Protecting Your Trademarks is a Must for Manufacturing in China
Foreign companies manufacturing in China often worry about their designs being stolen by local factories or competitors. However, many overlook the critical importance of protecting their trademarks. This oversight ignores a key reality: while product designs are relatively difficult to steal, trademarks are easy targets. Consequently, trademarks are usually the first to be stolen, while designs are the last. Our China lawyers encounter China-related trademark theft almost daily, whereas true cases of product design theft occur only three to five times a year.
China Trademark Law Basics
This misunderstanding of risk is compounded by a lack of knowledge about how trademarks work in China. Many international companies wrongly believe that Chinese trademarks are only relevant if they sell their products in China. Since they are just exporting their products, they assume a Chinese trademark is unnecessary. However, Chinese law grants exclusive rights to use a trademark not only for sales within China but also for manufacturing the trademarked item in China and selling it globally. Thus, when a manufacturer applies the trademark during production, it is considered trademark use under Chinese law.
If another party, such as a trademark squatter or a competitor, registers your brand’s trademarks in China, that party can completely shut down your China manufacturing operations. This can happen in two ways:
- Demanding Cessation of Trademark Use: The China registered trademark owner can demand that your Chinese factory stop using the mark, citing trademark infringement.
- Customs Seizure: The China registered trademark owner can record the trademark with China Customs, leading to the seizure of trademarked products at the port, preventing shipment. This is especially problematic if you have already paid some or all of the cost for your products, which will almost always be the case.
Register Your Brand Name as a China Trademark
If you manufacture in China, registering your trademarks is crucial. The process is straightforward and inexpensive, while the consequences of failing to register can be devastating. The best way to register your trademark in China is usually to file directly with the China Trademark Office.
While the registration process itself is straightforward, consulting with an intellectual property lawyer experienced in Chinese trademark law can help you navigate the process smoothly and maximize your protection. It’s a simple and inexpensive step to protect your business.
