A Practical Guide for Foreign Companies: When Your Trademark Is Already Registered in China

Discovering that your trademark has already been registered in China is unsettling, particularly when the mark is central to your commercial identity. This situation is common for overseas businesses entering the Chinese market later than expected or without early intellectual property planning.

China operates on a first to file system. Rights are generally awarded to the party that files first, rather than the party that used the mark first elsewhere. That framework creates both risk and opportunity. While the hurdle is real, there are established legal and commercial pathways that can allow foreign brands to regain control.

Why This Happens So Often

Trademark squatting in China is well established. Individuals or entities register foreign brand names in anticipation of later resale or leverage. Others register marks defensively across multiple classes, even without intent to trade.

Many overseas businesses only discover the issue when attempting to launch, appoint distributors, open e commerce channels or manufacture locally. By that point, the registration may already be active.

Step One Understand Who Owns the Mark

Before any action is taken, it is essential to establish the full facts:

• Who is the registered owner

• Which classes are covered

• Whether the mark is in active use

• When the mark was filed and approved

This information is obtained through searches at the China National Intellectual Property Administration, commonly referred to as CNIPA. Timing, scope and usage history will determine which options are available.

Legal Routes to Challenge an Existing Registration

Several legal mechanisms exist under Chinese trademark law. The appropriate route depends on the specific circumstances.

Opposition If the application is still within its publication window, a formal opposition can be filed. This is time sensitive and must be supported by clear evidence.

Invalidation For registered marks, invalidation may be possible where bad faith can be demonstrated. Evidence can include patterns of mass registrations, lack of genuine use, or prior commercial presence overseas.

Non Use Cancellation If a mark has not been used in China for three consecutive years, a non use cancellation may be filed. The burden then shifts to the registrant to prove legitimate use.

Each of these processes involves procedural complexity, evidential thresholds and local practice nuances. Outcomes are fact specific rather than automatic.

Commercial Resolution Through Negotiation

In some cases, negotiation provides the most direct path. Purchasing the trademark from the current owner can be faster than litigation, particularly where time to market is critical.

Careful structuring is required. Pricing, transfer mechanics and risk management all matter. Informal approaches without local advice can inflate costs or weaken negotiating position.

Preventing Repeat Exposure

Once control is regained, future protection should be tightened:

• Register the trademark in China early, even if market entry is planned later

• File both English and Chinese language versions of the brand

• Register across relevant and defensive classes

• Align trademark strategy with manufacturing, distribution and digital plans

China should be treated as a standalone jurisdiction rather than an extension of overseas filings.

Strategic Perspective for Foreign Brands

Losing a trademark in China is not the end of the road, but delay reduces leverage. The earlier the issue is identified, the broader the available remedies.

With the right legal approach and commercial judgement, many overseas companies do successfully reclaim their brands and re enter the market with confidence.

For businesses operating in or with China, trademark planning is not an administrative detail. It is a foundational commercial safeguard that deserves early and informed attention.

For foreign companies facing trademark challenges in China, we provides clear assessment, strategic direction and coordinated local support to help regain control and protect long term market entry.

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Woodburn Accountants & Advisors is one of China and Hong Kong’s most trusted business setup advisory firms.

Woodburn Accountants & Advisors is specialized in inbound investment to China and Hong Kong. We focus on eliminating the complexities of corporate services and compliance administration. We help clients with services ranging from trademark registration and company incorporation to the full outsourcing solution for accounting, tax, and human resource services. Our advisory services can be tailor-made based on the companies’ objectives, goals and needs which vary depending on the stage they are at on their journey.

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