Refusal of registration and fines for bad-faith applications
The China National Intellectual Property Administration (CNIPA) will refuse registration if the applicant does not intend to use the mark and files far more applications than its business reasonably requires (Art. 19). Previously, the office looked primarily at the applicant’s bad faith; now it is enough to compare the number of applications with the company’s actual business.
Where a bad-faith application has caused harmful consequences, the applicant may be fined up to RMB 100,000 (approximately USD 14,000) (Art. 54). A trade mark agency also faces a fine of up to RMB 200,000 if it knew of the client’s intentions but still took on the instruction (Arts 65–68).
The revised law also offers better protection against brand squatting: it prohibits knowingly registering a sign that another company already uses and that has gained a certain reputation (Art. 24). The law does not prohibit defensive registrations in adjacent classes, but a company holding many such marks would be well advised to prepare in advance an explanation of why it needs them. Useful supporting materials include product launch plans, evidence of use of the mark, a description of the brand strategy and the like.
A mark must be used, and online use now counts
The law now expressly recognises use of a mark on the internet as trade mark use. This may include sales on marketplaces, social media pages and digital advertising. For many companies, online is the main sales channel in China, and such evidence will now be easier to rely on if someone seeks to have the registration cancelled.
On the other hand, unused marks will become more vulnerable: CNIPA will be empowered to cancel, on its own initiative, marks that have not been used for three consecutive years without justifiable reason; previously, this required an application from a third party. In practice, this will primarily affect companies with large portfolios containing many registered but unused marks.
Separately, the revised law also targets misleading use of marks, where a mark is displayed in such a way that consumers take it for a description of the product. For example, the packaging bears ‘零添加’, which reads as ‘no additives’, but the character ‘零’ (‘zero’) is in fact a registered mark rather than a characteristic of the product. Such use is punishable by a fine of up to five times the illegal turnover or, where the turnover is below RMB 50,000, of up to RMB 250,000.
Well-known brands protected even without registration in China
If a brand is well known in China, its owner will be able to prohibit others from registering and using copies, imitations and translations of the mark, even for unrelated goods and services (Art. 21). Previously, such cross-class protection was available only to marks registered in China, and only if the use misled the public and harmed the right holder.
Proving well-known status remains difficult: it requires data on sales, advertising spend, media coverage and the brand’s enforcement history. Labelling a mark as ‘well-known’ on goods or in advertising is still prohibited and carries a fine of up to RMB 100,000.
Procedural changes
The opposition period for third-party applications is reduced from three months to two months from publication (Art. 36). This is the change to prepare for first: there will be less time to analyse an application and agree an internal position.
The one-year bar rule is also changing (Art. 49). Currently, if a mark has been cancelled, invalidated or not renewed, a confusingly similar mark cannot be registered for one year. From 2027, the bar will apply only where the right holder has voluntarily surrendered the registration, i.e. other applicants will be able to apply for marks identical or similar to cancelled ones without waiting.
In addition, China will begin registering motion (animated) marks. In infringement disputes, the right holder will be able to choose how damages are calculated: on the basis of its own losses or the infringer’s profits (Art. 77).
| Issue | Before 1 January 2027 | From 1 January 2027 |
|---|---|---|
| Opposition period | 3 months from the date of publication | 2 months from the date of publication |
| One-year bar on registration of a similar mark | After cancellation, invalidation or non-renewal of the registration | Only after the right holder’s voluntary surrender of the registration |
| Motion (animated) marks | Cannot be registered | Can be registered |
| Calculation of damages for infringement | Primarily on the basis of the right holder’s losses | On the basis of the right holder’s losses or the infringer’s profits, at the right holder’s choice |
How to prepare
Before 1 January 2027, we recommend auditing your trade marks registered in China. It is important to understand which marks are actually used and in which classes, and whether there is evidence of such use, including marketplace and social media pages.
If you monitor third-party applications, check the publications of CNIPA at least once a month and decide on oppositions more quickly. It is also worth reviewing packaging, advertising and product listings: the mark should appear exactly as registered and must not mislead consumers.
If you have trade marks in China or are just planning to enter the Chinese market, REVERA specialists can help you review your portfolio and prepare for the new rules. Write to us at belarus@revera.legal.
