China Trademark Law Updates

2020-04-28 Yue Tang
deatile

    The 13th NPC standing committee decides to amend China Trademark Law.  Below we listed the comparison between the previous version of China Trademark Law and current version of China Trademark Law.

Previous version of China Trademark   Law

Current version of China Trademark Law

Article 4

Any natural person, legal person,   or other organizations that needs to acquire the exclusive right to use a   trademark in the production and operation activities shall file an application   for trademark registration with the Trademark Office.
  Provisions of the Law regarding goods marks apply to service marks.

Article 4

Any natural person, legal person,   or other organizations that needs to acquire the exclusive right to use a trademark   in the production and operation activities shall file an application for   trademark registration with the Trademark Office.  The malicious   trademark registration application not for the purpose of use shall be   rejected.
  Provisions of the Law regarding goods marks apply to service marks.

Article   19

The trademark agency shall apply   for registered trademarks or handle any other trademark matters authorized by   the clients based on the principle of integrity, honesty and credibility and   in accordance with laws and administrative rules and regulations; and the   trademark agency shall assume confidentiality obligations for trade secrets   of the client obtained during the agency.
  The trademark that the client applies for registration may not be registered   in accordance with the Law, in which case the trademark agency shall   explicitly notify the client.
  The trademark agency knows or has already known that, where the client   applies for a trademark that falls into Article 15 and Article 32 hereof, the   trademark agency shall not accept the entrustment.
  Except for the registration of trademarks on behalf of client, the trademark   agency shall not apply for the registration of any other trademarks.

Article   19

The trademark agency shall apply   for registered trademarks or handle any other trademark matters authorized by   the clients based on the principle of integrity, honesty and credibility and   in accordance with laws and administrative rules and regulations; and the   trademark agency shall assume confidentiality obligations for trade secrets   of the client obtained during the agency.
  The trademark that the client applies for registration may not be registered   in accordance with the Law, in which case the trademark agency shall   explicitly notify the client.
  The trademark agency knows or has already known that, where the client   applies for a trademark that falls into
Article 4, Article 15 and Article 32 hereof, the trademark agency   shall not accept the entrustment.
  Except for the registration of trademarks on behalf of client, the trademark   agency shall not apply for the registration of any other trademarks.

Article   33

Where any prior right owner or   interested person believes that provisions of Paragraphs 2 and 3 of Article   13, Article 15, Paragraph 1 of Article 16, Article 30, Article 31 or Article   32 of the Law have been breached or any person believes that the provisions   of Article 10, Article 11 or Article 12 have been violated, it may raise an   objection to the Trade Office against a trademark that has been published after   a preliminary examination within three months from the date of announcement.   When no objections have been raised upon expiration of such period, the   application shall be approved for registration with issuance of a certificate   of trademark registration and announcement of the trademark.

Article   33

Where any prior right owner or   interested person believes that provisions of Paragraphs 2 and 3 of Article   13, Article 15, Paragraph 1 of Article 16, Article 30, Article 31 or Article   32 of the Law have been breached or any person believes that the provisions   of Article 4,   Article 10, Article 11, Article 12 or Paragraph 4 of   Article 19 have been violated, it may raise   an objection to the Trade Office against a trademark that has been published   after a preliminary examination within three months from the date of   announcement. When no objections have been raised upon expiration of such   period, the application shall be approved for registration with issuance of a   certificate of trademark registration and announcement of the trademark.

Article   44

The Trademark Office shall annul   the registered trademark if it violates the provisions of Articles 10, 11,   and 12 of the Law, or it was acquired by fraud or any other improper means.   Other units or individuals may request the Trademark Review and Adjudication   Board for a ruling to annul such a registered trademark.
  The Trademark Office shall notify the party concerned in writing of the   nullification of the registered trademarks. Where the party concerned is   dissatisfied with the ruling may apply to the Trademark Review and   Adjudication Board for a review within 15 days from the receipt of the   notice. The Trademark Review and Adjudication Board shall make a ruling   within nine months from the receipt of the application, and notify the party   concerned in writing. In case of prolonging such period for certain special   situations, it may be prolonged for three months after the approval of the   administrative department for industry and commerce under the State Council.   In the event that the party concerned is dissatisfied with the ruling of the   Trademark Review and Adjudication Board, it may appeal to the People's Court   within 30 days from receipt of the notice.
  Where other units or individuals request the Trademark Review and   Adjudication Board for nullification of a registered trademark, the Trademark Review and Adjudication Board shall notify   relevant parties upon receipt of the application, and request them to submit   arguments within a specified time. The Trademark Review and Adjudication   Board shall make a ruling on maintaining or nullification of registered   trademark, and notify the party concerned of such ruling. Where the period is   required to be prolonged in special circumstances, it may be extended by   three months after the approval of the administrative department for industry   and commerce under the State Council. In the event that the party concerned   is dissatisfied with the ruling of the Trademark Review and Adjudication   Board, it may appeal to the People's Court within 30 days from receipt of the   notice. The people's court shall notify the counterparty of the trademark   ruling procedures of participation in the proceedings as a third party.

Article   44

The Trademark Office shall annul   the registered trademark if it violates the provisions of Article 4, 10, 11, 12 and Paragraph 4 of Article 19 of the Law, or it was acquired by fraud or any other   improper means. Other units or individuals may request the Trademark Review   and Adjudication Board for a ruling to annul such a registered trademark.
  The Trademark Office shall notify the party concerned in writing of the   nullification of the registered trademarks. Where the party concerned is   dissatisfied with the ruling may apply to the Trademark Review and   Adjudication Board for a review within 15 days from the receipt of the   notice. The Trademark Review and Adjudication Board shall make a ruling   within nine months from the receipt of the application, and notify the party   concerned in writing. In case of prolonging such period for certain special   situations, it may be prolonged for three months after the approval of the   administrative department for industry and commerce under the State Council.   In the event that the party concerned is dissatisfied with the ruling of the   Trademark Review and Adjudication Board, it may appeal to the People's Court   within 30 days from receipt of the notice.
  Where other units or individuals request the Trademark Review and   Adjudication Board for nullification of a registered trademark, the Trademark   Review and Adjudication Board shall notify relevant parties upon receipt of   the application, and request them to submit arguments within a specified   time. The Trademark Review and Adjudication Board shall make a ruling on   maintaining or nullification of registered trademark, and notify the party   concerned of such ruling. Where the period is required to be prolonged in   special circumstances, it may be extended by three months after the approval   of the administrative department for industry and commerce under the State   Council. In the event that the party concerned is dissatisfied with the   ruling of the Trademark Review and Adjudication Board, it may appeal to the   People's Court within 30 days from receipt of the notice. The people's court   shall notify the counterparty of the trademark ruling procedures of   participation in the proceedings as a third party.

Article   63

The amount of compensation for   infringing the exclusive right to use the trademark shall be determined based   on the right owner's actual losses due to infringement or the infringer's   actual interests obtained due to the same if the actual losses are hard to be   determined, or may be determined based on times of the royalties of the   registered trademark when both the losses or the infringer's actual interests   obtained are hard to be determined. For seriously malicious infringement, the   amount of compensation may be one time – three times of the aforesaid amount   determined in light of the foregoing regulations. The amount of compensation   shall include reasonable expenses of the right owner to prevent the   infringement.

For the purpose of determining the   amount of compensation, where the account books and information regarding the   infringement are held by the infringer while the right owner has put to the   proof as practical as possible, the People's Court may order the infringer   submit such account books and information; in case the infringer refuses to   submit the account books and information or submit a false version thereof,   the People's Court may determine the amount of compensation with reference to   the right owner's claim and proof.
  Where it is hard to determine the right owner's actual losses due to   infringement, the infringer's actual interests obtained due to the same or   the royalties of the registered trademark, the People's Court shall, based on   the actual circumstance of infringement, bring in a verdict of amount up to   CNY
3 million.

Article   63

The amount of compensation for   infringing the exclusive right to use the trademark shall be determined based   on the right owner's actual losses due to infringement or the infringer's   actual interests obtained due to the same if the actual losses are hard to be   determined, or may be determined based on times of the royalties of the   registered trademark when both the losses or the infringer's actual interests   obtained are hard to be determined. For seriously malicious infringement, the   amount of compensation may be one time – five   times of the aforesaid amount determined in light of the foregoing   regulations. The amount of compensation shall include reasonable expenses of   the right owner to prevent the infringement.

For the purpose of determining the   amount of compensation, where the account books and information regarding the   infringement are held by the infringer while the right owner has put to the   proof as practical as possible, the People's Court may order the infringer   submit such account books and information; in case the infringer refuses to   submit the account books and information or submit a false version thereof,   the People's Court may determine the amount of compensation with reference to   the right owner's claim and proof.
  Where it is hard to determine the right owner's actual losses due to   infringement, the infringer's actual interests obtained due to the same or   the royalties of the registered trademark, the People's Court shall, based on   the actual circumstance of infringement, bring in a verdict of amount up to   CNY
5 million.

In trying a trademark   dispute case, the people's court shall order the party concerned to destroy   the goods carrying the counterfeited registered trademarks upon the request   of the rights holders, except for special circumstances; order shall be   issued to destroy the materials and tools mainly used for manufacturing the   goods carrying counterfeited registered trademarks and no compensation shall   be paid therefor; or under special circumstances, the aforementioned   materials and tools shall be prohibited from entering in the commercial   channels and no compensation shall be paid therefor.

None of the goods   carrying counterfeited trademarks may enter into the commercial channels   after the sole removal of the counterfeited trademark.

Article   68

If a trademark agency has any one   of the following conducts, the administrative department for industry and   commerce shall order the agency organization to rectify the same within a   specified time, give corresponding warning and impose a fine of more than   CNY10,000 up to CNY100,000; and give warnings to management in direct charges   and the other persons in direct charge and impose a fine of more than   CNY5,000 up to CNY50,000; those who have committed crimes shall be held for   criminal responsibilities:
  1. Forging/altering legal documents, seals or signatures or using   forged/altered legal documents, seals or signatures during the process of   handling trademark-related matters;
  2. Soliciting agency business by slandering other trademark agencies or   disturbing the trademark agency market order by other unjust means; and
  3. Violating provisions of Paragraphs 3 and 4 of Article 19 of the Law.
  Where a trademark agency has had conducts stipulated in the previous   paragraph, it will be recorded by the administrative department for industry   and commerce in the files of credits; in case of serious circumstances, the   Trademark Office and the Trademark Review and Adjudication Board may cease   accepting its agency business and make relevant announcement.
  Where a trademark agency violates the principle of good faith and thus   infringes the client's legal interests, such organization shall bear relevant   civil liability according to law and be punished by the industry organization   of trademark agency in accordance with the articles of association.

Article   68

If a trademark agency has any one   of the following conducts, the administrative department for industry and   commerce shall order the agency organization to rectify the same within a   specified time, give corresponding warning and impose a fine of more than   CNY10,000 up to CNY100,000; and give warnings to management in direct charges   and the other persons in direct charge and impose a fine of more than   CNY5,000 up to CNY50,000; those who have committed crimes shall be held for   criminal responsibilities:
  1. Forging/altering legal documents, seals or signatures or using   forged/altered legal documents, seals or signatures during the process of   handling trademark-related matters;
  2. Soliciting agency business by slandering other trademark agencies or disturbing   the trademark agency market order by other unjust means; and
  3. Violating provisions of
Article 4 and Paragraphs   3 and 4 of Article 19 of the Law.
  Where a trademark agency has had conducts stipulated in the previous   paragraph, it will be recorded by the administrative department for industry   and commerce in the files of credits; in case of serious circumstances, the   Trademark Office and the Trademark Review and Adjudication Board may cease   accepting its agency business and make relevant announcement.
  Where a trademark agency violates the principle of good faith and thus   infringes the client's legal interests, such organization shall bear relevant   civil liability according to law and be punished by the industry organization   of trademark agency in accordance with the articles of association.

Whoever maliciously applies for trademark registration shall be   subject to a warning, fine or other administrative punishment in light of   circumstances; whoever initiates a trademark lawsuit maliciously shall be subject   to the punishment imposed by the people's court in accordance with the law.

    According to the CNIPA, this amendment mainly involves the following three aspects:

    First, the obligation of trademark use should be strengthened, and the provision that "a malicious trademark registration application not for the purpose of use should be rejected" is added.  Such obligation is applied in the ex officio examination stage to realize the threshold of cracking down on malicious registration forward, and it is directly applied to the objection procedures and invalidation procedures as a clause for raising objection and requesting invalidation.  The CNIPA directly rejected 37 李文亮 trademarks and 63 marks related to the corona virus, such as 雷神山, 火神山, 钟南山 and “”方舱.

    The second is to standardize the regulation of trademark agency, stipulating that the trademark agency shall not accept entrustment if it knows or should know that the principal has maliciously registered trademark; once discovered, the agency will be investigated responsibility according to law.  Recently, there are several trademark agencies are punished because they represented applicants to file the trademarks, “雷神山” (lei shen shan) and “火神山” (huo shen shan) which are the name of the hospitals built for fighting against the corona virus in Wuhan, China.

    The third is to regulate the punishment measures to the applicant, the trademark agency's malicious application for trademark registration, malicious litigation action.

    Therefore, the regulation of malicious registration behavior runs through the whole trademark application registration and protection procedures, including both the applicant and the obligee as well as the agency.