China mulls Trademark Law amendment to build world-class business environment

China has initiated revisions to its Trademark Law to tackle emerging challenges in the sector, enhance intellectual property protection and lay a more robust legal foundation for creating a market-oriented, law-based and world-class business environment.

The draft amendment is being reviewed by the Standing Committee of the National People's Congress, China's top legislative body, following its submission to the committee on Monday.

Shen Changyu, head of the China National Intellectual Property Administration, emphasized the crucial role of the current law on trademark protection and economic growth. He cited data showing that by December 2024, China had received 83.52 million trademark registration applications and held 49.78 million valid trademarks, both of which are the highest figures globally.

"With rapid economic and social growth, however, we have frequently encountered new situations and emerging issues in the field, such as malicious trademark registration, trademark squatting or hoarding and infringement," he said, adding that these issues need to be addressed through legislation.

The draft revision consists of 9 chapters and 84 articles, strengthening the regulation of trademark agencies and practitioners, with clarification of the specific circumstances of malicious trademark registration applications and establishes standards for penalties, according to him.

For instance, the draft amendment stipulates that trademark applications that are not intended for use and clearly exceed the needs of normal production and business operations will not be registered. If this requirement is violated, the trademark applicant will be deemed to have engaged in malicious trademark registration. If such actions cause adverse effects, enforcement authorities may issue a warning and impose a fine of up to 100,000 yuan ($14,204).

Shen added that IP regulators across the country will also optimize the reviewing and approval procedures of trademark applications to provide convenience for applicants.

The current law, which came into effect in 1983, has been amended four times prior to the latest revision. It has played a positive role in encouraging innovation, building brands, regulating the market and expanding openness.