How China Improved Its First-to-file Trademark System

In China, trademark applications have been increasing rapidly during the past 10 years (see Table 1). The number reached about 7.83 million in 2019. Applications have far exceeded the real demand of commercial activities, among which a great number weren't filed for use but for handsome profits. The significant number of malicious applications is the direct result of implementing the first-to-file system, which is inherently flawed in granting exclusive rights separately from actual use. The inherent drawbacks – including market players' pursuit for of trademarks for interest, misunderstanding the real value of trademark rights and the decrease of official application fees – collectively lead to increasing trademark squatting and hoarding. China has been endeavoring to abate the negative impacts by improving the protection system in legislation and in practice.