China's Trademark Rules Are Changing in 2026, But "First to File" Still Wins
- Jul 7
- 3 min read
If your business sells, manufactures, or even just posts online content that could plausibly reach China, someone else may already be able to register your brand name there before you do. China operates on a strict first-to-file trademark system: whoever files with the China National Intellectual Property Administration (CNIPA) first generally owns the mark, regardless of where else in the world you've used it, for how long, or how well known it is. A trademark registered in the US, EU, UK, or Hong Kong provides no protection in China on its own.
Why this is back in the news in 2026
CNIPA has been tightening its stance on trademark abuse, and a broader amendment to China's Trademark Law is expected to move through the National People's Congress this year. The direction of travel cuts two ways for foreign brand owners:
Tougher scrutiny on genuine use. CNIPA has raised the evidentiary bar for proving a trademark is in active commercial use, which creates real exposure for companies holding China registrations that have gone dormant, but it also gives legitimate brand owners a sharper tool to cancel squatted marks that were never genuinely used.
Stricter checks on bad-faith filings. The amendment strengthens authorities' ability to refuse applications that clearly aren't intended for genuine use, and to catch opportunistic filings by former partners, distributors, or agents earlier in the process.
Shorter opposition windows. Opposition periods are shrinking to as little as two months in some cases — meaning brand owners have even less time to spot and challenge a squatted filing once it's published.
New registrable mark types. Movement, sound, colour, position, and hologram marks are becoming explicitly registrable, opening new protection options for brands with distinctive non-traditional branding.
Why squatting is still a live threat, not a legacy problem
Trademark squatters in China actively monitor overseas trademark filings, crowdfunding campaigns, product launches, and even social media activity. Once a growing foreign brand shows up on their radar, filing a matching China trademark can take days. Once they hold the registration, a squatter's options include demanding a buyout at whatever price they think the brand will pay, demanding ongoing licensing fees to use your own name, or in some cases manufacturing and selling counterfeit goods under your brand, fully legally from a Chinese IP standpoint, because they hold the registration.
A common and often overlooked route in is through relationships the brand itself creates: a manufacturer, distributor, or local partner who has access to the brand name, packaging, and product plans before any China trademark filing exists. Sharing brand assets with a Chinese factory or partner before filing is one of the most common ways brands end up squatted by someone they trusted.
What "getting it right" actually looks like
A defensible China trademark position generally requires:
Filing before any exposure in China — ideally 12–18 months before a planned launch, and always before sharing brand details with any China-based manufacturer, distributor, or partner.
Registering the full set: the English name, the Chinese character name, and the Pinyin transliteration. Missing the Chinese-language version has cost well-known brands significant traffic and market confusion when a local party registered it instead.
Filing in every relevant class and subclass — China's classification system splits each of the 45 international classes into narrower subclasses, and protection in one subclass doesn't automatically extend to a neighbouring one. Filing only a broad, generic description leaves gaps a squatter can exploit.
Registering in the brand owner's own name, never a partner's or distributor's, however convenient that seems at the time.
Ongoing monitoring of the Trademark Gazette even years after registration, since squatters increasingly target a brand's next product line rather than the original mark.
Acting before there's a problem to fix
If a squatter has already filed, remedies exist, opposition, non-use cancellation, bad-faith challenges, but all of them are slower, costlier, and less certain than filing first. The realistic cost of a proactive China trademark filing is a small fraction of what a rebrand, buyout, or multi-year legal dispute costs later.
Woodburn's trademark registration service handles CNIPA filings for foreign brands, including classification strategy, English/Chinese/Pinyin coverage, and ongoing monitoring, so protection is in place before a squatter has the chance to move first.
Haven't registered your trademark in China yet or not sure your existing registration actually covers you? Book a free 30-minute call to discuss getting your brand properly protected.
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.
