Key Takeaways from China’s Draft Amendments to the Trademark Law

A Side-by-Side Comparison of Core Provisions

Note: This article is based on the draft amendments released for public comment. There is currently no official English translation. All the translations are for reference only.

1. Prohibition of Abuse of Trademark Rights

Current LawDraft Amendment
Article 7 In the application for registration or use of a trademark, the principle of good faith shall be followed.The user of a trademark shall be responsible for the quality of the goods on which the trademark is used. The administrative departments for industry and commerce at all levels shall, through trademark administration, put an end to any practice that deceives consumers.Article 9 Applications for the registration and use of trademarks shall adhere to the principle of good faith and shall not constitute an abuse of trademark rights that harms the national interest, the public interest of society, or the lawful rights and interests of others.A trademark user shall be responsible for the quality of the goods on which the trademark is used. Trademark administration authorities at all levels, as well as departments responsible for trademark enforcement, shall, through trademark administration, prevent and curb conduct that deceives consumers.

Comments: a new principle expressly prohibits the abuse of trademark rights, reflecting recent judicial concerns over bad-faith enforcement and abusive litigation based on squatted trademarks.

2. Expanded Eligibility for Trademark Applicants

Current LawDraft Amendment
Article 17 Where a foreign national or a foreign enterprise applies for trademark registration in China, it shall be handled in accordance with an agreement concluded between the applicant’s country and the People’s Republic of China or an international treaty acceded to by both countries or according to the principle of reciprocity.Article 10 Where a foreign national, a foreign enterprise or other foreign organization applies for trademark registration in China, it shall be handled in accordance with an agreement concluded between the applicant’s country and the People’s Republic of China or an international treaty acceded to by both countries or according to the principle of reciprocity.

Comments: the draft explicitly includes “other foreign organizations” as eligible applicants, which is consistent with current practice.

3. Inclusion of Dynamic Signs

Current LawDraft Amendment
Article 8 Any sign capable of distinguishing the goods of a natural person, a legal person, or organization from those of others, including words, graphs, letters, numerals, three‑dimensional symbols, color combinations, sound or any combination thereof, may serve as a trademark for registration application.Article 14 Any sign capable of distinguishing the goods of a natural person, a legal person, or unincorporated organization from those of others, including but not limited to word, design, letter, numeral, three-dimensional symbol, combination of colors, sound, and dynamic signs, as well as a combination of the above, may serve as a trademark for registration application.

Comments: dynamic marks are now formally recognized as registrable subject matter. This reflects evolving business practices in digital and AI-driven commercial environments.

4. Consolidation of Bad Faith Filing Rules

Current LawDraft Amendment
Article 4 (1)  Any natural person, legal person, or other organization needing to acquire the right to exclusively use a trademark on the goods or services thereof in the course of business operations shall apply to the Trademark Office for trademark registration. A bad faith application for trademark registration for a purpose other than use shall not be approved for registration.Article 18 Where an application for trademark registration is filed without the intention to use the mark, and the scope of the application clearly exceeds the normal needs of production and business operations, such application shall not be approved for registration. No trademark registration application shall, in any event, be filed by means of fraud or any other improper means.
Article 44 (1)  Where a registered trademark violates Article 4, Article 10, Article 11, Article 12, or paragraph 4 of Article 19 of this Law, or its registration was acquired by fraud or any other illicit means, the Trademark Office shall declare invalidation of the registered trademark; and any other organization or individual may petition the Trademark Review and Adjudication Board to declare invalidation of the registered trademark.

Comments: articles 4 and 44 of the existing Trademark Law are consolidated under a single standard: trademarks not filed for genuine use and clearly exceeding normal business needs. While the draft preserves space for legitimate defensive filings, the precise application standards remain to be clarified in practice.

5. Cross-Class Protection for Unregistered Well-Known Marks

Current LawDraft Amendment
Article 13 (2) (3) Where a trademark for registration to be used on identical or similar goods is a copy, imitation, or translation of a well-known trademark of another party which has not been registered in China and may easily cause confusion, it shall not be registered and shall be prohibited from use.Where a trademark for registration to be used on different or dissimilar goods is a copy, imitation, or translation of a well-known trademark of another party which has been registered in China, misleads the public, and may cause damage to the interests of the registrant of the well-known trademark, it shall not be registered and shall be prohibited from use.Article 20 Where a trademark for registration to be used on identical or similar goods is a copy, imitation, or translation of a well-known trademark of another party which has not been registered in China and may easily cause confusion, it shall not be registered and shall be prohibited from use.Where a trademark for registration to be used on different or dissimilar goods is a copy, imitation, or translation of a well-known trademark of another party which has been registered in China, misleads the public, and may cause damage to the interests of the holder of the well-known trademark, it shall not be registered and shall be prohibited from use.

Comments: protection for unregistered well-known trademarks is extended to cover goods or services that are not identical or similar, marking a notable expansion.

6. Shortened Opposition Period

Current LawDraft Amendment
Article 36 Where, upon expiry of the statutory time limit, the party concerned fails to apply for a review of a decision of the Trademark Office to reject a trademark registration application or deny registration or fails to institute an action in a people’s court against a decision of the Trademark Review and Adjudication Board upon review, the decision to reject a trademark registration application or deny registration or the decision upon review shall take effect.Where trademark registration is approved after all oppositions are determined as unfounded upon examination, the time of the applicant obtaining the right to exclusively use the trademark commences from the date of expiry of the three-month preliminary approval publication period. The right to exclusively use the trademark is not retrospective to another party’s use of a mark identical with or similar to the trademark on identical or similar goods during the period from the date of expiry of the publication period to the date of decision to approve registration; however, such other party shall compensate the trademark registrant for any losses caused by its use in bad faith.Article 38 Where, upon expiry of the statutory time limit, the party concerned fails to apply for a review of a decision of the Trademark Administration Authority of the State Council to reject a trademark registration application or deny registration or fails to institute an action in a people’s court against a decision of the Trademark Review and Adjudication Board upon review, the decision to reject a trademark registration application or deny registration or the decision upon review shall take effect.Where trademark registration is approved after all oppositions are determined as unfounded upon examination, the time of the applicant obtaining the right to exclusively use the trademark commences from the date of expiry of the two-month preliminary approval publication period. The right to exclusively use the trademark is not retrospective to another party’s use of a mark identical with or similar to the trademark on identical or similar goods during the period from the date of expiry of the publication period to the date of decision to approve registration; however, such other party shall compensate the trademark registrant for any losses caused by its use in bad faith.

Comments: the opposition period is proposed to be shortened from three months to two months.

7. Removal of “Change of Circumstances” at Court Stage

Current LawDraft Amendment
Article 35(4) Where, in a review conducted according to the preceding paragraph, the Trademark Review and Adjudication Board must determine the involved prior rights based on the results of another case being tried by a people’s court or handled by an administrative agency, it may suspend the review. After the cause of suspension is eliminated, the review process shall be resumed.Article 40 During the examination and adjudication of trademark opposition proceedings, review of rejection decisions, review of decisions denying registration, or invalidation proceedings conducted by the Trademark Administration Authority of the State Council, where the determination of prior rights involved must be based on the outcome of another case currently being tried by a People’s Court or handled by an administrative authority, examination or adjudication shall, as a general rule, be suspended. Upon elimination of the cause for suspension, examination or adjudication shall be promptly resumed.Where a People’s Court adjudicates a review decision rejecting an application, a review decision denying registration, or an invalidation ruling rendered by the trademark administration authority of the State Council pursuant to Article 19 of this Law, the facts shall be determined as of the time the challenged decision or ruling was made.
Article 45(3) Where, in reviewing a petition for declaration of invalidation of a registered trademark under the preceding paragraph, the Trademark Review and Adjudication Board must determine the involved prior rights based on the results of another case being tried by a people’s court or handled by an administrative agency, it may suspend the review process. After the cause of suspension is eliminated, the review process shall be resumed.

Comments: when courts review refusals, non-registration, or invalidation cases, they will base their decision on the status at the time the administrative (NIPA) decision was made. Later changes in circumstances will no longer affect the review.

8. Administrative Penalties for Bad-Faith Applications

Current LawDraft Amendment
Article 68(4) A trademark agency which, in violation of the principle of good faith, infringes upon the lawful rights and interests of clients shall bear civil liability in accordance with the law, and the trademark agency association shall, according to its bylaws, take disciplinary actions against it.Article 53 Where a trademark applicant engages in any of the following bad-faith trademark registration applications and causes adverse social impact, the department responsible for trademark enforcement shall issue a warning and may impose a fine of up to RMB 100,000:(1) knowingly applying for trademark registration of a sign in violation of Article 15 of this Law;(2) applying for trademark registration in violation of Article 18 of this Law;(3) intentionally applying for trademark registration in violation of Articles 20, 21, or 23 of this Law.

Comments: a new administrative enforcement mechanism targets bad-faith trademark filings, strengthening deterrence at the filing stage.

9. Contractual Termination Rights for Licensees’ Quality Failures

Current LawDraft Amendment
Article 43 A trademark registrant may, by entering into a trademark licensing contract, license another party to use its registered trademark. The licensor shall supervise the quality of the goods on which the licensee uses the licensor’s registered trademark. The licensee shall guarantee the quality of the goods on which the registered trademark is used.In the licensed use of another party’s registered trademark, the name of licensee and the origin of goods must be indicated on the goods on which the registered trademark is used.Where another party is licensed to use a registered trademark, the licensor shall report the license to the Trademark Office for recordation, and the Trademark Office shall publish it. An unrecorded license may not be used as a defense against a third party in good faith.Article 55 A trademark registrant may use its registered trademark itself or license others to use the registered trademark by entering into a trademark license agreement. The licensor shall supervise the quality of the goods bearing the licensed trademark. The licensee shall ensure the quality of the goods bearing the registered trademark. Where the licensee fails to fulfill its quality assurance obligations, the licensor shall have the right to terminate the trademark license agreement.In the licensed use of another party’s registered trademark, the name of licensee and the origin of goods must be indicated on the goods on which the registered trademark is used.Where another party is licensed to use a registered trademark, the licensor shall report the license to the Trademark Administration Authority of the State Council for recordation, and the Trademark Administration Authority of the State Council shall publish it. An unrecorded license may not be used as a defense against a third party in good faith.

Comments: where a licensee fails to meet quality obligations, the licensor may terminate the license agreement.

10. Administrative Measures Against Misleading Use

Current LawDraft Amendment
Article 49 Where, in using a registered trademark, the trademark registrant changes the registered trademark, the name or address of the registrant, or any other registered matter without approval, the local administrative department for industry and commerce shall order the registrant to make correction within a prescribed time limit; and if the registrant fails to do so within the time limit, the Trademark Office shall cancel the registered trademark.Where a registered trademark becomes a common name of goods on which it is approved to be used or the use of the registered trademark has ceased for three consecutive years without good reasons, any entity or individual may apply to the Trademark Office for cancellation of the registered trademark. The Trademark Office shall make a decision within nine months after receiving the application. Under special circumstances, the time limit may be extended by three month with the approval of the administrative department for industry and commerce under the State Council.Article 56 Where, in using a registered trademark, the trademark registrant changes the registered trademark, the name or address of the registrant, or any other registered matter without approval, or uses the registered trademark in a manner that misleads the public, the department responsible for trademark enforcement shall order the registrant to make correction within a prescribed time limit; and if the registrant fails to do so within the time limit. Failure to rectify within such time limit may result in a fine of up to RMB 50,000; where the circumstances are serious, the Trademark Administration Authority of the State Council shall revoke the registered trademark.Where a registered trademark becomes a common name of goods on which it is approved to be used or the use of the registered trademark has ceased for three consecutive years without good reasons, any entity or individual may apply to the Trademark Administration Authority of the State Council for cancellation of the registered trademark. The Trademark Administration Authority of the State Council shall make a decision within nine months after receiving the application. Under special circumstances, an extension of up to three months may be approved by the responsible official.Where a registered trademark falls under the circumstances described in the preceding paragraph, the Trademark Administration Authority of the State Council may revoke the registered trademark.

Comments: the draft introduces administrative measures for misleading use of registered trademarks, including corrective orders and fines; serious cases may result in revocation of the mark.

11. Enhanced Relief for Well-Known Marks

Current LawDraft Amendment
Article 13 (1) The holder of a trademark well known by the relevant public may file a request for well-known trademark protection under this Law if believing that there is any infringement upon its rights.Article 62 The holder of a trademark well known by the relevant public may file a request for well-known trademark protection under this Law if believing that there is any infringement upon its rights.In the course of trademark registration examination and adjudication, investigation and handling of trademark violations, or investigation and handling of unfair competition cases, where a party lawfully asserts its rights, the Trademark Administration Authority of the State Council may, as necessary for case disposition, determine the well-known status of a trademark.In the course of adjudicating trademark civil or administrative cases or unfair competition cases, where a party lawfully asserts its rights, a People’s Court designated by the Supreme People’s Court may, as necessary for case adjudication, determine the well-known status of a trademark.Whether a trademark is a well-known trademark shall be determined upon request of a party as a fact to be found in the handling of a trademark case. The following factors shall be taken into account in the determination of a well-known trademark:Reputation of the trademark to the relevant public;Duration, extent, and geographical area of use of the trademark;(3) Duration, extent, and geographical area of any publicity of the trademark;(4) Records of protection of the trademark, particularly records of protection as a well-known trademark;(5) Other factors relevant to the determination of a well-known trademark.
Article 14(1-4) Whether a trademark is a well-known trademark shall be determined upon request of a party as a fact to be found in the handling of a trademark case. The following factors shall be taken into account in the determination of a well-known trademark:(1) Reputation of the trademark to the relevant public;(2) Duration of the use of the trademark;(3) Duration, extent, and geographical area of any publicity of the trademark;(4) Records of protection of the trademark as a well-known trademark;(5) Other factors relevant to the determination of a well-known trademark.Where a party files a claim under Article 13 of this Law in the process of trademark registration examination or in the process of investigation of a trademark violation case by the administrative department for industry and commerce, the Trademark Office may determine whether the trademark is a well-known trademark if it is necessary for examination or handling the case.Where a party files a claim under Article 13 of this Law in the process of resolution of a trademark dispute, the Trademark Review and Adjudication Board may determine whether the trademark is a well-known trademark if it is necessary for handling the case.Where a party files a claim under Article 13 of this Law in the trial of a civil or administrative case involving trademark, the people’s court designated by the Supreme People’s Court may determine whether the trademark is a well-known trademark if it is necessary for trying the case.

Comments: the draft clarifies that recognition of well-known marks may be asserted in unfair competition cases, expanding remedies and coordinating with provisions under the Anti-Unfair Competition Law.

12. Clarification of Indicative (Nominative) Use

Current LawDraft Amendment
Article 59 The holder of the right to exclusively use a registered trademark shall have no right to preclude others from legitimately using the common name, design or model of goods on which the trademark is used, the direct indications of the quality, main raw materials, functions, uses, weight, quantity, and other features of goods, or the place name in the trademark.Where a three dimensional registered trademark comprises a shape resulting from the nature of the goods, a shape of the goods necessary for achieving a technical effect, or a shape to add substantive value to the goods, the holder of the right to exclusively use the registered trademark shall have no right to preclude others from legitimately using such a shape.Where, before a trademark registrant applies for trademark registration, another party has used an identical or similar trademark with a certain reputation on identical or similar goods prior to the trademark registrant, the holder of the right to exclusively use the registered trademark shall have no right to preclude such other party from continuing to use the trademark for original purposes, but may require such other party to add a distinctive mark.Article 70 The holder of the right to exclusively use a registered trademark shall have no right to preclude others from legitimately using the common name, design or model of goods on which the trademark is used, the direct indications of the variety, nature, quality, main raw materials, functions, uses, weight, quantity, value, geographical origin, and other features of goods, or the place name in the trademark.Where registered trademarks consisting of three-dimensional signs, color combinations, sounds, dynamic signs, or the like contain shapes, color combinations, sounds, or dynamic effects that are dictated by the nature of the goods themselves, are necessary to achieve a technical result, or give the goods substantial value, the trademark registrant shall have no right to prohibit others from making legitimate use thereof.Where a registered trademark is used solely to indicate the purpose, intended users, application scenarios, or other descriptive information of the goods provided, or to indicate the true source thereof, the trademark registrant shall have no right to prohibit others from making legitimate use thereof, except where such use is likely to cause confusion.Where, before a trademark registrant applies for trademark registration, another party has used an identical or similar trademark with a certain reputation on identical or similar goods prior to the trademark registrant, the holder of the right to exclusively use the registered trademark shall have no right to preclude such other party from continuing to use the trademark for original purposes, but may require such other party to add a distinctive mark.

Comments: new provisions specify the scope of indicative or nominative use, further delineating the boundary between trademark rights and reasonable use.

13. Flexibility in Calculating Damages

Current LawDraft Amendment
Article 63 The amount of damages for infringement upon the right to exclusively use a registered trademark shall be determined according to the actual losses suffered by the right holder from the infringement; where it is difficult to determine the amount of actual losses, the amount of damages may be determined according to the benefits acquired by the infringer from the infringement; where it is difficult to determine the right holder’s losses or the benefits acquired by the infringer, the amount of damages may be a reasonable multiple of the royalties. If the infringement is committed in bad faith with serious circumstances, the amount of damages shall be the amount, but not more than five times the amount, determined in the aforesaid method. The amount of damages shall include reasonable expenses of the right holder for stopping the infringement.Where the right holder has made its best efforts to adduce evidence but the account books and materials related to infringement are mainly in the possession of the infringer, in order to determine the amount of damages, a people’s court may order the infringer to provide such account books and materials; and if the infringer refuses to provide the same or provide any false ones, the people’s court may determine the amount of damages by reference to the claims of and the evidence provided by the right holder.Where it is difficult to determine the actual losses suffered by the right holder from the infringement, the profits acquired by the infringer from the infringement, or the royalties of the registered trademark, a people’s court may award damages of not more than five million yuan according to the circumstances of the infringement.The people’s court that tries a trademark dispute case shall, at the request of the right holder, order destruction of goods on which a registered trademark is falsely used, except under special circumstances; order destruction of materials and tools primarily used for the manufacture of such goods without compensation; or under special circumstances, order prohibition of the said materials and tools from entering commercial channels without compensation.Goods on which a registered trademark is falsely used may not enter commercial channels even if the registered trademark so used is removed only.Article 74 The amount of damages for infringement upon the right to exclusively use a registered trademark shall be determined according to the actual losses suffered by the right holder from the infringement or the benefits acquired by the infringer from the infringement; where it is difficult to determine the right holder’s losses or the benefits acquired by the infringer, the amount of damages may be a reasonable multiple of the royalties. Where infringement of the exclusive right to use a registered trademark is intentional and the circumstances are serious, damages may be determined at between one and five times the amount determined under the foregoing methods.Where the right holder has made its best efforts to adduce evidence but the account books and materials related to infringement are mainly in the possession of the infringer, in order to determine the amount of damages, a people’s court may order the infringer to provide such account books and materials; and if the infringer refuses to provide the same or provide any false ones, the people’s court may determine the amount of damages by reference to the claims of and the evidence provided by the right holder.Where it is difficult to determine the actual losses suffered by the right holder from the infringement, the profits acquired by the infringer from the infringement, or the royalties of the registered trademark, a people’s court may award damages of not more than five million yuan according to the circumstances of the infringement.The amount of damages shall include reasonable expenses of the right holder for stopping the infringement.The people’s court that tries a trademark dispute case shall, at the request of the right holder, order destruction of goods on which a registered trademark is falsely used, except under special circumstances; order destruction of materials and tools primarily used for the manufacture of such goods without compensation; or under special circumstances, order prohibition of the said materials and tools from entering commercial channels without compensation.Goods on which a registered trademark is falsely used may not enter commercial channels even if the registered trademark so used is removed only.

Comments: rights holders may choose to calculate damages based on either their actual losses or the infringer’s gains.

14. Clarification of the “Three-Year Non-Compensation” Rule

Current LawDraft Amendment
Article 64 Where the owner of the exclusive right to use a registered trademark claims damages, and the alleged infringer argues that the right holder has never used the registered trademark, a people’s court may require the owner of the exclusive right to use a registered trademark to provide evidence of its actual use of the registered trademark in the last three years. If the owner of the exclusive right to use a registered trademark is neither able to prove its actual use of the registered trademark in the last three years nor able to prove that it has suffered other losses from the infringement, the alleged infringer shall not be liable for damages.Where any goods infringing a right to exclusively use a registered trademark are sold without knowledge of such infringement, and the seller is able to prove that the goods are legally acquired and provide the supplier, the seller shall not be liable for damages.Article 75 Where the owner of the exclusive right to use a registered trademark claims damages, and the alleged infringer argues that the right holder has never used the registered trademark, a people’s court may require the trademark owner to provide evidence of actual use of the registered trademark during the three years preceding the filing of the action. If the owner of the exclusive right to use a registered trademark is neither able to prove its actual use of the registered trademark in the last three years nor able to prove that it has suffered other losses from the infringement, the alleged infringer shall not be liable for damages.Where any goods infringing a right to exclusively use a registered trademark are sold without knowledge of such infringement, and the seller is able to prove that the goods are legally acquired and provide the supplier, the seller shall not be liable for damages.

Comments: the three-year non-compensation period is calculated from the date prior to filing the lawsuit, enhancing predictability.

15. Civil Liability for Malicious Trademark Litigation

Current LawDraft Amendment
Article 68 A trademark agency which, in violation of the principle of good faith, infringes upon the lawful rights and interests of clients shall assume civil responsibility in accordance with the law, and the trademark agency association shall, according to its bylaws, take disciplinary actions against it.Article 78 Where a trademark lawsuit is maliciously initiated, the People’s Court shall impose sanctions in accordance with law. Where losses are caused to the opposing party, civil liability shall be borne in accordance with law.

Comments: The draft expressly introduces civil liability for malicious trademark litigation, reinforcing judicial tools against abusive enforcement practices.

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