Trademark registration needs to be the first step for businesses operating in China

Trademark registration needs to be the first step for businesses operating in China

Trademark registration needs to be the first step for businesses operating in China

Foreign businesses that produce goods in China commonly worry that their Chinese suppliers or a local rival would copy their designs, but they are far too negligent in protecting their trademarks. This approach misses the universal truth that trademark stealing is simple whereas product design stealing is significantly more difficult. Thus, the design will almost always be the last object taken while the trademark will nearly always be the first.

The Need for trademark registration in China

The false perception of threat is further exacerbated by a misunderstanding of Chinese trademark law. International businesses sometimes mistakenly assume that China trademarks only matter if they are selling their goods there. A Chinese trademark, in their opinion, is irrelevant because they are only exporting their product. However, under Chinese law, the exclusive right to use a trademark extends to both the manufacturing of the goods bearing the mark in China and their international sales. Therefore, the use of the brand by the producer while producing is a trademark use covered by trademark law. The product is subsequently sold by the manufacturer to the foreign customer, and this transaction is governed by Chinese trademark law.

Think about what would happen if a third party—possibly a rival or a trademark squatter—registered a foreign brand’s trademarks. In that case, the opposing party has the right to entirely stop the foreign company’s production activities in China.

The Chinese manufacturer manufacturing the product(s) for the foreign brand might be commanded to cease using the mark immediately since doing so is trademark infringement. Second, that party can have China Customs seize trademarked goods at the port of export, blocking the cargo from leaving China, after submitting the trademark with China Customs. This comes as an especially unpleasant surprise when the international customer has already paid for the goods.

The cost-benefit analysis for trademark registrations is as easy as it gets if you are a Chinese manufacturer. Registration is quick and affordable, yet the consequences of not registering can be serious. Therefore, the first step for any business involved in Original Equipment Manufacturing production in China should be to register all of its trademarks in all applicable classes.

 ***Other Articles***

– You could see How To Register Trademark in China here.

– You could visit here to see Procedure of Trademark in China.

– You could visit here to check Required documents of filing trademark in China.

Contact AAA IPRIGHT: Email: [email protected]

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