China has adopted a revised Trademark Law that will enter into force on 1 January 2027. The reform introduces significant changes aimed at strengthening trademark protection, combating bad-faith filings, and encouraging genuine commercial use of trademarks.
The revised law also reinforces the importance of genuine trademark use. In particular, it confirms that our longstanding recommendation to file trademark applications only for goods and services genuinely intended to be used will become even more important in practice.
- Stronger Measures Against Bad-Faith Trademark Filings — Applications filed without a genuine intention to use, and clearly exceeding normal business needs, will be rejected. Applicants may face administrative fines; agencies that knowingly assist such filings may also be fined or suspended.
- Easier Access to Punitive Damages — The threshold for punitive damages is lowered by replacing the previous “malicious” standard with “intentional” infringement. Courts may award damages of up to five times the actual loss.
- Opposition Period Reduced from Three Months to Two Months — This shorter timeframe makes regular trademark watch services more important than ever.
- New Sanctions for Misleading Trademarks — Applicants who intentionally file deceptive marks may face fines; registered marks used in a misleading manner may face financial penalties and revocation.
- Motion Marks Become Registrable — Animated logos and similar digital brand elements are now expressly recognized. Use through e-commerce, livestreaming, websites and social media constitutes valid evidence of use.
- Expanded Protection for Well-Known Trademarks — Protection against bad-faith filings now extends to certain unregistered well-known trademarks. CNIPA may issue confirmation letters on well-known status for overseas proceedings.
- Greater Focus on Genuine Use — Authorities may proactively cancel trademarks unused for three consecutive years without justified reasons; owners unable to demonstrate genuine use may face limits on damages claims.
- New Absolute Grounds for Refusal — Names, flags, emblems, medals, major theoretical achievements and historical events relating to the Communist Party of China are added to the list of prohibited signs.
What Should Trademark Owners Do?
Increase trademark watch frequency given the shortened two-month opposition period.
File trademarks only where there is genuine commercial intention to use them.
Maintain comprehensive evidence of use, particularly online.
Review unused registrations and consider portfolio management.
Take the revised punitive damages provisions into account when developing enforcement strategies.
Among all the changes, the reduction of the opposition period from three months to two months is likely to have the greatest practical impact for businesses operating in or entering the Chinese market.