTok gets removed from American app stores next month:

1. Maintain or Rebuild Audience Engagements on Alternative Platforms

With TikTok's possible ban in the US, brands may need to proactively diversify and cultivate their presence on alternative platforms such as Instagram and YouTube. This transition involves reallocating resources and investments, including paid advertising, to diverse platforms to re-engage existing customers and attract new audiences. A survey done in May by Fohr, a micro-influencer-focused talent platform and marketing firm, found that 68% of creators said they see Instagram as the best place to move their audience if the ban takes place, followed by 23% who selected YouTube.

Given TikTok's substantial user base of over 170 million monthly users in the US, a theoretical  shift to different platforms would require strategic planning to replicate the engagement levels brands previously enjoyed.

2. Intensify Monitoring for Intellectual Property Infringements on all Social Media Platforms

The migration of content from TikTok to other platforms where creators were previously not as active is expected to lead to a surge in user-generated content. This increase poses heightened risks of intellectual property infringements, including counterfeit products targeting U.S. consumers. Brands must enhance their monitoring and enforcement mechanisms on all relevant platforms to safeguard their assets and maintain consumer trust.

3. Continue to Check on TikTok's Global Channels

Regardless of a potential U.S. ban, TikTok will continue successfully operating in other regions, therefore infringers may exploit reduced oversight by US-based brands. Maintaining robust monitoring efforts on TikTok's global platforms is crucial to prevent unauthorized use of intellectual property and to protect brand integrity across all markets.

Strategic recommendations for brand owners

The final outcome is still unclear, and brand owners should not change their social media strategies as an outcome of this ruling, but rather take this as an opportunity to implement industry best practices:

  1. Diversify Social Media Engagement: Develop a comprehensive social media strategy that includes multiple platforms to mitigate risks associated with reliance on a single channel.
  2. Educate Consumers: Inform customers and current TikTok followers about new official or authorized channels for purchasing products to reduce confusion.
  3. Invest in Advanced Monitoring Tools: Use sophisticated technologies to detect and address third party brand abuse as well as IP infringements simultaneously across various platforms.
  4. Collaborate with Legal Experts: Engage with legal professionals specializing in intellectual property to navigate the complexities of enforcement in different jurisdictions.

The potential TikTok ban underscores the necessity for brands to remain agile and proactive in their digital marketing and brand protection strategies. By anticipating changes and implementing robust measures, brands can continue to thrive and uphold their reputation in an evolving digital landscape.

If you want to learn more about how a possible TikTok ban could impact your business—and how to protect your brand and revenue during the transition—stay tuned for our upcoming webinar. We’re also hosting sessions on emerging AI tools, marketplace IP enforcement, and more. Sign up for our newsletter in the link below to be the first to register once these webinars go live!

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