Trademark law to set stricter standards

July 29, 2010

With most applications globally, China looks to deter malicious filings

New standards of proof for ownership and a ban on malicious registration will be included in the next draft of China's trademark law, which has been under discussion, according to a senior government official.

Copying registered trademarks and applying to use the marks on other types of goods will also be illegal, Li Jianchang, chief of the trademark department of the State Administration of Industry and Commerce (SAIC), told China Daily.

Under current legal system, only well-known trademarks are eligible for protection beyond their specific industry. Well-known trademarks are the most vulnerable to counterfeit attack and have long been a priority worldwide.

"Since China joined the Paris Convention in 1985 and the World Trade Organization in 2001, our trademark system is in accordance with international practice," Li noted.

"We fulfilled the promises we pledged to the WTO and provide like protection to both domestic and foreign well-known trademark holders."

Compared with most countries where only the courts settle issues surrounding infringement, China has a double mechanism that combines the judicial system and administrative departments in industry, commerce and customs, Li said.

Various levels of administration are also legally authorized to initiate investigations into suspected trademark violations.

The authorities' efforts also include regular visits to companies to gauge their needs in trademark protection, offering consultancy services for corporate brand-building and crackdowns on counterfeits, Li said.

To date, 112 foreign trademarks from 15 countries and regions have been recognized as well-known trademarks in China, accounting for 6 percent of the nation's total.

Illustrating the appeal of its market, China is among the most popular nations for foreign trademark applicants, Li cited World Intellectual Property Organization Director Francis Gurry saying.

Increased protection of intellectual property and an improved investment environment have also contributed to boosting overseas business confidence in China, Li added.

Trademark applications by foreign-funded companies increased nearly 2 percent to about 6,600 in the first half of this year, bringing the total to some 148,000.

More than 490,000 applications from both home and abroad have been filed in China in the same period, a 35 percent year-on-year increase.

The projected full-year total of more than 1 million trademark applications would be a new record high, Li said.

With a total of 7.7 million applications and 4.9 million trademarks, China ranks top in the world in both categories.

In the face of mounting numbers of applications, the SAIC has overhauled procedures, expanded the workforce and improved its efficiency.

The organization processed more than 1.4 million applications in 2009, up 88.7 percent over the previous year, with the processing period shortened to 17 months from 36 months two years ago