Executive Takeaways
- China continues strengthening trademark regulation, including stricter oversight of trademark filings, trademark use, and agency practices.
- Recent policy initiatives indicate a continued shift toward a more comprehensive IP protection framework covering trademarks, patents, trade secrets, data assets, and emerging technologies.
- Companies operating in China should strengthen evidence preservation, internal compliance mechanisms, and IP asset management strategies.
- AI-related businesses should closely monitor evolving judicial approaches regarding AI platform liability and copyright compliance obligations.
1. Revised Trademark Law Further Strengthens Trademark Protection and Regulatory Oversight
Trend
On June 26, 2026, the revised Trademark Law was adopted and will take effect on January 1, 2027.
The amendments introduce several significant changes, including:
- Expanded cross-class protection for unregistered well-known trademarks and a mechanism allowing CNIPA recognition of well-known trademark status for overseas proceedings;
- Recognition of dynamic trademarks as registrable trademarks;
- Introduction of an ex officio cancellation mechanism by the China National Intellectual Property Administration (“CNIPA”);
- Further strengthened regulation of bad-faith trademark filings and trademark agencies;
- Shortened opposition periods.
These changes reflect China’s continued efforts to strengthen trademark protection while improving regulatory oversight over trademark registration and use.
Practical Considerations
Brand owners should consider:
- Where trademark rights are involved in overseas disputes, requesting CNIPA recognition of well-known trademark status where appropriate;
- Reviewing whether dynamic brand elements, such as animated logos, motion graphics, or interactive designs, may qualify for trademark protection;
- Maintaining comprehensive evidence of actual trademark use to address potential non-use cancellation risks;
- Reviewing trademark filing strategies to ensure registrations are aligned with actual business needs;
- Strengthening due diligence and supervision over trademark agencies;
- Updating trademark monitoring and risk response mechanisms in light of shortened opposition periods.
Further Reading：[变革与展望：新《商标法》25项重点修订中英文对照与实务解读]
2. Regulatory Scrutiny over Misleading Trademark Use Continues to Increase
Trend
China continues strengthening supervision over trademarks used in ways that may mislead consumers.
Since 2023, CNIPA has rejected approximately 1.273 million trademark applications involving relevant risks and issued ex officio invalidation decisions against 3,351 trademarks.
The 2026 Administrative Protection Work Plan for Intellectual Property Rights (《2026年知识产权行政保护工作方案》) identifies misleading use of trademarks together with product names and promotional slogans as a key enforcement focus.
Practical Considerations
Companies operating in China should:
- Review how trademarks are presented on packaging, advertising materials, and promotional campaigns;
- Establish coordination mechanisms among legal, marketing, and brand teams for trademark use review;
- Adjust existing trademark use practices where registered trademarks may create misleading commercial impressions.
3. Two Strategic Policy Documents Further Clarify Future Directions for IP Protection
Trend
China has recently issued two important strategic policy documents outlining future directions for IP protection:
- On April 17, 2026, the Supreme People’s Court issued the Implementation Plan for Judicial Protection of Intellectual Property Rights by People’s Courts (2026–2030) (《人民法院知识产权司法保护实施方案（2026-2030年）》), emphasizing protection in emerging areas including artificial intelligence and big data;
- On May 16, 2026, the 2026 Action Plan for Advancing the Development of China into a Leading Intellectual Property Nation (《2026年知识产权强国建设推进计划》) was released, outlining multiple initiatives to strengthen IP protection.
These documents provide further guidance regarding future developments in judicial protection, administrative protection, market regulation, and international IP protection.
Practical Considerations
Companies should consider:
- Monitoring developments in IP legislation and judicial practice;
- Reviewing core IP assets and strengthening protection across trademarks, patents, copyrights, and trade secrets;
- Improving IP filing, management, use, and enforcement mechanisms;
- Developing overseas IP protection strategies in connection with international expansion.
4. Intellectual Property Agency Industry Undergoes Special Rectification, Requiring Enhanced Compliance Review
Trend
On April 23, 2026, the China National Intellectual Property Administration, the Ministry of Public Security, and the State Administration for Market Regulation jointly issued the Action Plan for the “Rectification and Standardization Year” Campaign for the Intellectual Property Agency Industry (《知识产权代理行业”整治规范年”行动方案》).
The initiative focuses on addressing improper practices in the IP agency industry, including:
- Patent-related fraud;
- False applications;
- Bad-faith trademark filings;
- Improper use of agency qualifications.
Practical Considerations
Companies engaging IP service providers in China should consider:
- Verifying whether agencies are properly registered and qualified;
- Reviewing whether agencies have disciplinary records or compliance concerns;
- Avoiding agencies involved in forged signatures, false materials, or other improper practices;
- Selecting IP service providers with effective internal compliance systems.
5. Administrative Adjudication Rules for Patent Disputes Further Refined
Trend
The China National Intellectual Property Administration released the Guidelines for Handling Administrative Adjudication and Mediation of Patent Disputes (Draft for Public Comments) (《专利纠纷行政裁决和调解办案指南（征求意见稿）》), further refining procedures concerning administrative handling of patent disputes.
The draft provides guidance regarding:
- Major patent infringement disputes;
- Pharmaceutical patent disputes;
- Patent open licensing disputes;
- Relevant procedures and evidentiary requirements.
Practical Considerations
Patent owners should consider:
- Monitoring the release of the final version;
- Understanding changes regarding procedures and evidence requirements;
- Evaluating administrative adjudication as an efficient and cost-effective enforcement option.
6. Regulations on the Protection of Trade Secrets (《商业秘密保护规定》) Take Effect, Strengthening Corporate Confidentiality Management
Trend
The Regulations on the Protection of Trade Secrets officially entered into force on June 1, 2026.
The regulations further improves China’s trade secret protection framework and strengthens mechanisms for maintaining fair competition.
Practical Considerations
Companies operating in China should consider:
- Establishing tiered access-control systems for confidential information, including core data and customer information;
- Implementing access logs and audit mechanisms;
- Strengthening employee departure procedures, including access revocation, confidentiality reminders, and non-compete management;
- Maintaining trade secret inventories and confidentiality measure records.
7. Data Property Registration Accelerates, Encouraging Businesses to Develop Data Asset Strategies
Trend
On July 1, 2026, the National Data Administration officially issued the Guidelines for Data Property Registration (Trial Implementation) (《数据产权登记工作指引（试行）》).
The guideline establishes a framework for recognizing different categories of data-related rights, including:
- Data holding rights (数据持有权);
- Data usage rights (数据使用权);
- Data operation rights (数据经营权).
The guideline further provides that data property registration certificates may serve as evidence of lawful possession or control of data assets in activities such as:
- Recognition of data assets in financial statements;
- Financing and security arrangements;
- Equity investment based on data assets.
The development reflects China’s continued efforts to promote data asset recognition, circulation, and commercialization.
Practical Considerations
Companies should consider:
- Distinguishing between data property registration and data intellectual property registration;
- Reviewing existing data assets and assessing whether registration is necessary or beneficial;
- Establishing data classification and management systems to support future data confirmation and circulation;
- Preparing documentation regarding data sources, processing activities, and control rights.
8. Shanghai IP Court Clarifies AI Platform Duty of Care Standards, Requiring Stronger Copyright Compliance Mechanisms
Trend
On April 29, 2026, the Shanghai Intellectual Property Court clarified the duty of care standards applicable to AI platforms in an AI model copyright dispute.
The court adopted a framework focusing on:
- Whether the platform could foresee the possibility of infringement;
- Whether the platform had the ability to take reasonable measures to prevent infringement.
The court held that where an AI platform has fulfilled obligations including user notification, complaint handling, and timely removal of infringing content, infringement should not necessarily be established.
The court further clarified that the use of existing works during AI training constitutes reproduction only where the AI model generates content that is substantially similar to the prior work based on user instructions.
Practical Considerations
Companies developing or operating AI-related services should consider:
- Including clear copyright compliance requirements in user agreements and creator guidelines;
- Establishing effective copyright complaint and response mechanisms;
- Maintaining complete records of complaints received, review procedures, and remedial actions;
- Monitoring evolving judicial standards regarding AI-generated content and platform liability.
Recent Case
9. Jiangsu High Court Clarifies That Trademark Reputation Does Not Automatically Establish Product Decoration Protection
Trend
On May 27, 2026, the Jiangsu High People’s Court issued a second-instance judgment concerning protection of product decoration under the Anti-Unfair Competition Law.
The court clarified that:
- The reputation of a trademark cannot automatically substitute for the reputation of product decoration itself;
- Rights holders seeking protection for product decoration must separately prove that the decoration has acquired market influence and source-identifying significance.
The court further clarified four requirements for protecting product shapes or configurations as product decoration:
- The product shape or configuration has acquired certain market influence;
- The design has the function of identifying the source of goods;
- The design is not merely functional;
- Unauthorized use is likely to cause confusion among consumers.
Practical Considerations
Companies seeking protection for product decoration should consider:
- Collecting evidence specifically demonstrating the market recognition of the decoration itself;
- Highlighting distinctive product designs during marketing and promotional activities;
- Maintaining evidence regarding duration of use, sales regions, advertising investment, and consumer recognition;
- Establishing separate evidence files for product decoration protection.
