Trademark Registration in China- Know the Full Information

A trademark is a unique symbol or word(s) used to represent a business or its products. A trademark exclusively identifies a product as belonging to a specific company and recognizes the company’s ownership of the brand. Trademarks are generally considered a form of intellectual property. Thus, trademark registration in China is the most important part for the foreign businesses.

China was never an easy country for doing business. The Covid-19 situation, dwindling trade relationship between the US and China, and the global economic uncertainty will add to the difficulty of doing business over here. Foreign businesses need to be proactive in taking all the possible measures to safeguard their business interest while operating in China. Registering trademark in China should be the first priority for them.

 

Keep these points in mind while registering trademark in China

  • No trademarking of common or generic terms
  • Use distinctive names
  • Conduct a trademark search
  • Register Chinese name of the trademark
  • Quickly register your trademark with the China customs

 

The Chinese trademark law system is different from the U.S. federal trademark law system. In China you must register your trademark with the Chinese Trademark Office in order to protect your exclusive rights to that trademark in China.. The Chinese Trademark Law provides: “Any natural person, legal entity or other organization intending to acquire the exclusive right to use a trademark, including service mark, shall file an application for the registration of the trademark with the Trademark Office”.

Applying for a trademark is a crucial and an important step that’s often ignored or overlooked by exporters. China is a “first-to-file” country which means that the person who registers a trademark for a product, will also have all exclusive rights to distribute and sell the product. In China, the protection of the exclusive right to use a trademark is based on registration. Registration can be obtained either by filing an application directly at the CTMO (Domestic application), or by filing an application at the World Intellectual Property Organization (WIPO) on the basis of a trademark registered or applied in another country than China.

 

What rights does trademark registration provide?

A trademark not only gives the trademark owner the exclusive right to use the mark but also allows the owner to prevent others from using a similar mark that can be confusing for the general public. A trademarked name marks all of your products and services as yours and no one else’s and can also protect you from counterfeit products. In principle, a trademark registration in China will confer an exclusive right to the use of the registered trademark. This implies that the trademark can be exclusively used by its owner or licensed to another party for use in return for payment. Registration provides legal certainty and reinforces the position of the right holder, for example, in case of litigation.

China trademark registration provides value beyond your core business. Trademarks can appreciate in value over time. The more your business reputation grows, the more valuable your brand will be. Trademarks in China are valid for 10 years from the date of registration. Requests to renew must be filed within 6 months prior dates of expiration.

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Fight for Red Sole Trademark Registration in China by Christian Louboutin

Since Christian Louboutin first installation shop in France in the early 1990’s, the man and his emblem have determined enthusiasts in sky-high stiletto-wearers and designer sneakers, alike, appeared on nearly every principal purple carpet across the globe, and generated call for that see them promote greater than 1 million pairs of its pricey, purple-soled footwear according to year. In furtherance of its quest for worldwide domination, the famed shoes emblem has been preventing to sign up its purple sole in China, a decade-long circulate that (if successful) will enable it to claim exclusive trademark rights in the only, and save you others from promoting footwear with a similar sole.

In furtherance of its try to amass trademark rights (and registrations) in its famous red shoe sole, including in the U.S. (as we saw play out inside the Louboutin v. YSL case), Mexico, Denmark, Indonesia, Switzerland, India, and Singapore, amongst different countries, Louboutin set its attractions on China in the spring of 2010. At the coronary heart of its quest for exclusive rights? The argument that when purchasers see a pink soled shoe, they hyperlink that shoe to a unmarried source.

Filing a territorial extension in connection with a United Kingdom trademark utility for “the colour crimson (Pantone No. 18.1663TP) implemented to the sole of a shoe,” Louboutin sought registration with the China Trademark Office (“CTO”).

It became now not be long before the CTO driven back, and refused to register the mark on the premise that it consists now not just of the placement of a purple sole on a excessive heel shoe, as Louboutin claimed, but of the layout of a excessive heel shoe, itself, with a red sole. Such a mark, the CTO held, “lacks specialty,” that means that it does now not, on its own, serve to identify the Louboutin brand to purchasers. As such, the mark became not eligible for registration.

Following unsuccessful appeals earlier than China’s Trademark Review and Adjudication Board (“TRAB”), and the Beijing Intellectual Property Court, each of which discovered that Louboutin’s “three-D trademark” for a “high-heeled shoe with the only coloured in pink” was ineligible for registration as a trademark, Louboutin took its case to the Beijing High Court.

Unlike the lower court docket and trademark bodies, the Beijing High Court sided with Louboutin. In a choice in December 2018, the court docket determined that the trademark at difficulty here is not a 3-d mark that includes the design of a shoe. It is, instead, a unmarried colour and its placement on the lowest of a shoe, not the shoe as a whole.

According to the court docket’s decision, this particular arrangement “isn’t always excluded via the law from being registered as a trademark,” so long as the consuming public has come to accomplice the red shoe sole with a single source, something that Louboutin can establish by showing that it has been the use of the mark on goods in China for a while, that it has marketed its mark there, and customers have, in fact, come to associated the purple sole with a unmarried source.

The matter turned into sent back to the TRAB for addition determinations, but inside the process, Louboutin hit a snag when the trademark body in the long run sought a rehearing via the Supreme People’s Court, putting forward that China’s trademark regulation does no longer offer for protection for “a unmarried shade unique to be applied at a sure position,” or even if it did, Louboutin has didn’t establish through manner of the proof it submitted that its purple sole has obtained the requisite specialty to revel in trademark safety in China.

But no longer all is misplaced for a Louboutin. In fact, in a recent decision, the Supreme People’s Court upheld the Beijing High Court’s finding, confirming that “a single color distinctive to be carried out at a positive position” is, in fact, a registerable kind of trademark, marking a first-rate victory for Louboutin, according to Zhu Zhigang, a trademark legal professional at Beijing-based totally Marques.

Still up for determination earlier than the TRAB: whether Louboutin has sufficiently established that the crimson sole mark has collected the needful level of secondary that means on the way to perform as a trademark. In other words, Louboutin has to show – thru evidence of its duration of use of the mark, exclusivity within the market, third-birthday celebration media attention, sales success, etc. – that clients have come to link its use of color to a unmarried source.

Zhigang says that the selection from the Supreme People’s Court, which follows from a decade-long again-and-forth over the purple sole mark, “could help pave the way for the registration of its signature purple sole alternate mark in China,” but it is still no longer in all likelihood to be an open-and-close case even at this point. He says that “it could logically be anticipated that the TRAB will keep its position” that Louboutin’s crimson sole has no longer obtained the vital distinctiveness, in which case, the matter will go returned before the courts for a final determination.

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