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China (PRC) - Amended Trademark Law

The Trademark Law of China (PRC) has been amended to conform to China's accession to the WTO and comply with the requirements of TRIPs. The principal amendments are summarized below.

1. The definition of a trademark has been broadened to include any distinguishable visible signs, including words, devices, letters, numerals, three-dimensional objects and combinations of colors, or their compositions.

2. Under the former law, any mark which constituted the generic name of the goods, or was descriptive of the quality, main material, function, usage, weight, quantity or other characteristics of the goods could not be registered. The standard of registrability has been lowered under the new law which provides that only marks which are merely the generic name of the goods, or are merely descriptive of the quality, main material, function, usage, weight, quantity or other characteristic shall not be registered.

3. It is now possible to obtain registration of generic names, devices, models of the goods, and indications which are merely descriptive of the quality, main material, function, usage, weight, quantity or other characteristics of the goods upon submission of evidence of acquired distinctiveness through use; this was not permissible under the former law.

4. Protection is afforded to well-known trademarks. Any mark which is a copy, imitation or translation of a third party’s well-known mark covering identical or similar goods or services will not be acceptable for registration, whether or not the well-known mark is registered in China. With respect to different and unrelated goods and services, the mark will only be prohibited from use or registration if it is proved to be a copy, imitation or translation of a well-known registered mark in China.

5. Trademarks that contain geographical indications of the goods and are used in respect of goods which do not originate from the place denoted in the geographic indication shall not be registered.

6. Priority may be claimed by a trademark applicant within six months of first use of the trademark in respect of the goods displayed in an international exhibition organized or recognized by the Chinese government.

7. Decisions issued by the Trademark Review and Adjudication Board (TRAB) in respect of applications, oppositions or cancellation actions are no longer final. It is now possible to appeal the TRAB’s decision in the People’s Court.

8. Under the amended law, the Administration for Industry and Commerce (AIC) has the authority to confiscate and/or destroy infringing goods. However, the AIC cannot order the infringing party to pay damages to the trademark owner.

9. The People's Court has the discretion to impose damages and an amount not exceeding RMB500,000 (approximately US$60,000) can be awarded against the infringing party if the actual loss suffered by the trademark owner cannot be calculated.

10. A trademark owner can now apply to the People’s Court for a preliminary injunction and an order for the preservation of assets and evidence in proceedings against an infringer.


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© Copyright 2002 Ladas & Parry - Posted May 2002
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