A new path for brand protection in China

With the country’s latest trademark law revision coming into force this year, Hu Gang of China Patent Agent (HK) explains the direction of the amendment and what it will mean in practice.

In December 2025, the Draft Amendment to the Trademark Law of the People’s Republic of China was officially published and open for public consultation. It is anticipated that the revised draft will be passed and implemented in 2026.

After streamlining and consolidation, the revised draft comprises 84 articles, of which 11 are new.

The core objectives of this amendment are to strengthen trademark protection, optimise the trademark management system, and curb malicious trademark registration.

Additionally, the draft expands the types of objects eligible for trademark registration and contains amendments that address practical needs in the field, such as regulating trademark usage; strengthening the protection of well-known trademarks; prohibiting the abuse of trademark rights; and improving the supervision of the trademark agency industry.

This article interprets the core changes that have a significant impact on trademark practice, clarifying the direction of the amendment and the key points for practical response.

Tackling malicious applications

Article 18 of the revised draft stipulates: “Trademark applications that are not intended for use and clearly exceed normal production and operation needs shall not be registered.”

This provision has been incorporated into the newly added Chapter 2, ‘Conditions for Trademark Registration’. This adjustment constitutes a key change—it shifts the burden of proof from rights holders in subsequent invalidation procedures to the Trademark Office, which will proactively review the matter during the registration examination stage.

This institutional design will further curb the behaviour of trademark squatters who hoard trademarks and occupy public trademark resources.

Meanwhile, Article 53 of the revised draft imposes administrative penalties for malicious applications, with a maximum fine of RMB 100,000 ($14,500). This amount exceeds the resale profits that most malicious registrants earn from selling trademarks to genuine rights holders in practice, rendering most malicious registration activities high risk and low return.

It should be noted that the revised draft clearly defines “malicious” filings as those that “significantly exceed normal production and operation needs”.

Based on this wording, the compliance threshold for enterprises engaging in defensive trademark applications has been raised.

Enterprises must therefore align trademark application strategies with their business expansion plans, strictly following compliance requirements when applying for batches of trademarks, and ensuring that such filings correspond to their actual production and operation needs.

Regulating ‘scheming trademarks’

Article 56, Paragraph 1 of the revised draft introduces administrative regulatory measures against “using registered trademarks in a way that misleads the public”.

For the first time, it designates “misleading trademark usage” as a direct regulatory target at the trademark law level and establishes a three-tier punishment system, including correction within a time limit, fines, and revocation of registered trademarks in severe cases.

This amendment is an institutional response to the issue of “scheming trademarks”, addressing misconduct in trademark usage. In practice, such trademarks are not inherently deceptive by law.

Instead, rights holders exploit the interaction between trademarks and their usage scenarios, utilising the structural characteristics of Chinese to disassemble trademark words, or through exaggerated descriptions, vague labelling, and other means, to transform trademarks into textual traps that mislead consumers.

The amendment to the law establishes rules for the compliant use of trademarks, not only highlighting the compliance requirements for trademark use but urging trademark owners to exercise their rights in a standardised manner, effectively safeguarding consumers’ right to know, maintaining fair market trading order, and preserving a healthy market competition ecosystem.

Usage obligations clarified

Article 56, Paragraph 3 of the revised draft stipulates: “If a registered trademark becomes the generic name of the goods approved for its use or is not used for three consecutive years without legitimate reasons, the trademark administration department of the State Council may revoke the registered trademark.”

This amendment further clarifies the obligation to use a trademark after registration, addressing the persistent issue of ‘zombie trademarks’. So-called zombie trademarks refer to marks that are in a valid registration status but have not been used for a long time, and the original registrant has died or cannot be reached, resulting in the rights being suspended.

By the end of 2025, the total number of valid registered trademarks in Mainland China (excluding Hong Kong, Macao, and Taiwan) reached 49.877 million. Some industry analysts point out that the proportion of zombie marks may be as high as 30%, with a large amount of trademark resources being left idle and wasted.

This amendment strengthens the obligation to use registered trademarks, effectively preventing the idling of trademark public resources, revitalising existing trademark resources, and releasing more space for market entities in brand naming and trademark applications.

At the same time, it grants administrative authorities the right to proactively revoke zombie trademarks, promoting a shift from static registration to dynamic supervision in trademark management and enhancing its efficiency and effectiveness.

Specific operational details—such as the applicable circumstances, trademark scope, and timing for the Trademark Office to initiate revocation—still need to be clarified in subsequent regulations and gradually improved in practice.

Adapting to the digital economy

In the context of the rapid development of the digital economy and artificial intelligence (AI), profound changes have taken place in the use and dissemination of commercial logos.

In application scenarios such as online platforms and smart devices, trademarks are often presented in the form of dynamic logos such as continuous images, representing a new form of trademark use.

Article 14 of the revised draft explicitly adds dynamic trademarks as a constituent element of registrable trademarks, which is an institutionalised response to this market trend that better adapts to the diversified needs of brand presentation in the digital economy era and improves protection for non-traditional marks.

Looking back at the protection process of non-traditional trademarks in China, the 2001 version of the trademark law included three-dimensional trademarks and colour combinations in the scope of registrable trademarks, and the 2013 version of the trademark law added the registration protection of sound trademarks, both of which led to a surge in applications for related trademarks after the implementation of the new laws.

The inclusion of dynamic trademarks also provides a new path for brand protection; applicants with a need for such marks can start contacting trademark agencies to prepare.

It should be noted that, apart from dynamic trademarks, nontraditional trademark types such as scent trademarks, location trademarks, holograms, and trade dress, which have been widely discussed previously, have not been included in the protection scope of this revised draft.

This also sets the stage for further revisions and improvements of China’s trademark law in the future.

Protecting well-known marks

Article 20 introduces a new provision prohibiting the dilution of unregistered well-known trademarks on non-similar goods.

This adjustment elevates the protection of unregistered well-known trademarks to a level comparable to that of registered well-known trademarks.

This means that in the future, China’s protection scope for well-known trademarks will no longer be determined based on the registration status of the trademark, but solely on the scope covered by its reputation, truly returning to the essential attributes of well-known trademark protection and achieving comprehensive protection for such marks.

The introduction of this regulation effectively curbs the speculative behaviour of “crossfield free-riding” in the trademark sector. In the past, cybersquatters have used the unregistered well-known trademarks of others as business names or domain names.

Such behaviour did not directly use well-known marks as trademarks, and was neither identical nor similar to the main business of the well-known trademark owner, thus not constituting trademark infringement in the traditional sense.

However, this activity could leverage the popularity of the wellknown trademark to attract traffic and gain improper benefits. This revision fills this protection gap.

Meanwhile, this amendment can better adapt to the development needs of the new economic environment of the internet. In response to the reality of explosive growth in trademark recognition in fields such as AI, it provides more timely and adequate legal protection for well-known trademarks, which has strong practical value.

Furthermore, the revised content aligns with the requirements for well-known trademark protection stipulated in Article 18.22, paragraph 2 of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), completing institutional preparations for China’s subsequent accession to the CPTPP in the field of well-known trademark protection and promoting the alignment of China’s trademark protection rules with international treaties.

Enhance trademark examination efficiency

Article 35 of the revised draft shortens the trademark opposition period from the current three months to two months, and clarifies that no extension can be applied for during the opposition period.

This adjustment is based on the widespread automation of trademark monitoring technology, which enables stakeholders to timely and accurately detect similar trademarks through technical means, thus exercising their right to oppose without requiring an excessively long trademark announcement period.

The direct effect of this amendment is to shorten the trademark application cycle, accelerate the authorisation process, and enhance the overall efficiency of trademark examination.

From an international comparison perspective, the current trademark opposition period in the EU is three months, while in the US, it is 30 days but can be extended up to 180 days upon payment. In India, the period is four months and multiple extensions are allowed. The revised trademark opposition period in China is significantly shorter than that of most countries and regions.

This change also poses higher requirements for the practical operation of opposition cases. Opposition applicants need to complete the collection, organisation, and submission of evidence within a shorter timeframe, ensuring the timeliness, completeness, and professionalism of the evidence.

It is recommended that opposition applicants, with the assistance of trademark attorneys, prepare for trademark monitoring and opposition applications in advance.

Summary

Since its implementation in 1983, China’s Trademark Law has undergone four amendments to date. The upcoming fifth amendment to the law marks a further breakthrough based on previous revisions, highlighting two distinct features.

On the one hand, it reflects a shift from prioritising registration to emphasising both use and registration; on the other hand, the amendment process is more pragmatic, with an emphasis on the coordination of the trademark legal system, the enforceability of rules, and the expected stability in practice.

This amendment will also drive new development directions for agency services in China’s trademark field.

In the future, trademark agency services will focus more on precise trademark layout and long-term brand planning, assisting market entities in scientifically planning trademark investments, regulating the exercise of trademark rights, and truly embodying and highlighting the market and legal value of trademarks in the new era.

Takeaways

• Draft contains 11 new articles
• Focuses include trademark squatting
• Examination process efficiencies

Hu Gang is a board member and deputy general manager at China Patent Agent (HK). He can be contacted at: hgang@cpahkltd.com