'Why Is That Okay?' – Kevin O'Leary Blasts U.S. Legal System As Chinese Companies Sue Americans After Stealing Ideas

Kevin O'Leary, entrepreneur and "Shark Tank" investor, is asking a question many American small business owners are starting to echo: "Why is that okay?" 

His remarks come amid growing concern that U.S. businesses are being squeezed by two forces—intellectual property disputes with overseas factories and steep import tariffs that threaten to sink startups before they can grow.

O'Leary shared his frustrations during an April appearance on "The Megyn Kelly Show," where he reflected on the experience of Beth Benike, founder of Busy Baby. Her story, he said, represents a growing number of entrepreneurs caught in the crosshairs of trade and legal systems they can't control.

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Tariffs, Copycats And Courtrooms

Benike, a U.S. Army veteran, designs silicone placemats to help parents keep their babies' items off the floor. Her product gained popularity after a "Shark Tank" appearance. However, the decision to manufacture her products in China became problematic when tariffs increased dramatically.​

In an interview with NewsNation on April13, Benike said that she budgeted for tariffs in the 20%-30% range. But after the Trump administration increased duties on Chinese imports, her costs jumped by 145%, stranding her shipment overseas. 

She launched a GoFundMe campaign in April to raise $229,000 just to get her products released.

O'Leary confirmed to Kelly he was familiar with the deal and Benike's dilemma. "This is certain death for some businesses," he said. "It's insane."

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But that wasn't the only issue on his radar. 

O'Leary also criticized the growing number of cases where Chinese companies allegedly copy American inventions—and then sue the original creators in U.S. courts. "The crazy thing is Chinese companies use the American legal system to sue American companies after they've knocked them off," he said.

Benike took to LinkedIn on April 10 to argue that products with American patents should be exempt from the tariffs. 

"Tariffs and IP theft should be two different conversations," she wrote. O'Leary, meanwhile, supports tariffs as a way to hold China accountable for what he described as widespread disregard for intellectual property rights.

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According to the FBI, approximately 80% of U.S. economic espionage cases in recent years have involved conduct benefiting China. The U.S. Trade Representative's 2025 National Trade Estimate Report also urged China to expand civil liability for misappropriation and increase criminal penalties for IP violations.

Meanwhile, small businesses remain caught in the middle. The American Action Forum estimated that nearly 40% of Chinese imports are purchased by small businesses, many of which don't have the capital to weather a 100%+ tariff spike.

A Budget Lab study from Yale in March found that tariffs have driven up consumer prices by 2.3%, equaling a $3,800 hit to the average U.S. household. For small firms, that's the difference between growth and closure.

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