Having practiced trademark law in China for over a decade, I've witnessed firsthand the evolution of China's approach to bad-faith trademark filings. The past year has marked a decisive turning point in this battle, with CNIPA implementing its most aggressive measures yet against trademark squatters and hoarders.
The scale of this crackdown is impressive. CNIPA has rejected hundreds of thousands of applications on bad-faith grounds, imposing fines up to RMB 100,000 on agencies that facilitate these filings. Some agencies have even had their licenses revoked entirely – a clear message that the authorities are targeting not just individual applications but the entire ecosystem supporting trademark abuse.
What's driving this change? The 2019 revision of China's Trademark Law laid the groundwork, introducing the principle of good faith (Article 7.1) and creating specific grounds for refusal based on malicious applications without intent to use (Article 4). But it's the rigorous implementation of these provisions that's making the real difference.
I've noticed examiners increasingly using absolute grounds for refusal as weapons against suspicious applications. Articles 10(1)(7) and 10(1)(8) – covering deceptive marks and those "detrimental to socialist morality" – are being deployed with remarkable frequency. And once your application is refused on these grounds, good luck overturning it – success rates at review hover around a dismal 5%.
The bad-faith tactics have grown more sophisticated too. Beyond classic trademark squatting, we're seeing strategic targeting of multiple marks from a single brand owner, systematic registration of marks similar to various popular brands, and targeting of geographical names or landmarks. CNIPA's guidelines now specifically address these patterns as indicators of bad faith.
Looking ahead, the draft revision of the Trademark Law promises even stronger measures: higher fines (up to RMB 250,000), potential criminal sanctions for severe cases, and mechanisms allowing pirated marks to be transferred to their rightful owners. These changes can't come soon enough for the brands I represent.
So what should brand owners do in this environment? First, don't abandon the fundamentals – file early and comprehensively in China, covering core marks and variations across relevant classes. Second, monitor vigilantly – both application filings and market activities. When you spot a problem, act immediately with oppositions or invalidations.
The evidence requirements are becoming clearer too. Courts and examiners respond well to demonstrations of the applicant's pattern of filing similar marks, their lack of genuine business activity, and any prior knowledge of your brand. I've had particular success highlighting systematic filing behaviors that match CNIPA's bad-faith indicators.
While challenges remain – particularly for companies with large portfolios whose legitimate filing patterns might trigger scrutiny – the trajectory is clear. China is steadily moving toward a trademark system that rewards genuine commercial activity and punishes speculation.
For international brand owners who have long struggled with trademark squatting in China, this represents a welcome shift. The system isn't perfect yet, but it's improving in meaningful ways that make brand protection strategies more effective than ever before.