Trademark registration is an essential link in protecting the enterprise’s intellectual property rights in China. The selection of goods/services is a core part of the trademark registration application process, and the enterprise should carefully and reasonably choose proper goods and services when filing trademark application for registration to adequately prepare for commercial use and the protection of trademark rights. This article provides a roadmap for navigating the complexities of the Chinese classification system and implementing practices for selecting goods and services in Chinese trademark registration applications.

1.The Architecture of the Chinese Classification System

First, it is necessary to have a clear understanding of the classification system of goods and services in China. While China aligns with the NICE Classification established by WIPO, it applies a localized framework known as the ChineseClassification for Similar Goods and Services.

The most prominent feature is the subdivision of subclasses under each Class.  Each class is further divided into several subclasses according to the functional use, industry attributes and other factors of goods/services, which are represented by four-digit codes (the first two digits are the class number, and the last two digits represents the subclass). For example, Class 25 (clothing, footwear, hats) includes multiple subclasses such as 2501 (clothing), 2502 (children's clothing), 2507 (footwear), etc. TheCNIPA generally presumes that items within the same subclass are "similar," while items in different subclasses are "dissimilar," even if they belong to the same class (though there are exceptions to this rule).

In addition, the CNIPA has added a large number of common goods and service items widely used in China that are not included in the NICE Classification.  These items are marked with a "C" in the Classification system to meet the actual needs of trademark registration in China. The NICE Classification is revised annually, and the Chinese Classification systemis adjusted accordingly. Applicants must follow the latest version of the Chinese Classification System when submitting applications.

2.Strategic Selection: Balancing Protection, Cost, and Maintenance

When selecting goods and services, adopting scientific and reasonable strategies is crucial to balancing the scope of protection, application costs, and long-term maintenance.

The "Subclass Coverage" Rule

Filings trademark applications in China does notrequiring submitting any statement or evidence of mark use. To avoid gaps in protection, we recommend selecting at least one item from each subclass within a target class.  This ensures that competitors cannot register a confusingly similar mark in an overlooked segment of that class.

Even if a registration faces a non-use cancellation challenge— which requires the registrant to provide evidence of use—the mark can still be maintained for the goods that were actually used, with only the unused goods being partially cancelled.

The "Broad-to-Specific" Approach

For Classes that are particularly important to enterprises and involve a large number of products/services, we do not recommend selecting dozens or even hundreds of items in a single class. On one hand, this will significantly increase the application cost, as the trademark registration fee in China is calculated based on the number of goods/services in each class; on the other hand, it is unnecessary, because the CNIPA will not expand the protection scope indefinitely due to the increase in the number of itemsin one subclass.

It should be emphasized that the selection of goods/services must be based on the actual business scope of the enterprise and the planned development direction. We usually advise selecting the core and most important goods/services first, and then adding goods/services with an "upper concept" - especially for subclasses the enterprises does not plan to use in the short term. Basically, each subclass has such upper concept descriptions. For example, in subclass 0306, "cosmetics" includes lower-concept items such as lipstick, eye shadow, facial cream, etc. This selection strategy not only ensures that the trademark can cover the enterprise’s core business scope, but also maximizes the protection scope with a relatively low cost. More importantly, it helps the registrant provide evidence of use when defending against a "non-use cancellation" attack in the future.

In actual trademark non-use cancellation cases, according to the "Guidelines for the Examination of Trademarks" made by the CNIPA, valid use of the registered trademark on one designated good would be sufficient to maintain the registration of the mark over other similar goods. What if the registered trademark’s designated goods do not match the goods actually used? In such case, selecting an item with a relatively broad concept is particularly important. Article 19.8 of the Beijing High Court’s Trial Guidelines stipulates: If the goods actually used do not correspond to the standardized descriptions of goods and services listed in the Chinese Classification of Goods and Services, but are essentially the same as the goods designated for the trademark, or if the actually used goods are a subordinate concept of the designated goods, the evidence of use on the actually used goods can be deemed as use of the designated goods.

For example, a company registered its logo mark for "cosmetics" in Class 3 but, in practice, only engaged in the production and sale of "lipstick" products for a certain period. In this scenario, can the evidence of using the trademark on "lipstick" products submitted by the company protect its registration for the designated good "cosmetics"? The answer is yes. This is because both the "cosmetics" designated by the company’s trademark and the actually used "lipstick" belong to Subclass 0306 of Class 3, and it is clear that "cosmetics" has a broader scope and is a higher-level concept than "lipstick."  However, if the registered goods are just “facial creams” in the same subclass 0306, the evidence of using the registered trademark on "lipstick" cannotbe deemed as valid use of the registered goods since the actual used goods "lipstick" was not the designated goods in the registered trademark.

3.Comparing Madrid Designations vs. Direct National Filings

It is necessary to clarify the different review standards for goods/service descriptions between Madrid applications designating China and direct national applications, as well as the unacceptable goods/service descriptions in Madrid applications designating China.

In terms of review standards, there are obvious differences between the two application methods. For direct national applications, the CNIPA requires that the descriptions of goods/services must strictly conform to the standard names in the latest version of the Chinese Classification system. If the applicant uses non-standard names, it is recommended to attach a detailed explanation to prove that the described goods/services are consistent with the classification principles and the scope of the applied Class and could be classified into specific subclass; but even by doing this, there is still a high possibility that the CNIPA will not accept such non-standard descriptions and issues notification of amendment.

For Madrid applications designating China, the CNIPA adopts a relatively flexible examination standard for goods/service descriptions. Considering that Madrid applications are based on the international registration, the CNIPA allows the use of the goods/service descriptions in the international registration, even if they are different from the standard names in the Chinese Classification system.Therefore, when an enterprise wishes to obtain registration for goods or services that do not conform to the standard descriptions under the Chinese Classification system or if there are no proper alternative descriptions, it may consider filing through the Madrid System. However, the enterprise should be aware that if the description is too vague, ambiguous, or does not conform to China's laws, regulations and public order, it will still encounter office action by the CNIPA (typically in the form of a “notification of provisional refusal”). Below are some examples of such descriptions to which enterprises should pay particular attention:

1) Incorrect classification.  For example, filing goods belonging to Class 25 under Class 26 will result in a provisional refusal;

2) Vague or ambiguous description.  For example,the term "brokerage" in Class 36is not acceptable in trademark registration, because it is not clear enough to classify it.  The applicant may choose other specific items, such as “Investment brokerage; Business brokerage; Stocks and bonds brokerage, etc.”

3) Illegal Goods: Items related to drugs, gambling, etc..Additionally, it is advisable to avoid using the term“gaming” in descriptions, as it could be translated as“gambling” in Chinese; applicant can use the word, “game” instead;

4) Endangered Species: ivory, etc. that is strictly prohibitedfrom trade in China;

5) The "Retail/Wholesale" Restriction: China does not accept broad "retail and wholesale services" in Class 35, except when they specifically related pharmaceutical preparations and/or supplies;

6) Other unacceptable descriptions, such as NFTs, etc.

In conclusion, registering a trademark in China is not merely a filing exercise but a nuanced legal strategy. The precision with which goods and services are selected today determines the brand's enforceability tomorrow.

For foreign enterprises, it is important to collaborate with experienced Chinese trademark counsel to tailor their applications to the current CNIPA examination landscape. This proactive approach ensures a smoother registration process and secures a resilient intellectual property foundation for long-term growth in the Chinese market.