China’s new trade mark laws: What brand owners need to know
6 mins reading time
China’s revised trade mark law takes effect on 1 January 2027 and will affect any business that manufactures, provides or sells goods or services in China. Online use of a brand will count as trade mark use in China, which has implications for any business that trades online. The opposition period will also shorten from three months to two, and trade marks left unused for three consecutive years will face a greater risk of cancellation. Because China remains a first-to-file jurisdiction, brand owners should review their China trade mark strategy and secure registrations before the new law takes effect.
A major overhaul of China’s trade mark laws take effect on 1 January 2027, bringing significant changes for businesses that manufacture, provide or sell goods or services in China.
One of the most significant changes is that China will recognise online use of a brand as trade mark use in China. This affects every business that trades online. and may increase the circumstances in which online trading activity can be relied upon as trade mark use in China. Businesses whose online use conflicts with another party’s registered Chinese trade mark may therefore face increased risk of enforcement action, even if they are not actively targeting the Chinese market.
Other key reforms introduce stronger measures against trade mark squatting (where third parties attempt to secure registrations for brands owned and used by others in an attempt to obtain a commercial advantage) and bad-faith filings, place greater emphasis on genuine use of trade marks and shorten the opposition period for challenging conflicting applications.
Whether your business already holds Chinese trade mark registrations, manufactures products in China, works with Chinese suppliers or distributors, or has future expansion plans, now is a good time to review your China trade mark strategy before the new law takes effect.
What is changing under China’s new trade mark law?
| Change | Position until 31 December 2026 | Position from 1 January 2027 | Practical implications |
|---|---|---|---|
| Trade mark hoarding and bad-faith filings | Existing provisions addressed bad-faith filings, but large-scale speculative filing activity remained a concern. | Applications filed without a genuine intention to use the mark, and which clearly exceed reasonable business needs, may be refused. Additional penalties may also apply to bad-faith applicants. | This is intended to discourage trade mark squatting and help improve the overall quality of the register. While welcome, brand owners should still register early, as China remains a first-to-file jurisdiction. |
| Opposition period | Trade mark applications could be opposed within three months of publication. | The opposition period will reduce to two months. | Businesses will have less time to identify and challenge conflicting applications. Effective watching and monitoring strategies will become increasingly important. |
| Unused registrations | Non-use cancellation actions were generally initiated by third parties. | Chinese authorities will gain the power to initiate non-use cancellation proceedings for trade marks that have not been used for three consecutive years. | Businesses should ensure they are actively using their registered marks and retaining evidence of that use. Portfolio reviews may be worthwhile to identify registrations that could be vulnerable. |
| Online use | Online use was not expressly recognised in the legislation. | Use through the internet and other digital channels will be expressly recognised as trade mark use. | This reflects the realities of modern commerce and may assist businesses that rely on e-commerce, online advertising and social media activity when demonstrating use of their marks. |
| Motion marks | Motion or dynamic marks were generally not registrable. | Dynamic and motion marks will become registrable. | Businesses using animated logos, digital branding assets or other motion-based branding will have additional opportunities to protect those elements. |
What do China’s new trade mark laws mean for brand owners?
Overall, the reforms are a positive development for businesses seeking to protect their brands in China. The changes are intended to strengthen the integrity of the trade mark system by encouraging genuine commercial use, reducing speculative filings and modernising the law to reflect the realities of online commerce.
For brand owners, this should result in a more reliable Register and make it more difficult for opportunistic third parties to obtain registrations as a bargaining tool or commercial leverage.
However, the reforms do not alter one of the fundamental features of the Chinese trade mark system: China remains a first-to-file jurisdiction. Businesses should therefore continue to take a proactive approach to brand protection by securing trade mark registrations before entering the market (including online), commencing manufacturing arrangements or engaging local distributors and commercial partners.
What does this mean for existing trade mark registrations in China?
Businesses with registered trade marks in China should ensure they keep evidence that shows genuine use of their marks. Examples include:
- product packaging and labelling;
- sales records and invoices;
- advertising and marketing materials; and
- online promotional content and e-commerce activity.
Maintaining clear evidence of use has always been important, but the revised law further reinforces the need for trade mark owners to actively use and support their registrations.
Why secure trade mark protection in China?
Even businesses that do not currently sell products in China may benefit from obtaining trade mark protection there.
China remains one of the world’s most important manufacturing and supply-chain hubs. Applying the trade mark to goods at the time of manufacture, or exporting branded goods from China, both constitute use of the trade mark in China. If you have not secured the trade mark yourself, that manufacture and export can potentially infringe third-party Chinese trade marks. Businesses frequently engage Chinese manufacturers, suppliers, distributors or logistics providers before entering the market directly. Securing trade mark protection can help:
- reduce the risk of trade mark squatting;
- prevent manufacturers, distributors or third parties from registering your brand;
- support enforcement against counterfeit goods;
- protect products manufactured in China for export; and
- preserve future expansion opportunities in one of the world’s largest consumer markets.
In many cases, obtaining protection early is considerably more cost-effective than attempting to recover rights after a dispute arises.
How we can help protect your brand in China
The changes taking effect on 1 January 2027 provide a timely opportunity for businesses to review their China trade mark portfolios and international brand protection strategies.
Macpherson Kelley’s Intellectual Property team can assist with:
- filing new trade mark applications in China;
- reviewing existing Chinese trade mark portfolios;
- developing international trade mark filing strategies;
- monitoring overseas registers for conflicting applications; and
- advising on enforcement and trade mark squatting issues.
If your business manufactures, sources, exports or plans to expand into China, please contact our experienced Intellectual Property team to discuss how best to secure and protect your brand in this important jurisdiction.
The information contained in this article is general in nature and cannot be relied on as legal advice nor does it create an engagement. Please contact one of our lawyers listed above for advice about your specific situation.
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China’s new trade mark laws: What brand owners need to know
China’s revised trade mark law takes effect on 1 January 2027 and will affect any business that manufactures, provides or sells goods or services in China. Online use of a brand will count as trade mark use in China, which has implications for any business that trades online. The opposition period will also shorten from three months to two, and trade marks left unused for three consecutive years will face a greater risk of cancellation. Because China remains a first-to-file jurisdiction, brand owners should review their China trade mark strategy and secure registrations before the new law takes effect.
A major overhaul of China’s trade mark laws take effect on 1 January 2027, bringing significant changes for businesses that manufacture, provide or sell goods or services in China.
One of the most significant changes is that China will recognise online use of a brand as trade mark use in China. This affects every business that trades online. and may increase the circumstances in which online trading activity can be relied upon as trade mark use in China. Businesses whose online use conflicts with another party’s registered Chinese trade mark may therefore face increased risk of enforcement action, even if they are not actively targeting the Chinese market.
Other key reforms introduce stronger measures against trade mark squatting (where third parties attempt to secure registrations for brands owned and used by others in an attempt to obtain a commercial advantage) and bad-faith filings, place greater emphasis on genuine use of trade marks and shorten the opposition period for challenging conflicting applications.
Whether your business already holds Chinese trade mark registrations, manufactures products in China, works with Chinese suppliers or distributors, or has future expansion plans, now is a good time to review your China trade mark strategy before the new law takes effect.
What is changing under China’s new trade mark law?
| Change | Position until 31 December 2026 | Position from 1 January 2027 | Practical implications |
|---|---|---|---|
| Trade mark hoarding and bad-faith filings | Existing provisions addressed bad-faith filings, but large-scale speculative filing activity remained a concern. | Applications filed without a genuine intention to use the mark, and which clearly exceed reasonable business needs, may be refused. Additional penalties may also apply to bad-faith applicants. | This is intended to discourage trade mark squatting and help improve the overall quality of the register. While welcome, brand owners should still register early, as China remains a first-to-file jurisdiction. |
| Opposition period | Trade mark applications could be opposed within three months of publication. | The opposition period will reduce to two months. | Businesses will have less time to identify and challenge conflicting applications. Effective watching and monitoring strategies will become increasingly important. |
| Unused registrations | Non-use cancellation actions were generally initiated by third parties. | Chinese authorities will gain the power to initiate non-use cancellation proceedings for trade marks that have not been used for three consecutive years. | Businesses should ensure they are actively using their registered marks and retaining evidence of that use. Portfolio reviews may be worthwhile to identify registrations that could be vulnerable. |
| Online use | Online use was not expressly recognised in the legislation. | Use through the internet and other digital channels will be expressly recognised as trade mark use. | This reflects the realities of modern commerce and may assist businesses that rely on e-commerce, online advertising and social media activity when demonstrating use of their marks. |
| Motion marks | Motion or dynamic marks were generally not registrable. | Dynamic and motion marks will become registrable. | Businesses using animated logos, digital branding assets or other motion-based branding will have additional opportunities to protect those elements. |
What do China’s new trade mark laws mean for brand owners?
Overall, the reforms are a positive development for businesses seeking to protect their brands in China. The changes are intended to strengthen the integrity of the trade mark system by encouraging genuine commercial use, reducing speculative filings and modernising the law to reflect the realities of online commerce.
For brand owners, this should result in a more reliable Register and make it more difficult for opportunistic third parties to obtain registrations as a bargaining tool or commercial leverage.
However, the reforms do not alter one of the fundamental features of the Chinese trade mark system: China remains a first-to-file jurisdiction. Businesses should therefore continue to take a proactive approach to brand protection by securing trade mark registrations before entering the market (including online), commencing manufacturing arrangements or engaging local distributors and commercial partners.
What does this mean for existing trade mark registrations in China?
Businesses with registered trade marks in China should ensure they keep evidence that shows genuine use of their marks. Examples include:
- product packaging and labelling;
- sales records and invoices;
- advertising and marketing materials; and
- online promotional content and e-commerce activity.
Maintaining clear evidence of use has always been important, but the revised law further reinforces the need for trade mark owners to actively use and support their registrations.
Why secure trade mark protection in China?
Even businesses that do not currently sell products in China may benefit from obtaining trade mark protection there.
China remains one of the world’s most important manufacturing and supply-chain hubs. Applying the trade mark to goods at the time of manufacture, or exporting branded goods from China, both constitute use of the trade mark in China. If you have not secured the trade mark yourself, that manufacture and export can potentially infringe third-party Chinese trade marks. Businesses frequently engage Chinese manufacturers, suppliers, distributors or logistics providers before entering the market directly. Securing trade mark protection can help:
- reduce the risk of trade mark squatting;
- prevent manufacturers, distributors or third parties from registering your brand;
- support enforcement against counterfeit goods;
- protect products manufactured in China for export; and
- preserve future expansion opportunities in one of the world’s largest consumer markets.
In many cases, obtaining protection early is considerably more cost-effective than attempting to recover rights after a dispute arises.
How we can help protect your brand in China
The changes taking effect on 1 January 2027 provide a timely opportunity for businesses to review their China trade mark portfolios and international brand protection strategies.
Macpherson Kelley’s Intellectual Property team can assist with:
- filing new trade mark applications in China;
- reviewing existing Chinese trade mark portfolios;
- developing international trade mark filing strategies;
- monitoring overseas registers for conflicting applications; and
- advising on enforcement and trade mark squatting issues.
If your business manufactures, sources, exports or plans to expand into China, please contact our experienced Intellectual Property team to discuss how best to secure and protect your brand in this important jurisdiction.