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This article was first published on the IPHQ News website, 24 October 2025.
China's National Intellectual Property Administration (CNIPA) has proposed a new law aimed at strengthening trademark protection. From the perspective of foreign businesses and startups, however, the amendments are a mixed bag.
"The new draft trademark law offers both opportunities and challenges," says Amy Chan, the Trade Mark Practice Group Leader at Spruson & Ferguson Asia, a member of the IPH network. "On the one hand, it promises stronger protection, a more predictable legal framework and a fairer competitive environment; on the other hand, it imposes stricter obligations, more demanding diligence, and higher compliance costs."
The draft law takes aim at the widespread use of "registered but not used" marks, which have been difficult to eliminate in China. It introduces a systemic shift from a registration-focused approach to a more use-oriented one that features application on demand, appropriate ownership, and clearance of idle trademarks from the registry-bringing China closer to international norms.
Key highlights
- Prohibits filing large numbers of marks without intent to use, hoarding registration, copying well-known marks, or infringing prior rights
- Grants the right to damages for parties harmed by malicious trademark applications
- Provides legitimate rights holders with a mandatory transfer mechanism as an alternative to merely seeking the invalidation of maliciously registered marks
- Requires a declaration of use if the mark is not in use at filing, and an explanation of the mark's use or justifications of non-use within 12 months following every five years after registration
- Shortens the opposition period from three months to two
- Eliminates the review of opposition procedure under CNIPA, mandating trademark applicants to file direct appeals to the People's Courts in relevant opposition cases
"To navigate the new regime effectively, registered trademark owners must proactively maintain evidence of use, monitor third-party filings, and act swiftly against infringements," Chan states.
By way of example, foreign companies will have to collect compelling indicators of use, such as purchase orders, invoices, bills of lading, and customs documentation. They must also file post-registration declarations and adjust to the shortened opposition period by checking the register and responding quickly to conflicting applications. These and other changes will increase costs, especially for large portfolio holders and those required to attend direct court appeals instead of CNIPA review of opposition.
"So, while these requirements increase expenses and administrative burdens, they also contribute to a cleaner and more predictable IP environment," Chan states. "Over time, foreign businesses are expected to benefit from reduced squatting, clearer use requirements, and improved enforcement, making it easier to secure and defend legitimate rights in China."
Overall, the proposed amendments reflect China's commitment to cracking down on malicious squatting, significantly improving conditions for legitimate foreign brand owners. The mandatory transfer mechanism, for example, ensures a more efficient path to reclaim recoveries by rightful owners who previously endured lengthy and costly invalidation applications.
Chan expects further refinements before final enactment "to address stakeholder concerns", including:
- Clearer definitions of key terms like "malice", "large numbers" and "reasonable reason"
- Adjustments to the five-year use declaration and more detailed rules on related evidence and procedures "to ensure consistent enforcement"
- Clearer rules for application, valuation and dispute resolution processes under the mandatory transfer mechanism "to address fairness concerns", and
- Exceptions to repetitive filing restrictions "to balance protection against abuse with legitimate business needs".
The draft of the new law has been released for public consultation, which will likely lead to revisions. CNIPA has sent its revised proposal to the State Council. The State Council, following coordination with the Ministry of Justice, will forward it to the Standing Committee of the National People's Congress (NPCSC) for deliberation. "As with all amendments, the draft will normally undergo three rounds of review by the NPCSC," Chan states. "On adoption, it will be promulgated by China's president."
CNIPA has not set a formal timeline but is on record as planning to advance the process this year. "Based on legislative practice, the process can take several months to over a year, depending on the draft's complexity and the degree of consensus reached during deliberations," Chan states. "That said, given the government's will to strengthen intellectual property protection and improve the business environment, the process could be accelerated".
Original article written by Julius Melnitzer with contributions from Amy Chan, Vicky He and Chan Wei Li.
Republished with permission.
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