Bad Faith Trademark Filings in China
China is a Hotspot for Trademark Squatting
Every year, thousands of international brands discover that their trademarks have already been registered in China by third-party entities. Imagine spending years building a brand, only to be locked out of the Chinese market by an opportunistic trademark squatter.
For companies caught in this trap, the consequences are usually severe: blocked market access, damaged brand reputation, confused consumers, and often expensive legal battles to reclaim their intellectual property rights. While Chinese authorities are increasingly cracking down on bad faith trademark applications, the burden still falls on companies to protect themselves proactively.
Oppose Bad Faith China Trademarks Early and Often
Early opposition to these fraudulent filings is essential for several reasons:
1. Deterrence: Sending a Strong Message
By opposing bad faith filings as soon as they arise, you send a clear message that your brand won’t be an easy target. This proactive stance can discourage future squatters and opportunists who might otherwise see your brand as a potential payday.
2. Preserving Brand Reputation
When squatters succeed in registering your trademark, they often misuse it, which can damage your brand’s reputation. Customers could be confused or misled, associating your brand with inferior or unauthorized products. Early opposition helps preserve your brand’s integrity and reputation.
3. Protecting Market Access
In China, owning a registered trademark provides significant control over a brand’s presence in the market. A squatter who successfully registers your trademark could block your legitimate products from entering China, causing costly delays and hindering growth opportunities. Opposing bad faith filings early can help keep your path to the market clear.
4. Strengthening Your Legal Position
By consistently opposing bad faith applications, you reinforce your brand’s presence and demonstrate a history of proactive brand protection. This pattern of protection can strengthen your position in future disputes and shows Chinese authorities that your brand is serious about enforcing its intellectual property rights.
How to Oppose Bad Faith China Trademark Filings
1. Monitor Trademark Filings
Regularly monitor the Chinese Trademark Office’s database for suspicious filings related to your brand. Promptly identifying unauthorized filings is essential to mounting a timely opposition.
2. Work with Experienced China IP Counsel
Navigating China’s trademark opposition process requires specialized knowledge. Partner with a China trademark attorney experienced in opposing China trademark applications. Skilled counsel can make the difference between a successful opposition and a drawn-out, costly legal battle.
3. Gather Evidence
Evidence is key to winning an opposition case. Gather proof of your brand’s prior use, such as sales records, marketing materials, and advertisements showing your trademark’s presence in China or internationally. This evidence supports your claim that the application was filed in bad faith. The following are what we typically ask our clients to provide when we are opposing a China trademark filing:
- Sales records and invoices
- Marketing materials and advertisements
- Social media presence and engagement
- Distribution agreements
- Website analytics from Chinese visitors
- Trade show participation records
4. File a Timely Opposition
The window for filing an opposition in China is limited, so quick action is essential. Once you identify a suspicious application, work with your counsel to submit a well-crafted opposition document that clearly outlines the grounds for opposition and references relevant evidence and applicable Chinese law. And waiting too long could leave limited options—a situation we unfortunately encounter all too often.
Chinese companies are aware of these time constraints, and it is not uncommon for them to pretend to negotiate a trademark transfer with no intention of following through, simply to run out your trademark opposition clock.
By taking proactive measures and opposing bad faith filings early and often, you should be able to safeguard your brand reputation and protect your China market access.
Consider Further Legal Action if Necessary
If an opposition is unsuccessful, other legal avenues are available. For instance, you may seek an administrative review with the Chinese Trademark Review and Adjudication Board. In extreme cases, filing a civil lawsuit may be warranted, especially if there is substantial financial harm or damage to brand reputation.
Act Early to Protect Your Brand in China
Proactive action is the key to protecting your brand in China. By monitoring filings, opposing bad faith applications early, and consistently defending your trademark, you can safeguard your brand’s reputation and secure your path into the Chinese market. Don’t wait until a squatter has succeeded in registering your mark—take preventive steps now to deter bad faith actors, protect your rights, and safeguard your brand’s future in China.
