Plight of Trademark Application in China
In recent years, the number of trademark applications in China being rejected by the China Trademark Office (CTMO) has increased under the ground of conflict in cited mark.
China strongly prefers all trademark applications to designate goods/services according to the Nice Classification, and it has no explicit requirement for applicants to prove that trademark is being used at any time, unlike in the United States and the Philippines. CTMO does not conduct voluntary investigations. One exception is when a third party raised the non-use cancellation proceeding to challenge a trademark registration. If the trademark owner cannot provide proof of use within the three prior years, the trademark registration will be cancelled under the trademark law. In the absence of third-party challenge, the trademark will remain valid.
Moreover, it is difficult to oppose or invalidate a trademark registration in China under the ground of bad faith. This incentivizes trademark speculators to file trademark applications and also incentivizes brand owners to file far more trademark applications in far more classes to block trademark speculators.
Over the past 10-15 years, China has encouraged trademark applications in many ways through their efforts to improve system for online applications, increase the number of counter and cut official fees.
For all of these reasons and more, the number of trademark applications has tremendously increased: more than 760,000 trademark applications were filed in 2006, and that number increased to 2.8 million in 2015. In 2016, more than 3.6 million applications were filed.
Meanwhile, CTMO has been hiring a number of new trademark examiners whose default position is to reject any application that seems like it might conflict with any trademarks.
This all adds up to an increasingly harsh environment for filing trademark applications in China. Every new trademark application is another potential conflict for subsequently filed applications. In our general practice, reporting rejections becomes our day-to-day work, and though it’s hard to prove causation it sure doesn’t feel like a coincidence.
If your company’s goal is just simply to manufacture products in China without fear of someone else interfering with production or exports, all is well. But if the goal is establish a brand in China, the only solution is to find a new brand name.
Therefore, you must register your trademarks both early and often, and conduct meaningful searches before filing each and every application. Even if a trademark speculators doesn’t take your mark, one of the millions of new trademark applications each year might block your application on other grounds.
If you wish to obtain more information or assistance, please visit the official website of Kaizen CPA Limited at www.kaizencpa.com or contact us through the following and talk to our professionals:
Tel: +852 2341 1444
Mobile: +852 5616 4140, +86 152 1943 4614
WhatsApp/ Line/ Wechat: +852 5616 4140
Skype: kaizencpa
Email: info@kaizencpa.com
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