The courts in China generally maintain in foreign-related OEM cases that affixing a trademark to a product should be deemed as use and that there is also a possibility of confusion. While some manufacturers have successfully defended themselves against claims of infringement, the cost is often high.
While the Trademark Law allows for parties to petition against a mark’s registration, it remains challenging for foreign companies to prove that a registered trademark should be invalidated, as collecting evidence of prior use and influence in China, as well as to show another party's bad faith, is becoming increasingly hard.
Trademark squatting has many forms. If a trademark is registered by your distributor or partner, there is still a chance that the trademark can be retrieved.
Brand owners are advised to weigh up their business needs when deciding whether to file a national application with the CNIPA or for international registration through the Madrid Protocol (designating China).
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20 July 2022
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