China will further regulate trademark registration and step up its crackdown on deceptive and misleading trademarks to encourage innovation and support high-quality economic development, according to a newly revised law.
The amended Trademark Law was adopted on Friday as the Standing Committee of the National People”s Congress, the country’s top legislative body, concluded its latest session. Consisting of 87 articles across nine chapters, the law will take effect on Jan 1, 2027, in response to public concerns over trademark-related issues.
“In recent years, new situations and problems have emerged in China’s trademark field, particularly the repeated occurrence of malicious trademark applications that seriously squeeze public resources in this regard,” the NPC Standing Committee’s Legislative Affairs Commission said.
“At the same time, insufficient penalties for infringement, excessive rights enforcement by trademark registrants and disorder among trademark agencies have also become acute,” the commission added.
Malicious trademark registrations include conduct that violates the principles of legality and good faith, such as trademark hoarding and squatting, unauthorized appropriation, imitation, infringement of others’ prior rights, misuse of public resources, and large-scale or repeated bad-faith registrations.
To address these issues, stimulate the innovation vitality of market entities and effectively safeguard fair market competition, China has comprehensively revised the Trademark Law, the commission said.
It described the revision as a significant step toward implementing the national outline for building an intellectual property powerhouse and promoting the high-quality development of the socialist market economy.
The amended law adds a dedicated chapter on trademark registration. On one hand, it adapts to the growth of the mobile internet and digital technologies by expanding the scope of registrable trademarks to meet the needs of emerging industries and stimulate economic vitality. On the other, it imposes stricter requirements on trademark applicants.
For example, the law stipulates that trademark applications filed without an intention to use the mark or beyond normal business needs will be rejected. Individuals or entities that register trademarks in bad faith and cause adverse effects will receive warnings from trademark authorities and face fines of up to 100,000 yuan ($14,710).
The law also provides that applicants who knowingly register trademarks that are deceptive or likely to mislead the public about a product’s quality, craftsmanship, raw materials or place of origin, thereby causing adverse effects, will bear legal liability.
In addition, if a registered trademark is used in a misleading manner, trademark authorities will order corrective action within a specified period. If illegal business turnover exceeds 50,000 yuan, a fine of up to five times the turnover may be imposed. If the turnover is less than 50,000 yuan, a fine of up to 250,000 yuan may be levied.
Failure to rectify the violation within the prescribed period will result in the revocation of the registered trademark, according to the law.
Noting that some trademark registrants fail to use their trademarks for extended periods, the revised law clarifies that a registered trademark that remains unused for three consecutive years without a legitimate reason will be revoked.
In addition, trademark agencies are required to register their own information and that of their employees with the trademark authority under the State Council, China’s Cabinet, in accordance with the law.
caoyin@chinadaily.com.cn
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