Risks and Strategies for Trademark Registration in China

Time:2025-05-06

Source:Kangxin Partners, P. C.

Author:

Type:Trademark


Jurisdiction:China

Publication Date:2025-05-06

Technical Field:{{fyxType}}

Introduction

Trademarks, as the significant symbols of corporate brands, carry the commercial reputation and market value of enterprises. In China, with the vigorous development of the market economy and the enhancement of intellectual property protection awareness, trademark registration has become a crucial part of corporate brand building. However, the process of trademark registration is not always smooth, and enterprises may face various risks during this process. This article will delve into the main risks associated with trademark registration in China and explore corresponding strategies to provide guidance for enterprises.


Risks of Trademark Registration

1. Risk of Trademark Rejection

Trademark rejection refers to the refusal of trademark registration by the Trademark Office during the examination process, as the applied trademark does not comply with the relevant provisions of the Trademark Law. The main reasons for trademark rejection include:

•Lack of Distinctiveness: The distinctiveness of a trademark refers to its ability to distinguish the source of goods or services for consumers. If a trademark is too simple, common, or too close to the generic name or graphic of the goods, it may lack distinctiveness.

•Conflict with Prior Rights: Prior rights include trademarks already registered by others, unregistered trademarks used by others, and rights such as copyright and personal name rights enjoyed by others. If the applied trademark is the same or similar to the prior rights of others, it may cause a conflict of rights, leading to trademark rejection.

•Violation of Prohibited Terms: Article 10 of the Trademark Law clearly stipulates the signs that cannot be used as trademarks, such as the name of the country, national flag, national emblem, etc. If the applied trademark violates these prohibited terms, it will also be rejected.


2. Risk of Trademark Hijacking

Trademark hijacking refers to the act of others registering a trademark before the trademark owner. The hijacker may act out of malice, intending to obtain improper benefits through trademark hijacking, or to prevent the trademark owner from entering the market. Trademark hijacking not only prevents enterprises from using their own trademarks in the target market, making brand promotion difficult and market development obstructed, but also forces enterprises to invest a lot of time and money in dealing with trademark ownership disputes, and may even face high compensation costs.


3. Risk of Trademark Infringement

Trademark infringement refers to the act of using a trademark that is the same or similar to the registered trademark of the trademark registrant without their permission, on the same or similar goods, which is likely to cause confusion among consumers. Trademark infringement not only harms the legitimate rights and interests of the trademark registrant, but also brings economic losses to enterprises, including a decrease in product sales, a reduction in market share, etc. Trademark infringement behavior will damage the corporate brand image and reduce consumers' trust in the enterprise.


4. Risk of Trademark Use

The risks of trademark use are mainly reflected in the following aspects:

•Non-standard Use: Enterprises do not use trademarks in accordance with the drawings and approved scope on the trademark registration certificate, such as arbitrarily changing the trademark drawings, using beyond the approved goods or services, etc., which may lead to the revocation of the trademark.

•Non-use for Three Consecutive Years: According to Article 49 of the Trademark Law, if a registered trademark is not used without justifiable reasons for three consecutive years, any unit or individual may apply for the revocation of the registered trademark.


Strategies

1. Global Trademark Layout

For enterprises with plans for international development, it is necessary to register trademarks in advance in the target market countries or regions to prevent trademark hijacking and ensure the global protection of the brand.

2. Cross-class Trademark Application

Enterprises should plan a multi-class trademark application strategy reasonably according to the possibilities of future brand development, to ensure the legal protection of the brand in different goods or services.

3. Establish Trademark Monitoring System

Enterprises can use big data and artificial intelligence technology to monitor the dynamics of trademark applications in real time, and promptly find trademark applications that may infringe on their brand rights.

4. Actively Protect Rights

Once trademark infringement behavior is discovered, enterprises should take legal measures in time, such as sending warning letters, filing lawsuits, etc., to protect their legitimate rights and interests.

5. Choose Professional Trademark Agency

Professional trademark agencies have rich experience and professional knowledge, and can help enterprises carry out various tasks such as trademark inquiry, application, and monitoring, reducing the risks of trademark registration. Enterprises should choose to cooperate with professional trademark agencies with good reputation and high-quality service.

6. Establish Trademark Management System

Enterprises should establish a complete trademark management system to regulate the use, maintenance, and protection of trademarks, ensuring the legal and compliant use of trademarks.


Conclusion

Trademark registration is an important link in corporate brand building, but there are many risks in the process. Enterprises should fully recognize these risks and take effective strategies, such as carrying out trademark layout in advance, strengthening trademark monitoring and rights protection, choosing professional trademark agencies, and enhancing trademark protection awareness. Through scientific trademark management and risk prevention, enterprises can better protect their intellectual property rights, improve brand value and market competitiveness, and achieve sustainable development.