Chinese legislators are undertaking comprehensive revisions to the nation’s Trademark Law, marking a significant advancement in intellectual property rights protection. The proposed amendments, currently under review by the Standing Committee of the National People’s Congress, address critical challenges in trademark governance while reinforcing China’s commitment to creating a robust legal framework for innovation-driven economic development.
The draft legislation, comprising 84 substantive articles, specifically targets malicious trademark practices including trademark squatting, hoarding activities, and improper registrations. These measures represent China’s proactive response to emerging IP violations that have accompanied rapid economic expansion. Shen Changyu, Director of the China National Intellectual Property Administration, emphasized that while China leads globally with 49.78 million valid trademarks and 83.52 million registration applications as of December 2024, new regulatory challenges demand updated legal solutions.
Key provisions establish stringent oversight mechanisms for trademark agencies, mandating strict confidentiality of client trade secrets and imposing substantial penalties for unethical practices. Agencies found obtaining business through fraudulent means, including forgery or defamation of competitors, face fines reaching ¥200,000 (approximately $28,418) in severe cases. The draft further empowers industry associations to develop self-regulatory standards and disciplinary protocols to elevate professional service quality.
A fundamental shift introduced requires trademark applicants to demonstrate genuine usage intent, rejecting registrations that exceed normal business requirements. Individuals engaged in malicious registration practices may incur penalties up to ¥100,000, with clear criteria defining violations including appropriation of others’ prior rights, misuse of public resources, and mass registrations made in bad faith.
Concurrently, the amendments streamline administrative procedures to enhance applicant convenience while maintaining rigorous examination standards. This balanced approach aims to foster legitimate trademark utilization while deterring abusive practices. The legislative process incorporated extensive public consultation through multiple channels, reflecting China’s methodical approach to legal modernization in intellectual property protection.