Background
Following China’s high-profile 2025 3·15 Gala exposé on substandard sanitary products, Xiaomi’s founder Lei Jun faced a viral social media campaign urging the tech giant to enter the hygiene market. Opportunists swiftly capitalized on this momentum, filing trademarks such as Xiaomi Shuqi (a pun on "comfortable period") and Lei Jin (a play on Lei Jun’s name), sparking a legal and strategic showdown over brand integrity.
Xiaomi sanitary napkin designed by netizens
Key Commercial & Legal Insights
1. Traffic Hijacking Tactics
Squatters exploited Xiaomi’s reputation for quality to divert consumer trust. Post-exposé, applicants rushed to register health-related trademarks, betting on resale profits or leveraging brand association to bypass market entry barriers.
2. Defensive Registration Gaps
While Xiaomi preemptively secured trademarks for sanitary pads and disinfectant wipes under Class 5 (Pharmaceuticals), loopholes emerged:
Ambiguous Goods Coverage: Non-identical but similar products (e.g., sanitary napkins vs. pads) left gaps in protection.
Unstable Class 5 Status: Xiaomi’s core trademark in medical supplies lacked the robustness of its Class 9 (Electronics) recognition, weakening cross-category defenses.
3. Strategic Ambiguity
Mixed messaging—retracting a "no sanitary product plans" statement while retaining related trademarks—fueled squatter speculation and public confusion.
Legal Risks
· Trademark Hoarding Allegations: Bulk registrations in Class 5 (pharma/daily chemicals) risked accusations of speculative stockpiling, leaving marks vulnerable to cancellation under China’s non-use clauses (3-year genuine use requirement).
· Brand Dilution: Cross-class squatting (e.g., Lei Jin in apparel) threatened to blur Xiaomi’s tech-focused identity, increasing consumer confusion and litigation costs.
· Reputational Damage: Vulgar parody trademarks (e.g., SU Ultra Absorb) risked viral mockery if left unchecked, eroding brand equity.
Proactive Defense Strategies
1. Integrated Surveillance Systems
Deploy AI-driven tools to monitor trademark filings and social media sentiment in real time. This enables rapid opposition during the critical 30-day preliminary review window.
2. Hierarchical Brand Architecture
Core Protection: Fortify Class 9 registrations and pursue well-known trademark (驰名商标) status for electronics.
Risk Mitigation: Use sub-brands (e.g., MiJia) for peripheral categories like hygiene, isolating potential squatting fallout.
3. Collaborative Ecosystem Governance
Partner with e-commerce platforms to:
Create a malicious squatter blacklist for shared risk mitigation.
Streamline takedown processes via pre-agreed protocols.
Conclusion
The 3·15-fueled squatting spree highlights China’s evolving brand protection landscape. Xiaomi’s challenge underscores a broader industry shift: from passive defensive registration to active, data-driven governance. By integrating real-time monitoring, strategic sub-branding, and ecosystem partnerships, companies can transform trademark management from a legal checkbox into a competitive advantage in China’s hyper-competitive markets.
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