The trademark regime is undergoing systemic recalibration to address escalating abuse of registration processes, with 135,000 malicious applications rejected or invalidated in 2023—a 28% annual increase—as authorities prioritize quality over quantity in safeguarding market integrity. The reforms, anchored by the fifth amendment to the Trademark Law (drafted in 2023 and slated for 2025 implementation), target speculative filings that exploit public resources, celebrity names, and emerging technologies, while reinforcing penalties for bad-faith actors and agencies complicit in hoarding practices.
Central to the revised framework is Article 4’s expanded definition of “malicious registration,” now encompassing applications filed through deception, pre-emptive squatting on public-interest terms, or intent to profit through assignment rather than genuine use. The amendment introduces fines up to CNY 250,000 (US$34,500) for violators, mandates compulsory transfer of illicitly registered marks, and holds trademark agencies accountable for facilitating abusive filings. These measures build on the 2019 revision’s foundational principle of “use intent” but address gaps where prior laws permitted oppositions only post-registration, allowing squatters to exploit procedural delays.
Enforcement mechanisms have been fortified through the CNIPA’s 2023–2025 Work Plan on Systematic Governance of Malicious Trademark Registration, which mandates real-time monitoring of high-risk categories (e.g., luxury goods, AI-related terms) and blockchain-based traceability systems to authenticate usage claims. Local trademark offices are required to deny registrations, invalidate marks, and block assignments for filings deemed non-compliant, with over 12,300 counterfeit listings removed from e-commerce platforms in Q1 2025 alone. Judicial rigor has escalated, with courts applying punitive damages exceeding statutory limits in cases of “obvious willful infringement,” exemplified by the Beijing Intellectual Property Court’s 2023 ruling imposing CNY 10 million (US$1.38 million) in compensation against a liquor company for cloning the “Yege” trademark series.
A critical challenge lies in reconciling registration practices with usage obligations. Under Article 49 of the Trademark Law, marks unused for three consecutive years face cancellation—a policy enforced in 18% of cases in 2024 involving “multiple trademarks owned by the same person.” Courts now apply strict evidentiary standards, requiring registrants to demonstrate distinct commercial deployment of each mark. For instance, in Sheng Yaqi Co. v. Carally Co. (2019), the Beijing High People’s Court invalidated a design mark when usage evidence pointed to a separate text trademark, emphasizing that minor modifications lacking unique identifiers fail to meet “genuine use” thresholds.
International stakeholders face dual pressures: while China’s accession to the Madrid Protocol saw foreign filings grow 9% in 2023, non-Chinese rights holders contest uneven enforcement, particularly in cross-border e-commerce. The CNIPA’s “Clean Net” campaign removed 23,000 listings misusing EU geographical indications (GIs) like Prosciutto di Parma in 2024, yet 63% of European firms report persistent challenges in combating localized squatting. Domestic enterprises, meanwhile, are advised to preemptively register variants across all 45 trademark classes and maintain blockchain-authenticated usage records to withstand cancellation challenges.
The regime’s pivot toward “quality governance” is underscored by AI-driven examination systems, which reduced average review periods by 40% in 2024 while flagging 72% of abnormal filings. However, structural imbalances persist: coastal provinces account for 82% of high-value trademarks, prompting the CNIPA to allocate CNY 30 billion (US$4.1 billion) for inland innovation hubs under its 2025 Regional Competitiveness Index.
As the trademark ecosystem evolves from volume-driven growth to precision regulation, its success hinges on harmonizing legislative severity with technological adaptability—a balancing act between curbing abuse and fostering global trust in its IP frameworks. With 4.6 million applications filed in 2023 and malicious filings still comprising 14% of the total, the 2025 amendments represent not merely legal reform but a redefinition of trademark value in an innovation-led economy.