Nina LI , Partner of IP March

The newly revised Chinese Trademark Law has recently been promulgated and will take effect on January 1, 2027. To assist you in navigating the key changes, we have summarized below the most significant provisions that are relevant to trademark owners.

1. 1.  Use of a trademark includes use through information networkssuch as the internet. (Article 2)
   

2. 2.  Motion trademarks will be registrable. (Article 14)
   

3. 3.  The scope of marks which shall not be used or registered astrademarks will be expanded.
   

Marks that are identical or similar to the name, party flag, party emblem, medals, or iconic elements related to important theoretical achievements or historical events of the Communist Party of China shall not be used or registered as trademarks. Marks that are deceptive and likely to cause the public to misidentify the quality, technology, raw materials, or place of origin of the goods shall not be used or registered as trademarks. (Article 15)

4. 4.  More detailed rules on what constitutes bad-faith trademarkapplications will be provided and the corresponding legal consequences willbe set out.
   

An application for trademark registration that is not for the purpose of use and clearly exceeds normal business needs shall not be approved. No application for trademark registration shall be filed by deceptive or other improper means. (Article 19)

Where a trademark applicant engages in malicious trademark applications and has caused adverse effects, the trademark law enforcement authority shall issue a warning and may impose a fine of up to RMB 100,000.(Article 54)

5. 5.  Protection on different or dissimilar goods will be expanded tounregistered well-known marks.
   

Where a trademark applied for registration on different or dissimilar goods is a reproduction, imitation, or translation of another person's well-known trademark, and is likely to mislead the public and cause damage to the interests of the owner of the well-known trademark, the application shall not be approved and its use shall be prohibited. (Article 21)

6. 6.  Prior lawful interests will also be protected.

No trademark applicant may infringe upon another person’s existing prior lawful rights and interests, nor may they intentionally rush to register a trademark that is already in use by another person and has acquired a certain degree of influence.(Article 24)

7. 7.  Opposition period will become shorter.
   

For a trademark that has been preliminarily approved and published, an opposition may be filed within two months from the date of publication. (Article 36)

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8. 8.  It will be possible to withdraw trademark registrationapplications and trademark review applications.
   

An applicant may withdraw an application for trademark registration or an application for trademark review. (Article 40)

9. 9.  Suspension of examination will be stipulated in four kinds ofcases.
   

In the course of examining trademark opposition, review of provisional refusal of trademark application, review of decision to disapprove of a trademark registration application, and invalidation proceedings, if the determination of prior rights or interests involved in the case must be based on the outcome of another case that is pending before a people's court or being handled by an administrative authority, the Trademark Department of the State Council may suspend the examination.(Article 41)

10. 10.  For the assignment of a collective mark or certification mark,the assignee must possess the appropriate subject qualification andsupervisory capacity.(Article 47)

11. 11.  Where the licensee fails to perform its quality assuranceobligations, the licensor shall have the right to terminate the trademarklicense contract.(Article 55)

12. 12.  The one-year restriction arising from trademark revocation,invalidation, or failure to renew has been largely abolished.

Where a trademark registrant applies to cancel its registered trademark, within one year from the date of the cancellation announcement, the Trademark Department of the State Council shall not approve any other person's application for registration of a trademark that is identical or similar to the canceled trademark on the same or similar goods. (Article 49)

13. 13.  Misleading use of a trademark will incur legal liability.

Where a registered trademark is used in a manner that misleads the public, the trademark law enforcement authority shall order correction within a specified period. If the illegal business revenue is RMB 50,000 or more, a fine of up to five times the illegal business revenue may be imposed; if there is no illegal business revenue or the illegal business revenue is less than RMB 50,000, a fine of up to RMB 250,000 may be imposed. If the violator fails to rectify within the specified period, the Trademark Department of the State Council shall cancel the registered trademark. (Article 56)

14. 14.  Improper use of a registered trademark may result in a fine. TrademarkDepartment of the State Council may cancel ex officio a registeredtrademark which has become the generic name of the designated goods, orwhere there is no justifiable reason for non-use for three consecutiveyears.
    

Where, in the course of using a registered trademark, the registrant unilaterally alters the registered trademark, the registrant's name, address, or other registration matters, the trademark law enforcement authority shall order correction within a specified period; if the violator fails to rectify within the specified period, a fine of up to RMB 50,000 shall be imposed; if the circumstances are serious, the Trademark Department of the State Council shall cancel the registered trademark. (Article 57)

Where a registered trademark has become the generic name of the designated goods, or where there is no justifiable reason for non-use for three consecutive years, the Trademark Department of the State Council may cancel the registered trademark.(Article 57)

15.  15.  Provisions concerning the liabilities and legalconsequences of registrants of collective marks and certification marks willbe introduced. 

Where a registrant of a collective mark or certification mark commits any of the following acts, the trademark law enforcement authority shall order correction within a specified period; if the violator fails to rectify within the specified period, a fine of up to RMB 10,000 shall be imposed; if the circumstances are serious, a fine of not less than RMB 10,000 but not more than RMB 100,000 shall be imposed:
(1) Failing to diligently perform trademark management duties, thereby causing harm to consumers;
(2) Without justifiable reason, refusing to permit members of the organization to use the collective mark, or refusing to permit qualified applicants to use the certification mark;
(3) Exercising the exclusive right to use a registered trademark in violation of this Law, relevant administrative regulations, and relevant state provisions, thereby causing adverse effects.(Article 60)

16. 16.  Trademark Department of the State Council may make a confirmationof the well-known status of a trademark for its overseas matters.
    

Where, in the course of overseas trademark registration examination, hearing, or handling of trademark cases, it is necessary to prove that a trademark is well known to the relevant public within China, upon the party's request, the Trademark Department of the State Council may, in accordance with the relevant provisions of this Law, make a confirmation of the well-known status of the trademark. (Article 69)

17. 17.  The public may file complaints or reports.
    

Any entity or individual has the right to file complaints or reports with the competent trademark management authority or trademark law enforcement authority regarding illegal acts such as using a registered trademark in a manner that misleads the public or infringing upon the exclusive right to use a registered trademark. (Article 70)

18. 18.  Fair use of others’ registered trademarks may be allowed.
    

Where a relevant registered trademark is used solely for the purpose of indicating information such as the intended use, applicable subjects, application scenarios, or genuine source of the goods provided, the owner of the exclusive right to the registered trademark shall not have the right to prohibit others from using it in a fair manner, except where such use is likely to cause confusion. (Article 73)

19. 19.  If any party initiates malicious trademark litigation andcauses losses to the other party, it shall bear civil liability.
    

Where a trademark lawsuit is filed by means of malicious collusion or unilateral fabrication of basic facts, the people's court shall impose penalties in accordance with the law; if losses are caused to the other party, the infringing party shall bear civil liability in accordance with the law. (Article 81)

These amendments mark another important step in the evolution of China's trademark protection system. Nevertheless, notwithstanding the first-to-file principle, proper and sufficient use of trademarks is expected to gain growing significance in China. The new law endeavors to strike a balance between the protection of prior registration and prior use, as well as between the exclusive rights of registered trademark owners and fair use by third parties. It is reasonable to anticipate that trademark practice in China will undergo notable transformations in the years ahead. In this shifting landscape, brand owners are well advised to closely monitor the Chinese market and maintain a clear understanding of the scope of their permitted activities and prohibited conduct.

Should you have any questions or require further analysis on any of the above points, please do not hesitate to let us know.