Recently, relevant Chinese authorities have released the "Draft Amendments to the Trademark Law of the People's Republic of China" for public consultation. Comprising 9 chapters and 84 articles, the draft proposes comprehensive optimizations and upgrades to the current trademark system from multiple dimensions. This revision adopts a problem-oriented approach, focusing on prominent issues within the trademark field. It aims to refine the systems for trademark registration, management, and protection, while codifying proven practical measures into law. This represents another major overhaul of the Trademark Law since its last amendment in 2019.
Key Proposed Revisions:
1. Refining the Foundations of Registration
The draft provides a more precise definition of a trademark as "a sign used to identify and distinguish the source of goods or services." It also expands the types of registrable signs to include motion marks, aligning with the trend of diversified brand expression in the digital era. Furthermore, it supplements the list of non-traditional signs (like three-dimensional marks) that are prohibited from registration with terms such as "color combinations, sounds, and dynamic effects," making the rules more comprehensive.
2. Strengthening Measures Against Bad-Faith Registration
A significant highlight of this revision is its direct targeting of trademark hoarding and bad-faith squatting. A new provision explicitly stipulates that trademark applications filed "not for the purpose of use and obviously exceeding normal production and business needs" shall be refused, providing a more direct legal basis to combat such practices. Additionally, it moves to prohibit acts of obtaining registration "by fraud or other illegitimate means" to the application stage itself and establishes fines for malicious applications, guiding trademark registration back to its fundamental purpose of use.
3. Comprehensively Enhancing the Trademark Protection System
The draft strengthens the protection for unregistered trademarks and prior rights. It clearly states that applications for identical or similar trademarks will be refused if the applicant, aware of another party's prior use of an unregistered trademark, files based on specific relationships such as contractual or business connections. Moreover, it refines the expression from "shall not infringe upon prior rights of others" to "shall not harm the existing prior lawful rights and interests of others," offering broader and more rigorous protection. Regarding infringement compensation, the subjective requirement is changed from "malicious infringement" to "intentional infringement," aligning the terminology closer with judicial practice.
4. Increasing Penalties and Regulating the Agency Industry
The draft substantially raises the fine amounts for various trademark violations and introduces more detailed penalty tiers. Notably, it introduces specific regulatory clauses for trademark agency practitioners, prohibiting them from accepting assignments independently or practicing at multiple agencies simultaneously. Penalties for non-compliant trademark agencies are also significantly increased, including substantial fines and potential suspension from handling agency business for serious violations, aiming to thoroughly cleanse the industry environment.
5. Optimizing Procedures and Service Efficiency
To improve examination efficiency, the draft shortens the opposition period after the preliminary approval announcement from three months to two months. It also mandates the trademark registration department to enhance the construction of informatized and intelligent public service systems to improve service convenience. Furthermore, it introduces a new provision allowing applicants to withdraw their trademark applications, granting them more procedural flexibility.
6. Unifying the Management System and Enhancing Enforcement Coordination
The draft consolidates various former administrative titles (e.g., "Trademark Office of the State Administration for Industry and Commerce") into a unified term "State Council Trademark Administration Department," reflecting further integration of registration and management functions. It also requires the establishment of a coordination mechanism between the registration management department and the enforcement departments to strengthen information sharing and collaborative efforts, fostering more efficient regulatory synergy.
Conclusion
This Draft Amendments to the Trademark Law constitutes a systematic legal upgrade. It directly addresses current prominent issues such as bad-faith registration, abuse of rights, and irregularities in the agency market. By refining substantive rules, increasing penalties, and optimizing procedures, it strives to create a fairer, more transparent, and predictable legal environment for trademarks. The draft actively incorporates new elements from commercial practice and emphasizes technology-enabled public services, demonstrating the law's evolution to keep pace with the times.
Disclaimer: This analysis is based on the publicly released draft text. The final content is subject to the officially promulgated law.
Source: China National Intellectual Property Administration.
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