China advances tougher trademark protections targeting misleading practices

China is moving to strengthen trademark rules through a draft revision to the Trademark Law aimed at tackling misleading practices, bad-faith registrations and trademark hoarding.

According to China Daily, the draft revision is scheduled for further review by the Standing Committee of the National People’s Congress. The proposed changes would introduce stricter standards and procedures for trademark registration and use.

The draft would allow authorities to reject trademark applications filed without an intention to use the mark or beyond normal business needs. Violations that cause adverse effects could lead to warnings and fines of up to 100,000 yuan.

The proposal also targets deceptive trademarks that may mislead the public about a product’s quality or place of origin. If a registered trademark is used misleadingly, authorities could order corrective action, impose fines and revoke the trademark if violations are not corrected.

The draft would also strengthen oversight of trademark agencies and regulate trademark use in cyberspace. It includes measures to better protect the rights and interests of Chinese companies expanding overseas.

China is also developing a unified trademark registration and application platform to make trademark searches and related services easier for the public.

Why does it matter?

The draft revision reflects China’s effort to adapt trademark enforcement to online commerce and more complex brand practices. Stricter rules against deceptive trademarks, hoarding and bad-faith registrations could improve consumer trust and give businesses clearer protection in both domestic and cross-border markets. The cyberspace provisions are particularly relevant as trademark misuse increasingly occurs through online platforms, digital marketplaces and information networks.

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