China's Revised Trademark Law Brings Trademark Registration Back to Institutional Foundations

Source:China IP News

On June 26, the 23rd Session of the Standing Committee of the 14th National People's Congress adopted the newly revised Trademark Law of the People's Republic of China, which will take effect on January 1, 2027. Regulating the registration and use of trademarks not only safeguards the legitimate rights and interests of market entities and consumers, but also directly affects the order of market competition. As such, it has become one of the key focuses of the revised Trademark Law. The inaugural edition of our IP Salon column invites two scholars to engage in an in-depth discussion on this topic, offering insights into the changes introduced by the revised Trademark Law.

Q1: In response to new challenges such as malicious trademark registrations and trademark hoarding, what targeted regulatory measures does the newly revised Trademark Law of China introduce?

Liu: The new revision of China's Trademark Law addresses the critical issue of malicious trademark registrations by establishing a closed-loop regulatory framework featuring preliminary trademark search, interim adjudication, ex-post accountability, and joint liability for trademark agencies.

Specifically, first, Article 19 integrates the lack of intent to use and the use of improper means, enabling the provision to apply across the three major procedures of refusal, objection, and invalidation. Meanwhile, it replaces the subjective criterion of malicious intent with the relatively objective standard of clearly exceeding the needs of normal production and business operations, thereby reducing the evidentiary burden on competent authorities. Second, Article 54 elevates malicious trademark registrations to an independently punishable violation, stipulating that where such conduct causes adverse effects, the authorities responsible for trademark enforcement may issue a warning and impose a fine of up to RMB 100,000. This makes clear that the practice of registering trademarks merely on a "try-your-luck" basis without cost consequences will no longer escape legal sanctions. Third, the revision strengthens the non-use cancellation mechanism to facilitate the timely removal of "zombie trademarks" and reduce opportunities for profit through trademark hoarding. Fourth, the revision enhances accountability for trademark agencies, further cutting off the key intermediary link in the chain of malicious trademark registrations.

Zhang: The regulation of malicious trademark registrations is one of the key focuses of this revision of China's Trademark Law, reflecting the continuous improvement of China's intellectual property governance system. Compared with previous amendments, this revision places greater emphasis on preliminary prevention and establishes a multi-dimensional regulatory framework. For example, in terms of the application of technological measures, Article 13 provides that the trademark administration department under the State Council shall strengthen the development of an information-based and intelligent public service system for trademarks. This will help improve the efficiency of trademark-related procedures, including registration and cancellation, and enhance the capacity to promptly identify malicious registration activities. Regarding regulating market entities, the revision further strengthens the regulation of the conduct of trademark agencies, agency practitioners, and trademark agency industry organizations, elevating relevant provisions previously contained in the Regulations for the Implementation of the Trademark Law of the People's Republic of China and the Provisions on the Supervision and Administration of Trademark Agencies to the level of statutory law. In addition, Article 70 grants the public the right to supervise malicious registration activities, further expanding the scope of supervisory entities.

Q2: The newly revised Trademark Law strengthens the obligation to use trademarks and guides trademark registration back to its institutional foundations of registration for use. How should the principle of registering trademarks for the purpose of use be understood?

Liu: The principle of registering trademarks for the purpose of use can be understood from three perspectives. From a subjective perspective, applicants should have a genuine intention to use the trademark. Such intent does not necessarily require immediate commercial use, but it must have a reasonable connection to the applicant's own production and business activities. From an objective perspective, trademark use must constitute commercial use that serves the function of identifying the source of goods or services, rather than merely placing a mark on product packaging as a form of "wordplay" without genuine market use. From a temporal perspective, use may refer to use that has already taken place, is currently underway, or is supported by a clear implementation plan. However, such use must correspond to actual production and business needs and must not clearly exceed those needs.

This revision is rooted in the developmental logic of trademarks — identification, use, and goodwill — and further makes the core role of use within the trademark system explicit and systematic. It promotes a shift from the concept of "registration confers rights" toward the principle that "use constitutes the foundation of trademark rights," thereby accelerating China's transition from a major trademark registration country to a leading global trademark and brand powerhouse.

Zhang: Registering trademarks for the purpose of use reflects the most fundamental and essential function of trademarks. In recent years, new challenges like malicious trademark registrations and trademark hoarding have emerged in the trademark environment. For example, some market entities accumulate hundreds of trademarks without actual business premises or operations; others engage in bad-faith registration of public symbols and initiate mass litigation against multiple competitors. Emphasizing trademark registration for the purpose of use is not only essential to the proper functioning of the trademark system itself, but also to maintaining a fair competitive environment and fostering an innovation ecosystem. Only through sustained market use can trademarks build distinctiveness, establish reputation, enhance consumer trust, and ultimately develop into brands. This will help transform Chinese products into Chinese brands and enhance their global influence.