A newly amended Chinese trade mark law has been approved. The
amendments take place against the backdrop of an ongoing trade war
between China and the USA, which has its roots in international
complaints over unfair Chinese trade practices. The new law holds
some significant and positive changes.
Certain aspects of China's current system for trade mark
protection result in brand owners often encountering difficulties
when trying to secure robust protection over their trade marks.
China's trade mark registration system is based on a
"first to file" rule, rather than a "first to
use" rule. It has resulted in vast numbers of "bad
faith" applications: an application made by an individual who
knows that the trade mark belongs to someone else. China has also
received criticism for not taking firm enough action against the
infringing use of trade marks on counterfeit goods.