China’s proposed trademark reforms target misuse

The Standing Committee of the National People’s Congress has begun the second deliberation of a draft amendment to China’s Trademark Law, introducing rigorous measures to tackle deceptive branding and enhance consumer rights.

Proposed revisions aim to curb the use of ‘tricky trademarks’ – brands crafted to mimic product ingredients or manufacturing processes, which regulators argue mislead shoppers and destabilise the trademark administration system, Xinhua reports. Under the new proposals, companies caught using registered trademarks to deceive the public could face substantial fines. Penalties may reach up to five times the illegal business turnover, provided the amount exceeds 50,000 yuan (approximately US$7,342); fines of up to 250,000 yuan are proposed for cases falling below that threshold.

The draft also addresses malpractice within the trademark agency sector, including the hoarding of trademarks for resale and malicious registrations. To improve oversight, agencies and practitioners will be required to register their details with the State Council’s trademark administration department. Guan Yuying, a researcher at the Institute of Law of the Chinese Academy of Social Sciences, noted that the revision signals stronger regulation in a market previously hindered by uneven practitioner quality and poor self-regulation.

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Recognising the shift towards a digital economy, the amendment explicitly brings trademark usage on the internet and other information networks within the scope of China’s trademark law. Experts have welcomed the move as a timely response to the increasing influence of online platforms, social media, and virtual environments – such as the metaverse – on consumer decision-making.

Registration tightened for China’s trademarks law

The draft also tightens entry requirements for trademark registration, clarifying that national park emblems, Olympic symbols, and other special signs will be governed by China’s trademark law and related regulations. Furthermore, it seeks to safeguard the overseas rights of Chinese companies by penalising fraudulent or improper handling of international trademark registrations. According to Guan, regulating this form of ‘overseas squatting’ is essential to protecting Chinese enterprises’ interests and fostering a balanced domestic and international business environment.

Official figures highlight the scale of the market, with over 4.2 million trademarks registered on the Chinese mainland last year, bringing the total number of effective registrations to more than 49.87 million by 2025.