Summary of Key Changes
The newly enacted Trademark Law, passed in June 2026, will come into effect on January 1, 2027. This law represents a comprehensive upgrade to the trademark system, covering various aspects such as online use, protection of dynamic logos, crackdown on malicious trademark hoarding, reinforcement of existing rights, and support for companies expanding overseas. It aims to adapt to the development of the digital economy while regulating market order, urging businesses to shift from a focus on mere registration to a holistic approach to brand management throughout the entire lifecycle.
Detailed Interpretation of the Changes
1. Expanding Trademark Protection in the Digital Age
- Online Use Recognized as Official Trademark Usage: Online activities such as live streaming, e-commerce, and app displays are now officially recognized as legitimate trademark usage. For example, showing a brand logo during a live stream on Douyin or using it on a Taobao product page qualifies as legal evidence of trademark use.
- Dynamic Logos Can Be Registered: Dynamic elements like app loading animations, startup animations, and character movements in games can now be registered as trademarks, filling the gap left by static logos.
Why This Change?
With more people shopping online and using apps, a brand's presence on digital platforms is just as important as its physical one. Dynamic logos are essential identifiers for many internet companies (e.g., the startup animation of WeChat), and they need legal protection.
Impact on Businesses:
- Businesses should keep records of their online activities (such as live stream screenshots, e-commerce pages, and app interfaces) for potential rights protection or proof of trademark usage in the future.
- It's advisable to assess whether any dynamic assets (e.g., product startup animations or brand effects in videos) can be registered as trademarks.
2. Hoarding Trademarks Is No Longer Acceptable
- Stricter Criteria for Application: Applications that are not intended for actual use or significantly exceed normal business needs will be rejected (e.g., a small company registering hundreds of trademarks in unrelated industries).
- Penalties for Malicious Applications: Rejected applications may result in fines of up to 100,000 yuan.
Why This Change?
Previously, some people registered large numbers of trademarks with the intention of selling them or squatting on others' brands, wasting trademark resources. The new law ensures that trademarks serve a practical purpose in business operations.
Impact on Businesses:
- Before applying for a trademark, businesses need to consider whether the trademark is relevant to their business (current or planned). For example, registering a “coffee” trademark makes sense for a coffee shop, but registering a “car” trademark might be considered unnecessary.
- Businesses should dispose of unused trademarks to avoid having them revoked by the authorities.
3. Unregistered Well-Known Brands Are Also Protected
- Protection for Unregistered Famous Trademarks: Unregistered famous brands (e.g., locally recognized time-honored brands) can now be protected from unauthorized use in unrelated industries.
- Shortened Opposition Period: The opposition period for trademark registrations has been reduced from three months to two months, allowing for quicker responses to potential infringements.
Impact on Businesses:
- Well-known but unregistered brands should collect evidence of their usage (sales data, advertising, customer reviews) in case of infringement.
- Regular monitoring of trademark announcements is crucial; any potential infringement must be addressed within two months.
4. Trademark Use Must Be Meaningful
- Responsibility for Poor Quality: If a business allows others to use its trademark and the quality of their products is poor, it can terminate the license agreement.
- Misleading Usage: Misleading practices (e.g., claiming a product is imported when it's actually domestic) or exaggerating product benefits can lead to fines or trademark revocation.
- Inactive Trademarks Are Revoked: Trademarks that are not used for three years will be automatically revoked by the authorities.
Impact on Businesses:
- Brand licensing agreements should clearly specify quality standards and termination conditions.
- E-commerce content and promotional statements must be accurate; false claims (e.g., “100% imported”) require verifiable evidence.
- Core trademarks should be actively used, either on official websites or social media platforms. Unused trademarks should be either put to use or cancelled.
5. Support for Overseas Rights Protection
- International Recognition: Chinese trademark authorities can issue certificates of domestic fame to help companies defend their trademarks abroad (e.g., Huawei using such certificates in Europe).
- Prohibition of Malicious Litigation: Companies engaging in fabricated infringement claims will face compensation and possible legal consequences.
Impact on Businesses:
- Before entering new markets, businesses should register trademarks locally. In case of infringement, they should gather evidence of domestic use and seek assistance from Chinese trademark authorities.
- Evidence-based rights protection is essential; base litigation strategies on factual grounds to avoid unnecessary losses.
Recommendations for Businesses
Before the new law takes effect, consider the following:
1. Evaluate Existing Trademarks: Identify unused or irrelevant trademarks and cancel them.
2. Collect Online Usage Evidence: Keep screenshots from live streams, e-commerce pages, and app interfaces.
3. Assess Dynamic Assets: Check if any dynamic logos can be registered as trademarks.
4. Monitor Trademark Announcements: Stay vigilant against potential infringements and respond promptly to any oppositions.
5. Review Licensing Agreements: Include quality standards and termination clauses in licensing agreements.
6. Plan for Overseas Expansion: Register trademarks in target markets and prepare evidence of your brand's popularity in China.
This legal update is not just about changing rules; it encourages businesses to adopt a more proactive and strategic approach to trademark management. After all, valuable trademarks are those that are actively used, not merely accumulated for future use.