
What Businesses Need to Know About Trade Marks in China: Protect Your Brand in the World’s Biggest Market
What Businesses Need to Know About Trade Marks in China: Protect Your Brand in the World’s Biggest Market
China’s significance in global commerce is undeniable. It serves as a central hub for both trade and manufacturing. For Australian and New Zealand businesses, China’s role is particularly prominent. According to the Australian Department of Foreign Affairs and Trade, the total stock of Australian investment in China was valued at $74.8 billion for 2024, making China Australia’s 12th largest investment destination. New Zealand and China have a large trade relationship, with China being New Zealand’s largest trading partner (See, New Zealand – China Free Trade Agreement Overview).
Engaging with China, whether through direct trade or manufacturing partnerships, requires an understanding of the country’s unique legal and economic environment. China’s “first-to-file” trade mark system presents challenges for businesses unfamiliar with its nuances, especially for Australian and New Zealand companies trading or producing goods there. This article explores key considerations for protecting your brand in this dynamic market.
Most common trade mark issues faced by Australian and New Zealand businesses in China
1. Trade Mark Squatting
One of the most significant risks when trading with China is trade mark squatting. Under China’s first-to-file system, the first entity to register a trade mark owns it, regardless of prior use elsewhere. This has led to situations where:
- Competitors or squatters register well-known foreign brands: They can block legitimate businesses from using their own trade marks in China.
- Costly legal battles: Victimized businesses often face hefty fees or protracted legal battles to reclaim their rights.
2. Lack of Use Requirement
In China, registering a trade mark does not require proof of use at the time of application. This has fuelled an increase in speculative trade mark filings by bad-faith actors who exploit this system to monetize valuable trade marks.
3. Manufacturing Risks
If you manufacture goods in China, even solely for export, using an unregistered trade mark may still constitute trade mark infringement under Chinese law. Recent court rulings have underscored that production itself can be considered “use” of a trade mark, exposing businesses to legal claims.
4. Complex Translation Issues
Brands entering the Chinese market often face challenges with transliteration or translation:
- Cultural and linguistic barriers: Failing to register Chinese versions of your brand can leave gaps in protection.
- Imitation risks: Competitors may exploit unregistered translations or transliterations to confuse consumers.
How to navigate China’s first-to-file trade mark system?
1. Early Registration
File your trade mark in China at the earliest opportunity, even if you’re not currently trading there. Be sure to register both:
- English-language trade marks
- Chinese transliterations and translations
2. Conduct Market Searches
Perform freedom-to-use searches to ensure your trade mark does not conflict with existing registrations. This is crucial for avoiding disputes.
3. Adapt to Cultural Preferences
Work with local experts to develop a Chinese version of your brand that resonates with consumers while ensuring full legal protection. Halfords IP has a trusted network of experts in China.
4. Monitor and Enforce Your Trade Mark
Regularly monitor your trade marks in China to identify potential infringements. Take swift action through available legal channels if issues arise.
Halfords IP: Expert Guidance for Navigating China’s Trade Mark System
Whether you’re trading or manufacturing in China, or simply planning to enter the market, securing your trade marks is essential to safeguard your brand. At Halfords IP, we routinely help Australian and New Zealand businesses protect their intellectual property in China’s complex legal environment. From trade mark registration to enforcement, our experienced attorneys and partners can guide you every step of the way.
For expert guidance in trade mark registration and enforcement, contact Aparna Watal.
Back