Summary of the Key Points
This news report exposes the practice of many domestic businesses using clever trademarks to mislead consumers through linguistic tricks. These businesses register terms such as “one and a half buckets,” “more than half a bag,” “0 additives,” and “hand-made” as trademarks, taking advantage of the ambiguity of trademark symbols (™ or ®) to make consumers believe these descriptions represent actual product features, thereby gaining a higher price or increased sales. The National Intellectual Property Administration has declared nearly 5,000 of these trademarks invalid and has strengthened its enforcement efforts by revising the trademark law. This tactic is not unique to China; businesses around the world use similar strategies.
Detailed Analysis
1. Businesses’ Linguistic Tricks: These Trademarks Are Tricks
There are five main types of clever trademarks that exploit consumer psychology:
- Creating New Concepts: Using well-known terms as a cover, such as Jinmailang’s “one and a half buckets” or Baixiang’s “more than half a bag.” These terms suggest a larger quantity, but in reality, “more than half a bag” only contains 25 grams—far from half the claimed amount.
- Claiming Titles: Registering terms related to craftsmanship or quality, such as “hand-made” or “Northern Strength,” to mislead consumers into thinking the products are handmade when they are actually machine-made.
- Creative Confusion: Using visual misrepresentation, for example, Qianhe registering “Qianhe 0” as a trademark, with the “0” on the packaging larger than the brand name, leading consumers to believe the product contains no additives (when in fact, it only excludes a few common additives).
- Misleading Place Names: Leveraging the reputation of famous locations, such as using “Qinghai Lake” for Sichuan salt or “Northeast Rice” for Hubei rice. Even terms like “New Zealand Ranch” or “Hong Kong Pharmacy” have nothing to do with the actual origin of the products.
- Excessive Advertising Slogans: Registering entire promotional phrases as trademarks, such as “Xiaodao Dual Power: Strong, Energy-Saving, and Long-Running” or “Kangshifu Hand-Rolled Noodles: Elastic and Tangy,” which consumers mistake for product descriptions but are actually trademarks.
2. Why Are Clever Trademarks So Prevalent? Systematic Loopholes + the Power of E-commerce
The prevalence of clever trademarks is due to two main factors:
- Historical Systematic Loopholes: China’s trademark law previously followed the “first-to-file” principle, allowing anyone to register a trademark first. TM (trademark) symbols could be used freely even if the application was rejected, allowing businesses to print a small ™ on their packaging without repercussions. In contrast, the U.S. follows the “first-to-use” principle, which reduces such issues.
- The Amplifying Effect of E-commerce: In the offline era, clever trademarks spread slowly. However, with live streaming and algorithmic recommendations, they can quickly reach a wide audience. Since the profit margin on food and daily necessities is low, businesses can use misleading trademarks to cut research and development costs and make quick profits.
3. The Government Is Taking Action: Revised Trademark Law to Crack Down on Misleading Uses
To address the problem, the government has taken significant steps:
- Nearly 5,000 Trademarks Declared Invalid: As of May 2026, nearly 5,000 trademarks have been declared invalid, and 1.273 million similar applications have been rejected.
- New Trademark Law to Be Implemented in 2027: The new law explicitly prohibits the registration and use of misleading trademarks. Existing trademarks that are misleading can be declared invalid, and businesses that use them can be fined up to five times their annual turnover (or 250,000 yuan), making such practices clearly illegal.
4. Clever Trademarks Are a Global Phenomenon
Clever trademarks are a global issue:
- Misleading Ingredients: Companies like Kraft’s “Made with Real Cheese” snacks contain less than 2% real cheese.
- Hidden Facts: Coca-Cola’s VitaminWater claims to contain “everything you need in a vitamin,” but each bottle contains 8 teaspoons of sugar.
- False Origin Claims: Japanese companies package Chinese eels as “Sanhe Iseki” and Korean udon as “Japanese udon,” using trademarks or packaging to misrepresent the origin.
5. How Can Consumers Protect Themselves?
Consumers don’t need to understand the trademark law in detail; they should focus on three key points:
- Watch for Symbols: Be alert to the ™ (unregistered) or ® (registered) symbols on packaging. If these symbols appear after terms like “one and a half buckets” or “0 additives,” they may indicate a trademark, not the actual product feature.
- Check the Actual Details: Don’t trust promotional claims; read the net content and ingredient lists to verify the product’s actual composition.
- Avoid Visual Misleading: Large fonts for “0” or “100%” on packaging may be trademarks; always check the small print for detailed information.
In Conclusion
Clever trademarks essentially involve businesses exploiting information asymmetry to profit from consumers’ ignorance. However, with stricter government regulation, such practices will become increasingly difficult. As consumers, being more discerning can help us avoid falling for these tricks. After all, no matter how clever the businesses are, they can’t outsmart our vigilant eyes.