Standard Use of Trademarks in China

Trademark registration in China is only the starting point. Ongoing, compliant use of a registered trademark is essential to preserve rights, defend against challenges, and reduce regulatory exposure. Many overseas companies assume that registration alone is sufficient. Under Chinese law, this assumption creates risk.

This article outlines what constitutes standard trademark use in China, the compliance requirements that follow registration, and the legal risks that arise where use is inconsistent, incomplete, or undocumented.

Why Trademark Use Matters in China

China operates a first-to-file system, but registered rights are not immune from scrutiny. Trademarks that are not used properly, or at all, can be challenged, partially cancelled, or lost entirely.

Authorities, competitors, and commercial counterparties increasingly assess not just whether a mark is registered, but whether it is being used correctly, continuously, and in line with its approved scope.

What Constitutes Standard Trademark Use

Under Chinese trademark law and administrative practice, standard use has several defining features.

Use in Commerce

The mark must be used in genuine commercial activities within China. This includes sale, manufacture, distribution, or marketing of goods or services bearing the mark.

Token use or internal use alone is insufficient.

Use on Approved Goods and Services

The trademark must be used on the goods or services listed in the registration. Use outside the registered classes does not count towards maintaining the registration and may expose the business to infringement claims.

Use in the Registered Form

The mark should be used exactly as registered. Material changes in wording, design, colour, or layout may invalidate the use for legal purposes.

Minor stylistic adjustments may be tolerated, but reliance on this is risky without prior review.

Public Facing Use

Valid use typically includes placement on products, packaging, labels, websites, marketing materials, invoices, contracts, or service platforms accessible in China.

Behind the scenes use or overseas use does not qualify.

Compliance Requirements After Registration

Three Year Non Use Rule

Any registered trademark that has not been used for three consecutive years may be subject to non use cancellation. Third parties frequently use this mechanism to clear marks or weaken negotiating positions.

The burden of proof sits with the trademark owner.

Evidence of Use

Rights holders should retain clear, dated evidence of use, such as:

• Sales invoices issued in China

• Product packaging and labels

• Advertising and promotional materials

• Distribution agreements

• Screenshots of Chinese language websites or platforms

• Customs and logistics documentation

Evidence must show use in China, during the relevant period, and for the registered goods or services.

Licensing and Authorisation

Where a trademark is used by a distributor, affiliate, or licensee, the relationship should be documented properly. In many cases, licence recordal with the authorities is advisable to ensure the use is legally attributed to the trademark owner.

Common Compliance Failures

Foreign businesses most often encounter problems in the following areas:

• Registering defensively but never launching in China

• Using a modified logo or translated name not covered by the registration

• Allowing distributors to use the mark without formal agreements

• Failing to retain evidence of use over time

• Assuming overseas sales or online visibility qualify as Chinese use

Each of these gaps weakens enforceability and increases exposure.

Legal Risks of Improper Trademark Use

Non Use Cancellation

Competitors or bad faith registrants may apply to cancel unused marks. Once cancelled, re registration is not guaranteed, particularly in crowded classes.

Loss of Enforcement Rights

Without compliant use, trademark owners may struggle to enforce rights against infringers, including on e commerce platforms or through administrative actions.

Infringement Exposure

Using a mark outside its registered scope, or in a materially altered form, can itself constitute infringement of third party rights.

Commercial and Transactional Risk

During investment, licensing, or exit transactions, weak trademark use records often lead to valuation reductions, delays, or deal restructuring.

The Role of the China National Intellectual Property Administration

The China National Intellectual Property Administration oversees trademark registration, opposition, cancellation, and administrative enforcement. Its approach to use evidence is formal and document driven.

Foreign companies are held to the same standards as domestic entities, with no allowance for lack of local familiarity.

Practical Risk Management Steps

To protect trademark value in China, businesses should:

• Align actual use strictly with registered marks and classes

• Conduct periodic trademark use audits

• Maintain organised, dated evidence files

• Record licences and distributor arrangements where appropriate

• Review branding changes before implementation

• Monitor for non use cancellation threats

Proactive management is significantly less costly than recovery action after rights are challenged.

How Woodburn Can Help

Woodburn supports international businesses with trademark strategy, compliance review, and risk management in China. This includes assessing whether current trademark use meets regulatory standards, identifying exposure points, and coordinating with specialist advisors where corrective action is required.

For companies operating in or entering the Chinese market, disciplined trademark use is not optional. It is a core commercial and legal safeguard.

---

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.

Contact us